RPG Life Sciences Limited has communicated with shareholders regarding tax deduction at source (TDS) and withholding tax procedures for the recommended final dividend for financial year 2025-26.
Dividend Declaration
The Board of Directors, at its meeting held on Wednesday, April 29, 2026, recommended payment of a final dividend of ₹24 per share (300% on the face value of ₹8 each) for FY 2025-26. This dividend payment is subject to approval by shareholders at the ensuing Annual General Meeting (AGM).
Tax Treatment
The dividend for FY 2025-26 to be paid in FY 2026-27 is taxable in the hands of shareholders. The company is required to deduct/withhold taxes at prescribed rates, which vary depending on the residential status of shareholders and documentation submitted.
Documentation Requirements
Shareholders are requested to ensure their details are complete/updated with their Depository Participant (for demat holdings) or with MUFG Intime India Private Limited (for physical holdings), including:
- Valid Permanent Account Number (PAN)
- Residential status (Resident or Non-Resident)
- Category of account as per PAN
- Email/postal address
- Bank account details
TDS Procedures for Resident Shareholders
- TDS will be deducted at 10% under Section 393(1) [Table Sr No. 7] and 393(4) [Table Sr No. 10] of the Income Tax Act, 2025
- No TDS for individuals if aggregate dividend during FY 2026-27 does not exceed ₹10,000
- PAN status (PAN-Aadhaar linkage) will be verified through government utility
- Exemption documents required for various categories:
- Form 121 for eligible Resident Individual shareholders
- Documentary evidence for Insurance companies
- Documentary evidence for Mutual Funds
- Self-declaration for Alternative Investment Funds (AIF)
- Declaration for entities exempt under Section 11
- Documentary evidence for corporations exempt from income-tax
- Documentary evidence for beneficial ownership cases
- Declaration under Rule 203 for intermediaries/stock brokers (to be submitted within 4 days from record date)
Withholding Tax Procedures for Non-Resident Shareholders
- Tax withheld at 20% (plus surcharge and cess) under Section 393(2) [Table Sr No. 17 and 15]
- Option to claim DTAA benefits requires submission of:
- Copy of PAN (if available)
- Self-attested copy of Tax Residency Certificate (TRC)
- e-filed Form 41
- Self-declaration of no taxable presence in India
- For FIIs and FPIs: 20% withholding tax or DTAA rate, whichever is more beneficial
- Company retains discretion on applying DTAA rates and will not apply Most Favored Nation Clause
Multiple Accounts
For shareholders with multiple accounts under different status/category with single PAN, the higher applicable tax rate will be applied to their entire holding.
Submission Deadline
All required documents must be submitted on or before July 3, 2026 to MUFG Intime India Private Limited at https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html.
Additional Information
- Documents accepted only by post or from registered email ID
- For joint shareholders, the first-named shareholder must furnish documents
- Shareholders can claim credit/refund through income tax return filing if higher TDS deducted
- Company not liable for post-submission date requests
- Shareholders responsible for indemnifying company against any income tax demands arising from misrepresentation
- Institutional members may submit through custodians registered with NSDL for tax services
The communication includes annexures available for download from the company website under "Dividend for FY 25-26" tab: Annexure-1 (FORM 121), Annexure-2 (Declaration of category of Resident shareholder), Annexure-3 (Declaration of Tax Residency by Non-Resident shareholder), and Annexure-4 (Declaration under Rule 203).
Disclaimer
The information provided does not constitute legal or tax advice, and investors are advised to consult their own tax consultants for specific tax implications.
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