Company Disclosure: TDS on Dividend Communication

Dividend Recommendation and Key Dates

The Board of Directors at its meeting held on May 29, 2026, recommended a final dividend of ₹0.50 (5%) per equity share (face value ₹10 each) for FY 2025-26, subject to shareholder approval at the 16th Annual General Meeting.

Key Dates:

  • Annual General Meeting: Thursday, September 24, 2026
  • Record Date: Wednesday, September 16, 2026
  • Dividend Payout Date: On or before October 23, 2026
  • Last date to submit tax-related documents: Wednesday, September 16, 2026

TDS Provisions and Requirements

For All Shareholders:

  • SEBI mandates electronic dividend payments only; physical warrants/cheques eliminated
  • Shareholders must update bank account details with depositories or RTA for electronic credit
  • Residential status must be correctly updated with Depository Participant or RTA (KFin Technologies Limited)
  • PAN must be registered and valid to avoid higher TDS rates

TDS Rates for Resident Shareholders:

  • Individuals: 10% TDS with valid PAN; 20% without valid PAN/PAN not linked with Aadhaar
  • No TDS if total dividend during Tax Year 2026-27 does not exceed ₹10,000
  • No TDS if Shareholder provides Form 121 (all fields mandatory) or exemption certificate from Income-tax Department

Specific Requirements for Resident Non-Individual Shareholders:

  • Insurance Companies: Self-declaration of qualification as 'Insurer' under Insurance Act, 1938 + PAN + IRDA registration
  • Mutual Funds: Nil TDS with self-declaration of SEBI registration + PAN + SEBI registration certificate
  • Alternative Investment Fund (AIF): Self-declaration of exemption under Schedule V + PAN + SEBI AIF registration
  • NPS Trust: Self-declaration of qualification as NPS trust + PAN
  • Other non-individual shareholders: Documentary evidence supporting exemption + PAN

For Non-Resident Shareholders:

  • Domestic Tax Law: 20% TDS (plus applicable surcharge and cess)
  • DTAA Option: Shareholders can opt for beneficial treaty rates by submitting:
  • PAN or tax identification number from country of residence (Annexure 3)
  • Tax Residency Certificate (TRC) for 2026-27 valid as on record date
  • Form 41 for Tax Year 2026-27 from Income Tax portal
  • Declaration of meeting treaty eligibility and beneficial ownership (Annexure 4)
  • SEBI registration certificate for FIIs/FPIs
  • Additional documentation for Singapore tax residents regarding Article 24 limitation

Special Provisions

  • Lower withholding possible with certificate under Section 395 of Income-tax Act
  • Benefit under Rule 203 available for intermediaries/stock-brokers with declaration within 2 days from record date (Annexure 5)
  • Highest applicable TDS rate will be applied across all holdings linked to same PAN

TDS Certificate and Refund

  • TDS certificates will be emailed after filing of TDS return
  • Tax credit viewable in Form 168 at TRACES portal or Income Tax e-filing website
  • Shareholders may claim refund through Income Tax Return if tax deducted at higher rate
  • Company not liable for taxes deducted due to non-receipt of documents
  • Shareholders indemnify Company against any income tax demands arising from declaration inaccuracies

Submission Instructions

  • Required forms and documents for Tax Year 2026-27 must be submitted by September 16, 2026
  • Submission via RTA's website: https://mfs.kfintech.com/OnlineSubmissionForm121/Inv_Form121.aspx
  • Or email to: compliance@mangalcompusolution.com
  • Incomplete/unsigned documents or submissions after September 16, 2026, will not be considered

Disclaimer

The communication is not tax advice; shareholders should consult tax professionals for their tax matters.