TDS note to shareholders on interim dividend of Rs. 4 per equity share
The company has emailed shareholders a note on tax deduction at source (TDS) on its interim dividend of Rs. 4/- per equity share (face value Rs.2/-) for FY 2026-27, declared on October 26, 2026.
By ScoutQuest · · 3 min read
- Interim Dividend Per Share
- Rs. 4/- per equity share
- Face Value
- Rs.2/-
- Document Submission Deadline
- October 30, 2026
The company has informed the exchanges about a letter it emailed to shareholders on the tax that will be deducted from the interim dividend declared for FY 2026-27. The Board declared the dividend at its meeting on October 26, 2026.
What shareholders are getting
- An interim dividend of Rs. 4/- per equity share of face value Rs.2/- each for the financial year 2026-27.
- The dividend will be paid after deduction of tax at source, because under the Income Tax Act, 2025 dividends are taxable in the hands of shareholders.
Tax rates for resident shareholders
- 10% where a valid PAN is registered.
- 20% where PAN is not available, not registered, invalid or inoperative. A PAN not linked with Aadhar is treated as inoperative.
- Nil for resident individuals whose total dividend from the company during FY 2026-27 does not exceed Rs. 10,000/.
- Nil where Form 121 is submitted and all eligibility conditions are met, or where a certificate for lower or nil withholding under Section 395(1) is provided.
- A fresh Form 121 must be submitted for the interim dividend received during 2026-27.
Tax rates for non-resident shareholders
- 20% plus applicable surcharge and cess, other than for Specified Funds.
- 10% plus applicable surcharge and cess for Specified Funds and for GDR holders who provide a self-attested PAN copy.
- Lower or nil rate where a certificate under Section 395(1) is submitted.
- A beneficial Double Tax Avoidance Treaty rate may be applied if the non-resident shareholder furnishes a PAN copy, a Tax Residency Certificate for April 2026 to March 2027, an electronically shared Form 41, a self-declaration on treaty eligibility and beneficial ownership, and, for FIIs and FPIs, the SEBI registration certificate. Shareholders who are tax residents of Singapore must also show that Article 24 (Limitation of Relief) of the India-Singapore treaty does not apply.
- The company states it is not obligated to apply beneficial treaty rates; this depends on its review of the documents submitted.
Deadline and how to submit
- Documents must be uploaded at https://ris.kfintech.com/form15 or emailed to einward.ris@kfintech.com on or before October 30, 2026. Documents received after this date will not be considered.
Other points to note
- Where a shareholder holds shares in multiple accounts under different status or category with a single PAN, the higher of the applicable tax rates will be applied on the entire holding.
- Where tax is deducted at a higher rate, the shareholder can still file a return of income and claim a refund, if eligible.
- Shareholders are asked to keep their bank account details updated in their demat accounts so the dividend is credited on time.
- Resident non-individuals such as insurance companies, mutual funds, Category I or II AIFs and NPS trusts can claim nil deduction by giving the specified self-declaration and documents.
The practical takeaway for a retail shareholder is the paperwork and the date: the tax rate applied depends on PAN status and on whether Form 121 or a lower/nil withholding certificate is submitted before the cut-off.
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More numbers
- Interim dividend per equity shareRs. 4/-
- Face value per equity shareRs.2/-
- TDS rate for resident shareholders with valid PAN10%
- TDS rate where PAN is missing or inoperative20%
- Dividend threshold for nil TDS for resident individualsRs. 10,000/
- Withholding tax rate for non-resident shareholders20%
- TDS rate for Specified Funds and GDR holders10%
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