Dividend Declaration

The Board of Directors declared an interim dividend of Rs. 2.50 per equity share (face value Rs. 2.00 each), representing 125% for the financial year 2026-27. The record date for determining entitlement to interim dividend is fixed as Wednesday, November 11, 2026.

Tax Framework Context

Pursuant to changes introduced by the Finance Act 2020, Dividend Distribution Tax was abolished effective April 01, 2020, making dividend income taxable in the hands of shareholders. The company is required to deduct tax at source as per Income Tax Act, 2025 and Rules framed thereunder, as amended by Finance Act, 2026.

Key Deadline

All documents/declarations must be submitted by shareholders on or before Wednesday, November 11, 2026 by 5:00 p.m. (IST) to enable the company to determine and deduct appropriate TDS/withholding tax rates.

TDS Rates for Resident Shareholders

Standard Rates:

  • 10% TDS for shareholders with valid PAN updated with Depository Participant/RTA
  • 20% TDS for shareholders with no/invalid PAN with Depository Participant/RTA

Lower/Nil TDS Options:

  • Lower TDS certificate issued by Income Tax Department u/s 395 of the Act
  • Benefit under Rule 203 for intermediaries/custodians holding shares for beneficial owners
  • Nil TDS for resident individual shareholders if total dividend during FY 2026-27 does not exceed ₹10,000

Exempt Categories (with required documentation):

  • Individuals furnishing Form 121
  • LIC, GIC, Business Trust (REIT, InVIT) etc. where section 393 doesn't apply
  • Government, RBI, Mutual Funds specified u/s read with Schedule VII, corporations established by Central Act
  • Category I and II Alternative Investment Funds (AIF)
  • Any other entity exempt from TDS under section 393 provisions

TDS Rates for Non-Resident Shareholders

Standard Rates:

  • FIIs/FPIs: 20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial
  • Category III AIF located in International Financial Services Centre: 10% (plus applicable surcharge and cess)
  • Other non-resident shareholders: 20% (plus applicable surcharge and cess) or tax treaty rate
  • Non-resident shareholders who are tax residents of Notified Jurisdictional Area: 30%

Exempt Categories:

  • Sovereign Wealth Funds and Pension funds notified by Central Government under Schedule V: NIL
  • Subsidiary of Abu Dhabi Investment Authority (ADIA) as prescribed under section 11: NIL

Documentation Requirements

Shareholders must submit required documents through dedicated weblink: https://easydividend.nexdigm.com/Shareholders or email: dividend.support@nexdigm.com by November 11, 2026 deadline.

Required documents include: PAN card copies, Tax Residency Certificate (for non-residents), lower TDS certificates, various declaration forms (Annexures 1-9 available on company website), and Electronic Form 41 for non-residents.

KYC Compliance Requirements

Pursuant to SEBI master circular no. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 7, 2024 and Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024, shareholders holding shares in physical form must update PAN, contact details, bank account details, specimen signature and nomination with RTA MUFG Intime India Private Limited. KYC non-compliant folios shall receive dividend payments only through electronic mode effective from April 1, 2024.

Additional Important Notes

  • PAN must be linked with Aadhaar as per Section 262 of Income Tax Act, otherwise treated as in-operative and higher TDS rates apply
  • TDS certificates will be issued electronically to email addresses registered with Depository Participant/RTA
  • Shareholders can download tax credit statements from Income Tax Department's website https://www.incometax.gov.in/iec/foportal (Form 168)
  • Company reserves right to verify PAN details independently and apply higher TDS rates if discrepancies found
  • Higher applicable tax rate will be considered for shareholders holding shares under multiple accounts with different residential status/category under single PAN
  • Shareholders responsible for any income tax demands arising from misrepresentation or omission of information

Website Information

The complete information and annexures are available on company website: www.nrbbearings.com

Disclaimer

The communication is not exhaustive and does not purport to be complete analysis of all potential tax consequences. Shareholders should consult their tax advisors for requisite action.