Skipper Limited has issued a detailed communication regarding the deduction of tax at source (TDS) on dividends for the Financial Year 2025-26. The company outlined the applicable rates and documentation requirements for both resident and non-resident shareholders to ensure correct tax withholding. Shareholders are advised to submit necessary documents by September 8, 2026, to avail of beneficial tax rates or exemptions.
Dividend Tax Deduction Explained
Skipper Limited has provided a comprehensive update on the tax implications for shareholders concerning dividend payments for the Financial Year 2025-26. The communication emphasizes the mandatory deduction of tax at source (TDS) as per the Income Tax Act, 2025, and its subsequent rules.
Key Dates and Requirements
Shareholders are informed that the dividend payment, subject to approval at the Annual General Meeting scheduled for September 15, 2026, will be subject to TDS. To ensure accurate tax withholding and to claim any applicable exemptions or lower rates, shareholders must submit required documentation by the cut-off date of September 8, 2026. This includes details such as PAN, residential status, and other necessary declarations, which should be uploaded via the provided links.
Resident Shareholders
For resident individuals, no tax will be deducted if the total dividend does not exceed ₹10,000 for FY 2026-27, or if they furnish Form 121 with all eligibility conditions met. Resident non-individuals may also be exempt under specific conditions, requiring self-declarations and relevant certificates.
Non-Resident Shareholders
Non-resident shareholders are subject to withholding tax at 20% (plus surcharge and cess) unless they provide a certificate for lower/nil withholding under Section 395 of the Act. They may also opt to be governed by Double Tax Avoidance Agreements (DTAA) by providing specific documentation, such as a Tax Residency Certificate (TRC) and e-filed Form 41.
General Information and Cut-off
The company will rely on details available on the Record Date (September 8, 2026) for TDS purposes. Shareholders are urged to ensure their KYC details are updated with depositories or the RTA. Any documents submitted after the specified cut-off period may not be considered. In cases where TDS is deducted at a higher rate due to incomplete information, shareholders may file their return of income to claim a refund.
Source: BSE
