Mafatlal Industries500264Dividend news update

Interim dividend of Re.1.00 per share declared; record date Nov 13, 2026, TDS on dividend explained

Board declared an Interim Dividend of Re.1.00/- per equity share (Face Value Rs.2/-) for the tax year 2026-27.

By ScoutQuest · Wed 4 Nov 2026, 7:53 PM IST · 3 min read

Interim Dividend Per Share: Interim Dividend of Re.1.00/- per equity share
Face Value: Face Value Rs.2/-
Record Date: Friday, November 13, 2026

What was announced

A meeting of the Board of Directors held on 4th November 2026 declared an Interim Dividend of Re.1.00/- per equity share of Face Value of Rs.2/- each for the Tax year 2026-27.
The dividend will be paid to shareholders holding equity shares in electronic or physical form, after determining who is eligible, based on the record date of Friday, November 13, 2026.
The update to the exchange is an intimation that an email explaining tax deduction on dividend has been sent to shareholders whose email addresses are registered with the company or the depositories.

Why tax is deducted at source

Dividend paid by a company after 1st April 2020 is taxable in the hands of the shareholders. So the company deducts tax at source (TDS) before paying the dividend and deposits it with the Central Government. The rate depends on whether the shareholder is a resident or non-resident and on the documents submitted.

Resident shareholders

Standard rate of TDS is 10%. A valid PAN should be updated with the depository (for demat holdings) or with the Registrar and Transfer Agent, KFin Technologies Limited (for physical holdings).
No tax is deducted if the dividend income of a resident individual for TY 2026-27 does not exceed ₹ 10,000/-. If later dividend payments in the same year push the total above ₹ 10,000/-, tax will be deducted from the subsequent payment on the current as well as the earlier dividend amount.
Resident individuals can also submit Form 121 for nil deduction, if the prescribed conditions are met.
Where PAN is missing or invalid, tax is deducted at the higher rate of 20%.

Non-resident shareholders

TDS is 20% (plus applicable surcharge and cess), or the tax treaty rate, whichever is lower.
To get the treaty rate, documents are required: PAN copy (or information under Rule 217(2)), a self-attested Tax Residency Certificate valid for the record date, electronically shared Form 41 for TY 2026-27, and a self-declaration confirming no Permanent Establishment in India.
If these documents are not provided, TDS is deducted at 20% (plus applicable surcharge and cess).
Foreign Institutional Investors and Foreign Portfolio Investors need to give a self-attested copy of their SEBI registration certificate.

Where to send documents, and by when

Documents have to be uploaded with KFin at the link given in the communication, or emailed to the address mentioned there.
No communication on tax determination or deduction will be considered after November 13, 2026, so that the company can work out the correct TDS rate in time.

Other points shareholders may note

Quoting PAN is mandatory where tax is deductible on dividend; failing to quote it can attract a penalty of ₹ 10,000/-.
The company will issue a TDS certificate in Form 131, and the tax credit can be reviewed in Form 168 (Annual Information Statement) once updated.
If tax is deducted at a higher rate because documents were not received, the shareholder can still claim a refund of the excess tax when update the income tax return.

The company has stated that the communication is for general information and is not legal or tax advice, and that shareholders should consult their own tax consultant on their specific situation.

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