Nature of the Disclosure

This is a regulatory disclosure and shareholder communication from Welspun Corp Limited regarding the deduction of Tax at Source (TDS) on the dividend recommended for the financial year ended 31st March 2026. The document outlines the applicable TDS provisions for both resident and non-resident shareholders and provides instructions for submitting necessary documents to avail of nil or lower TDS rates.

Key Quantitative Figures

  • The Board of Directors has recommended a dividend of 100% per share, i.e., Rs. 5 per Equity Share of face value Rs. 5 each.
  • For resident individuals, no TDS will be deducted if the total dividend paid during FY 2026-27 does not exceed Rs. 10,000.
  • The standard TDS rate for resident shareholders with a valid PAN is 10%.
  • The default TDS rate for resident shareholders without a valid PAN is 20%.
  • The default TDS rate for non-resident shareholders is 20% plus applicable surcharge and cess.

Dates of Action

  • Board Meeting Date: 21st May 2026 (dividend recommended).
  • Financial Year Ended: 31st March 2026.
  • Cut-off for Document Submission: 30th June 2026.
  • AGM Date: To be announced (dividend payment is subject to approval).
  • Record/Book Closure Dates: To be announced.

Parties Involved

  • Registrars & Transfer Agents: MUFG Intime India Private Limited.
  • Depositories: National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
  • Regulatory References: Income Tax Act, 2025; Sections 393, 397(2), 395(1), 159; Rules 203, 211, 217.

Purpose and Rationale

The purpose of this communication is to inform shareholders of the company's obligation to deduct TDS on the dividend payout as per the Income Tax Act, 2025, and to guide them on the procedures to follow to avoid higher deduction rates.

Detailed TDS Provisions

For Resident Shareholders

  • TDS Rate: 10% if PAN is provided and valid; 20% if PAN is not provided/invalid.
  • Exemptions:
  • Total dividend does not exceed Rs. 10,000 for the financial year.
  • Submission of Form 121 (for individuals) or a self-declaration (for specified non-individuals like Insurance Companies, Mutual Funds, AIFs, NPS Trust).
  • Submission of a certificate issued under Section 395(1) for nil/lower deduction.

For Non-Resident Shareholders

  • Default TDS Rate: 20% plus applicable surcharge and cess.
  • Lower/ Nil Rate: Can be applied if the shareholder provides:
  • A self-attested copy of PAN (or Annexure 3 details if no PAN).
  • A self-attested copy of a valid Tax Residency Certificate (TRC).
  • Form 41 filed online on the Income Tax portal.
  • A self-declaration of meeting treaty eligibility and beneficial ownership requirements (Annexure 5).
  • For FIIs/FPIs, a copy of the SEBI registration certificate.
  • The company is not obligated to apply DTAA benefits and will do so only upon satisfactory review of submitted documents.

For Shareholders with Multiple Accounts

If a shareholder holds shares under multiple accounts (different status/category) but with a single PAN, the higher applicable TDS rate will be applied to the entire holding.

Submission Process

  • Deadline: All required documents must be submitted on or before 30th June 2026.
  • Method: Documents are to be sent via email to CS_WCL@welspun.com and investor.helpdesk@in.mpms.mufg.com.
  • Online Portal: Shareholders can also submit forms through the RTA's dedicated link: https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html.
  • Consequence of Late Submission: Any communication received after 30th June 2026 will not be considered for determining the applicable TDS rate.

Additional Instructions for Shareholders

  • Shareholders are advised to update their bank account details and ensure KYC compliance in their demat accounts/physical folios to enable direct credit of dividends.
  • Resident individual shareholders can also submit Form 121 electronically through their Depository Participant (NSDL or CDSL).
  • Tax credit for deducted TDS can be viewed in Form 26AS on the TRACES portal or the Income Tax e-filing website.

Annexures Provided

The communication includes several annexures:

  • Annexure 1: Form 121 Part A (for resident individuals).
  • Annexure 2: Self-declaration format for specified resident non-individual entities.
  • Annexure 3: Format for information required from non-residents without a PAN.
  • Annexure 4: Form 41 (for non-residents claiming DTAA benefits).
  • Annexure 5: Self-declaration format for non-residents regarding tax residency and beneficial ownership.

Signature and Authority

The letter is signed by Kamal Rathi, Company Secretary (ACS-18182), for Welspun Corp Limited.