eClerx Services Limited has issued a communication regarding the deduction of tax at source on its upcoming dividend. The final dividend of Re. 1/- per equity share, if approved, will be subject to TDS as per the Income Tax Act, 1961. Shareholders are required to provide updated PAN and residential status details to ensure correct tax deduction rates are applied. Specific forms and documentation are needed for claiming lower or nil TDS.
eClerx Announces Dividend Tax Rules
eClerx Services Limited has informed its shareholders about the implications of tax deduction at source (TDS) on the final dividend declared. The dividend of Re. 1/- per equity share, which is subject to shareholder approval at the 26th Annual General Meeting, will be paid on or after April 1, 2020, making it taxable in the hands of the shareholders. Consequently, the company is obligated to deduct tax at source at the time of payment.
Shareholder Responsibilities for TDS
To ensure accurate TDS application, shareholders are urged to provide complete and updated information regarding their Permanent Account Number (PAN), residential status (Resident or Non-Resident), and other relevant details. The company stated that TDS rates will vary based on the shareholder’s residential status and submitted documentation. For resident individuals, a 10% TDS will be applied, unless the total dividend paid/payable for FY 2026-27 does not exceed ₹10,000. The validity and linkage of PAN with Aadhaar are crucial for applying the correct rate.
Documentation for Non-Individuals and Non-Residents
For non-individual resident shareholders, NIL or lower tax may be deducted upon submission of self-certified documents, depending on their category (e.g., insurance companies, mutual funds, trusts). Non-resident shareholders will be subject to a withholding tax of 20% (plus surcharge and cess), with provisions for beneficial tax rates under Double Taxation Avoidance Agreements (DTAA). These shareholders must provide a PAN, Tax Residency Certificate (TRC), and a self-declaration (Form 41) to avail DTAA benefits.
Submission Deadlines and Procedures
Shareholders are required to upload the necessary documents by 5:00 p.m. on Thursday, August 20, 2026, via the Registrar and Transfer Agent’s (RTA) website at ris.kfintech.com/clientservices/investors/taxforms.aspx. Emails should also be sent to [email protected]. The company emphasizes that no communication regarding tax determination will be entertained after this deadline.
Alternative submission methods are available for specific shareholder categories, including through Depository Participants for resident individuals and custodians for resident non-individuals and non-resident investors.
Source: BSE
