Company Disclosure: Dividend Tax Deduction Procedures

Dividend Details

  • The Board of Directors recommended a Final Dividend of ₹0.50 per equity share (10% on face value of ₹5 each) at their meeting held on Wednesday, May 20, 2026
  • Dividend payment is subject to shareholder approval at the Annual General Meeting scheduled on Tuesday, August 18, 2026
  • Dividend will be payable to members whose names appear in the Register of Members/list of Beneficial Owners as on Wednesday, August 05, 2026 (record date)

Tax Deduction Requirements

Pursuant to the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, and the Company is required to deduct TDS at the time of dividend payment. TDS rates vary depending on shareholder category and documentation provided.

Resident Shareholder TDS Rates

  • Default rate: 10% for resident shareholders with valid PAN
  • Exemption cases: No TDS deduction if aggregate dividend in Tax Year 2026-27 does not exceed ₹10,000
  • Form 121 submission: NIL deduction for eligible shareholders providing Form 121 with mandatory PAN
  • Certificate under Section 395(1): Rate as provided in the certificate for lower/NIL deduction
  • Specific exempt entities: NIL deduction for Insurance Companies, certain Corporations, Mutual Funds, Alternative Investment Funds, Recognized Provident Funds, Approved Superannuation Funds, Approved Gratuity Funds, and National Pension Scheme Trust (with required documentation)
  • Higher rate: 20% for resident shareholders without PAN/invalid PAN

Non-Resident Shareholder TDS Rates

  • Default rate: 20% (plus applicable surcharge and cess) for non-resident shareholders other than FIIs/FPIs
  • FIIs/FPIs: 20% (plus applicable surcharge and cess) subject to applicable Treaty rate
  • Treaty benefits: Shareholders may opt for tax treaty rates upon submission of required documents including PAN card, Tax Residency Certificate, electronically filed Form 41, and various declarations

Important Notes for Shareholders

  • Valid PAN recording is mandatory for registered Folio/DP Id-Client Id
  • Shareholders with multiple accounts linked to single PAN will have higher applicable tax rate considered across all holdings
  • Documents must be submitted through specified online portal by August 5, 2026 (Record Date)
  • No communication/documents on tax determination will be considered after August 5, 2026
  • Shareholders can claim refund through income tax return if higher TDS is deducted
  • All queries should be addressed to RTA, MUFG Intime India Private Limited at Investor.helpdesk@in.mpms.mufg.com
  • Shareholders will be responsible for any income tax demands arising from misrepresentation or omission of information

Disclaimer

The communication summarizes tax provisions only and does not constitute complete tax analysis. Shareholders should consult their own tax advisors. This shall not be treated as advice from the Company or its Registrar & Transfer Agent.

Additional Information

The communication has been sent to all shareholders with registered email IDs and is also hosted on the company website at https://www.orientalaromatics.com/downloads.php.