Dividend Recommendation

The Board of Directors of Rashtriya Chemicals and Fertilizers Limited (RCF), at its meeting held on May 21, 2026, recommended a Final Dividend of ₹1.34 per Equity Share of ₹10 each (13.40%) for the Financial Year ended March 31, 2026. This dividend payment is subject to the approval of shareholders at the ensuing Annual General Meeting (AGM).

Record Date and Entitlement

The final dividend will be paid to shareholders who hold equity shares of the Company as on the record date, which is Friday, September 18, 2026.

Taxability and TDS Framework

As per the Income Tax Act, 2025 (amended by the Finance Act, 2026), dividends are taxable in the hands of shareholders. The Company is required to deduct tax at source (TDS) at the applicable rates at the time of dividend payment.

Key TDS Provisions:

  • Section 397(2) mandates a higher tax rate (the higher of the rate specified in the Act, the rate in force, or 20%) if the recipient fails to furnish a Permanent Account Number (PAN).
  • Shareholders must ensure their Aadhaar is linked with their PAN as per prescribed timelines. Failure to do so will render the PAN inoperative, triggering TDS at the higher rate of 20%.
  • The TDS rate varies based on the shareholder's residential status and the documents submitted to and accepted by the Company.

Detailed TDS Rates and Conditions

Table 1: Resident Shareholders

| Category | Section Reference | TDS Rate | Conditions & Required Documents |

| Government, AIF Category III IFSC | 393(5)(a), 393(1) [Table: Sl. No. 7], 393(4) [Table: Sl. No. 10], 393(2)[Table: Sl. No. 16] | Nil, Nil, 10%, 10% | Requires self-declaration with exemption certificate if details not updated with depository participant (Refer Annexure 1). Specific conditions apply to AIF categories and IFSC units. |

| National Pension System Trust | 393(9) | Nil | - |

| Insurance companies | 393(4) [Table: Sl. No. 10] | Nil | Applicable for companies registered with IRDAI. |

| Resident Individuals | 393(4)[Table: Sl. No. 10] | Nil | Applicable if aggregate dividend during Tax Year 2026-27 does not exceed ₹10,000 OR if valid Form 121 is submitted; and dividend is paid in a mode other than cash. |

| Eligible resident shareholders | 395 | Rate as per certificate | Requires a Lower Deduction Certificate from the Income Tax Authority valid for Tax Year 2026-27. |

| Resident Shareholders not covered above | 393(1) [Table: Sl. No. 7] | 10% or 20% | 10% if valid PAN is registered. 20% in the absence of PAN or invalid PAN. |

Summary for Resident Individuals:

  • (a) No TDS if aggregate dividend for the financial year does not exceed ₹10,000.
  • (b) 10% TDS if dividend exceeds ₹10,000 and a valid PAN is provided.
  • (c) 20% TDS without PAN/Invalid PAN.
  • (d) 20% TDS for non-linking of PAN and Aadhaar.
  • (e) Nil TDS upon submission of Form 121 (if eligibility conditions met).
  • (f) TDS at the rate provided in an order under Section 395.
Table 2: Non-resident Shareholders

| Category | Section Reference | TDS Rate | Conditions & Required Documents |

| FII/FPI | 393(2) [Table: Sl. No. 15] | 20% | Plus applicable surcharge and 4% cess. Lower DTAA rates may apply if documents are furnished (PAN details/Annexure 2, TRC, Form 41, self-declaration/Annexure 3). |

| Other Non-resident shareholders | 393(2) [Table: Sl. No. 17] | 20% | Plus applicable surcharge and 4% cess. Lower DTAA rates may apply if all documents are submitted (PAN details/Annexure 2, TRC, Form 41, self-declaration). |

Important Notes for Non-Residents:

  • The Company is not obligated to apply beneficial DTAA rates automatically; it depends on a satisfactory review of submitted documents.
  • For FIIs/FPIs, the TDS rate of 20% (plus surcharge and cess) shall not be reduced based on a DTAA or lower deduction order.

Procedure for Document Submission

  • Forms (e.g., Form 121) are available on the website of the Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited.
  • The documents must be uploaded to a specific URL on MUFG Intime's website by the record date, Friday, September 18, 2026.
  • The upload process requires selecting the company, providing Folio/DP-Client ID, PAN, financial year, form selection, and attaching relevant documents.
  • Incomplete/unsigned forms will not be considered. No communications will be accepted after the record date.

Key Contacts and Additional Information

  • Queries should be addressed to the RTA at rcfdivtax@in.mpms.mufg.com or to the Company at cs@rcfltd.com.
  • Shareholders are urged to register their email address with the RTA and ensure their bank account details are updated in their demat account for dividend credit.
  • The Company will email a soft copy of the TDS certificate post-payment. TDS credit can be viewed in Form 168 on the income tax e-filing portal.
  • Rule 203 of the Income Tax Rules, 2026, allows for TDS credit to be transferred to the actual assessee upon providing a declaration by the record date.

Disclaimer

The communication is not tax advice. Shareholders should consult tax professionals for their specific tax matters.

Annexures

The document includes sample formats for:

  • Annexure 1: Declaration of exemption from TDS for certain entities (e.g., Mutual Funds, Insurance Companies, AIFs).
  • Annexure 2: Information required under Rule 217(2) of Income-tax Rules, 2026 (for non-residents without PAN).
  • Annexure 3: Declaration regarding Tax Residency and Beneficial Ownership of shares (for non-residents claiming DTAA benefits).

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