Date: 11th August, 2026

Dividend Declaration

  • The Board of Directors, at its meeting held on 15th May 2026, recommended a dividend of ₹2.75 per equity share of face value ₹2 each for the financial year ended 31st March 2026.
  • This dividend payment is subject to approval by shareholders at the ensuing Annual General Meeting (AGM) in 2026.
  • The record date for determining eligibility is 28th August 2026.
  • Dividend will be paid in electronic form to eligible shareholders.

Tax Deduction at Source (TDS) Procedures

For Resident Shareholders

  • TDS will be deducted @ 10% under Section 393(1) [Table: S.No.7] read with section 393(4) [Table Sr. no. 10] of the Income-tax Act, 2025.
  • No TDS will be deducted if the aggregate dividend during the financial year does not exceed ₹10,000.
  • No TDS will be deducted if a shareholder provides a valid Form 12-I.
  • Lower/NIL TDS deduction requires submission of self-declaration and supporting documents for specific categories:
  • Insurance companies: Declaration per provisions of 393(4) [Table: S.No.10] with registration certificate and PAN.
  • Mutual Funds: Declaration for exemption under Schedule VII (Table: Sl. No. 20 or 21) of section 11 with registration documents and PAN.
  • Alternative Investment Fund (AIF): Declaration for exemption under Schedule V [Table: Sl. No. 1] of section 11, established as Category I or II AIF under SEBI regulations, with registration documents and PAN.
  • New Pension System Trust: Declaration with supporting evidence and PAN.
  • Other shareholders: Declaration with supporting evidence and PAN.
  • Shareholders with valid certificate under section 395(1) for lower/nil deduction or exemption certificate.

For Non-Resident Shareholders

  • TDS will be withheld @ 20% (plus applicable surcharge and cess) under Section 393(2) [Table Sl. No 17] read with section 207(1) [Table Sl. No. 1].
  • To avail beneficial DTAA rates, non-resident shareholders must provide:
  • Self-attested copy of PAN card (if allotted)
  • Self-attested copy of Tax Residency Certificate (TRC)
  • Electronically generated Form 41 from income tax portal
  • Self-declaration meeting DTAA eligibility and beneficial ownership requirements
  • For FPIs: Self-attested copy of SEBI registration certificate
  • For Singapore tax residents: Evidence demonstrating non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA

Higher TDS Rates

  • 20% TDS under Section 397(2) for individual shareholders without PAN, invalid PAN, PAN not linked with Aadhar, or unregistered PAN details.

Summary of TDS Rates

  • NIL: Resident shareholders receiving dividend ≤ ₹10,000 or submitting Form 12-I with PAN
  • 10%: Other resident shareholders with PAN provided/available
  • 20%: Resident shareholders without PAN/not provided/not linked with Aadhar
  • Assessed rate: Non-resident shareholders based on documents submitted
  • 20% plus surcharge/cess: Non-resident shareholders without required documents
  • Lower/NIL: With valid certificate under section 395(1)

Important Deadlines and Procedures

  • All exemption documents must be submitted on or before the cut-off date: Friday, 28th August 2026.
  • Documents can be uploaded with MAS Services Limited (RTA) at: https://masserv.com/investortax/investor25-26.asp
  • Resident individual demat shareholders may submit Form 12-I through NSDL/CDSL Tax Service Platform.

Bank Account and Details Update

  • All dividend payments will be made only in electronic mode (no physical warrants/cheques/drafts) per SEBI Notification No. SEBI/LADNRO/GN/2025/273 dated November 18, 2025.
  • Demat shareholders: Update core banking account number, 9-digit MICR Code, and 11-digit IFSC Code with depository participants.
  • Physical shareholders: Communicate bank details to the RTA.
  • Failure to update bank details will result in non-payment of dividend.
  • Physical shareholders without PAN, contact details, mobile number, bank details, or specimen signature must furnish these details entirely to lodge grievances or receive services from RTA.

RTA Contact Information

MAS Services Limited

Unit: Sterling Tools Limited

T-34, IInd Floor, Okhla Industrial Area Phase-II

New Delhi- 110020

Tel: +91 011 26387281-83

E-mail: investor@masserv.com

Document Links Provided

  • Form 12-I download link
  • FAQ's on Form 12-I
  • Self-declaration form for non-resident shareholders
  • FAQ's on Form 41

Disclaimer

The information provided does not constitute legal or tax advice, and investors should consult their own tax consultants for specific implications.