Patanjali Foods Limited has issued a communication to its shareholders regarding the process of Tax Deducted at Source (TDS) on interim dividends declared. The company is clarifying withholding tax procedures for both resident and non-resident shareholders, including requirements for PAN, residential status, and applicable tax rates based on income tax provisions. Shareholders are urged to ensure their details are updated to avoid higher TDS rates.
Communication on Dividend TDS
Patanjali Foods Limited has informed its shareholders about the procedures concerning Tax Deducted at Source (TDS) on the interim dividends recently declared by the Board of Directors. This communication follows the declaration of the 3rd Interim Dividend of Rs. 1.50/- per equity share for the financial year 2025-26 and the 1st Interim Dividend of Rs. 0.80/- per equity share for the financial year 2026-27.
TDS Procedures for Shareholders
The company is providing details on the withholding tax process, which is applicable as per the Income-tax Act. Shareholders are categorized into Resident and Non-Resident, with different TDS implications and documentation requirements. All shareholders are requested to ensure that their details, including Permanent Account Number (PAN), residential status, and category, are accurately updated in their demat accounts or with the company’s registrar.
Resident Shareholders
For resident shareholders, TDS will be deducted at the rate of 10% on the dividend amount, provided a valid PAN is mandatorily submitted. In the absence of a valid PAN, a higher TDS rate of 20% will apply. For resident individuals, TDS will not be deducted if the aggregate dividend for FY 2026-27 does not exceed Rs. 10,000/-. Specific documentary evidence and declarations are required for certain categories of resident shareholders (other than individuals) to claim Nil or lower TDS rates.
Non-Resident Shareholders
Non-resident shareholders will face TDS at a rate of 20% (plus applicable surcharge and cess), or the rate prescribed under a Double Taxation Avoidance Agreement (DTAA), whichever is lower. To avail beneficial DTAA rates, non-residents must submit documents including a PAN, Tax Residency Certificate (TRC), and Form 41. Failure to provide the necessary documentation will result in TDS at the standard 20% rate.
Action Required by Shareholders
Shareholders are strongly advised to submit the required documents and update their details with the company’s Registrar and Transfer Agent (RTA), Sarthak Global Limited, by Friday, August 21, 2026. No communication regarding tax determination or deduction will be entertained after this date. The company emphasizes that if tax is deducted at a higher rate due to missing details, shareholders may file their income tax return to claim a refund, but no claim will lie against the company for such deductions.
Source: BSE
