This is a regulatory disclosure intimation sent to the shareholders of Sri Lotus Developers and Realty Limited and filed with the stock exchanges (BSE Limited and National Stock Exchange of India Limited) regarding the Tax Deducted at Source (TDS) applicability on the interim dividend declared by the company.

The Board of Directors, at their meeting held on September 01, 2026, recommended a first interim dividend of 30% for the financial year 2026-27. This translates to ₹0.30 per equity share, with each share having a face value of ₹1.

The company is obligated to deduct Income-tax at source (TDS) under Section 393 of the Income-tax Act, 2025. The rate of TDS depends on the residential status and PAN details of each shareholder. The key deadlines and procedures for shareholders are as follows:

For Resident Shareholders

  • TDS will be deducted at 10% for individuals holding a valid PAN that is linked with their Aadhaar.
  • No TDS will be deducted if the aggregate dividend paid during the tax year does not exceed ₹10,000, or if a valid Form No. 121 (erstwhile 15G/H) is submitted to the Registrar and Share Transfer Agent (RTA), KFin Technologies Limited, and is acceptable to the company.
  • If a PAN is not available, invalid, or inoperative (not linked to Aadhaar), TDS will be deducted at a higher rate of 20%.
  • Certain resident non-individual entities (e.g., mutual funds, insurance companies, government entities) are exempt from TDS under Sections 393(4) and 393(5) of the Act, provided they submit the required certificate of registration and self-declaration in the prescribed format to the RTA on or before September 11, 2026.

For Non-Resident Shareholders

  • TDS will be deducted as per the applicable rates in force under the Income-tax Act, 2025.
  • Non-resident shareholders can opt for a beneficial tax rate under the applicable Double Tax Avoidance Agreement (DTAA) by submitting specific documents to the RTA on or before September 11, 2026. Required documents include a self-attested PAN copy, a Tax Residency Certificate (TRC), a self-declaration in Form No. 41 (erstwhile Form-10F) filed electronically, a declaration of eligibility for DTAA benefits, a No Permanent Establishment (PE) declaration, and for FIIs/FPIs, a copy of the SEBI registration certificate.
  • The company explicitly states it is under no obligation to apply the beneficial DTAA rate if the submitted documents are incomplete or unsatisfactory.

General Provisions and Deadlines

  • A critical deadline of September 11, 2026, is set for the receipt of all relevant forms and declarations by the RTA, KFin Technologies Limited, at einward.ris@kfintech.com. No requests will be accepted after this date.
  • Shareholders must ensure their KYC details, including PAN, residential status, email address, mobile number, and correct bank account details (with MICR and IFSC codes), are updated with their Depository Participants (for demat holdings) or directly with the RTA (for physical holdings).
  • All dividend payments will be made exclusively in electronic mode.
  • Failure to update KYC/bank details will result in the dividend being withheld.
  • The company disclaims any liability for TDS deducted and clarifies that this communication is not tax advice, recommending shareholders consult a tax professional.

The letter is signed by Ankit Kumar Tater, Company Secretary and Compliance Officer (Membership No.: A57623).