Nava Limited has issued a notice detailing the tax deduction at source (TDS) procedures for its final dividend for FY 2025-26. Shareholders must ensure their PAN details are updated and submit necessary declarations by August 13, 2026, to avail lower withholding tax rates or exemptions. The company emphasizes electronic payment modes for dividend distribution.
Nava Limited Outlines Dividend Tax Procedures
Nava Limited has communicated important information to its shareholders regarding the tax deduction at source (TDS) on the proposed final dividend for the Financial Year 2025-26. The dividend, recommended at ₹5.50 per equity share, is subject to shareholder approval at the upcoming Annual General Meeting on August 14, 2026.
Shareholder Actions for TDS Compliance
To ensure smooth and compliant dividend distribution, shareholders are required to update crucial details with the company’s Registrar and Transfer Agent, KFin Technologies Limited (KFin), or their respective Depository Participant (DP). These include:
- A valid Permanent Account Number (PAN) linked with Aadhaar.
- Correct Residential Status (Resident or Non-Resident) for Tax Year 2026–27.
- Accurate Shareholder Category (e.g., Individual, HUF, Company).
- Complete Address, Email ID, and Mobile Number.
- Updated Bank account details (Bank Name, Branch, Account Number, and IFSC).
Physical shareholders must also provide a self-attested copy of their PAN card and a cancelled cheque or bank passbook/statement.
TDS Provisions and Exemptions
The company is mandated to deduct Tax at Source (TDS) on dividend payments as per the Income-tax Act, 2025. Shareholders seeking exemptions or lower withholding tax rates must upload declarations and documents to KFin by August 13, 2026.
For Resident Shareholders:
- Standard TDS Rate: 10% if a valid operative PAN is registered.
- Higher Rate: 20% if PAN is missing, invalid, or inoperative.
- Nil TDS Exemptions:
- Threshold Relief: No tax if aggregate dividend does not exceed ₹10,000 and paid electronically.
- Form 121 Submission: For individuals expecting total taxable income below the basic exemption threshold.
- Lower Withholding Certificate: Issued by the Income Tax Department.
- Institutional Investors: Must submit category declarations with PAN copies and registration certificates.
For Non-Resident Shareholders:
- TDS will be withheld at 20% (plus applicable surcharge and cess) or lower rates specified in a Certificate under Section 395.
- Beneficial Double Tax Avoidance Agreement (DTAA) rates can be availed by submitting required documents, including a Tax Residency Certificate (TRC).
Beneficial Ownership and Electronic Payments
A declaration for beneficial ownership (Rule 203) must be submitted by August 13, 2026, if the dividend income is assessable to a person other than the registered shareholder. Furthermore, in compliance with SEBI directives, all dividend payments to physical security holders will be processed exclusively through electronic mode, requiring updated PAN, bank details, and other essential information with the Company’s RTA.
Source: BSE
