Company Disclosure: Tax Deduction on Interim Dividend

Dividend Declaration Details

  • The Board of Directors declared an Interim Dividend of ₹3 per equity share (150% on face value of ₹2 each) for financial year 2026-27 at their meeting held on July 28, 2026.
  • Record date for dividend eligibility: Monday, August 3, 2026 (based on Register of Members/Beneficial Owners list from NSDL and CDSL).
  • Dividend payment date: On or before Wednesday, August 26, 2026.

Tax Deduction Requirements

  • Dividend is taxable in the hands of shareholders pursuant to Income-tax Act, 2025.
  • Company is required to deduct TDS on the interim dividend amount at prescribed rates.
  • TDS rates vary depending on residential status of shareholders and documents submitted.

TDS Rates for Resident Shareholders

  • 10% TDS for resident shareholders with valid PAN (updated with depository participant or registrar).
  • NIL TDS if dividend distributed to resident individual shareholder does not exceed ₹10,000 during TY 2026-27.
  • NIL TDS for shareholders exempted through circular/notification with attested PAN copy and documentary evidence.
  • NIL TDS for eligible shareholders submitting Form 12I.
  • Rates as per order for those obtaining lower/NIL withholding tax certificate from Income Tax authorities.
  • NIL TDS for insurance companies (with self-declaration of beneficial interest, PAN copy, and IRDAI registration).
  • NIL TDS for corporations exempt from income-tax (with documentary evidence under section 393(5)).
  • NIL TDS for mutual funds (with self-declaration, PAN copy, and SEBI registration).
  • NIL TDS for Category I or Category II Alternative Investment Funds (with self-declaration under Notification No. 51/2015, PAN copy, and SEBI registration).
  • 10% TDS for Category III AIF.

Important Notes for Resident Shareholders

  • Valid PAN recording mandatory for registered Folio/DP id-Client Id. Without valid PAN, tax deducted at 20% under Section 397(2).
  • PAN must be linked to Aadhaar as per Section 262. TDS deducted at 20% if PAN not linked to Aadhaar.
  • For shareholders holding shares under multiple accounts with single PAN, higher tax rate applicable to the status will be considered on entire holding.

TDS Rates for Non-Resident Shareholders

  • 20% (plus applicable surcharge and cess) or Tax Treaty rate whichever is lower.
  • Non-residents may opt for Tax Treaty rate upon submission of: PAN copy (if any), self-attested Tax Residency Certificate (TRC) with translation if not English, Form No. 41 filed online, and self-declaration confirming beneficial ownership and eligibility.
  • Foreign Institutional Investors/FPIs: 20% (plus surcharge/cess) or Tax Treaty rate whichever lower, with similar documentation requirements.
  • Rates as per order for those obtaining lower/NIL withholding tax certificate from Income Tax authorities.

Important Notes for Non-Resident Shareholders

  • TDS deducted at 20% (plus surcharge/cess) if required documents not provided.
  • Company not obligated to apply Tax Treaty rates - depends on completeness of documents submitted.
  • Similar multiple account rule applies as for residents.
  • Non-residents receiving dividend in Indian bank accounts must update complete residential address, email ID, and mobile number with DP/registrar.
  • Form 41 must be submitted online on Income Tax Portal.

Documentation Deadline

  • All documents required for TDS determination must be submitted to Company/Registrar at email id: csgexemptforms2627@in.mpms.mufg.com or via online portal https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html
  • Deadline: Wednesday, August 5, 2026, by 11:59 PM IST.
  • No communications/documents considered after this deadline.

Additional Procedures

  • Registered shareholders (broking firms/custodians/DPs) who receive dividend on behalf of clients must update signed declaration under rule 203 of Income-tax Rules, 2026 to transfer TDS credit to actual beneficiaries by August 5, 2026.
  • Shareholders can claim refund through income tax returns if tax deducted at higher rate due to missing documentation.

Supporting Documents

The filing includes detailed formats for:

  • Form No. 12I: Declaration under section 393(6) for receipt of incomes without deduction of tax
  • Self-declaration form for Mutual Funds and Alternative Investment Funds claiming exemption
  • Draft letter for non-resident shareholders certifying tax residency and DTAA benefits

Disclaimer

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