AGI Greenpac Limited has issued a detailed communication to its shareholders regarding the deduction of tax at source (TDS) on dividends for the financial year 2025-26. The company has outlined the process and required documentation for claiming exemptions or lower tax rates. This communication is crucial for members to ensure correct TDS application on their dividend income, subject to member approval at the upcoming AGM.
AGI Greenpac Communicates Dividend TDS Rules
AGI Greenpac Limited has sent a comprehensive communication to its shareholders detailing the procedures and documentation required for claiming exemption from tax deduction at source (TDS) on the final dividend for the financial year 2025-26. This announcement aligns with the company’s commitment to transparency and compliance with regulations, ensuring shareholders are well-informed about the tax implications of their dividend income.
Key Dates and Procedures
The recommended dividend of ₹7/- per equity share is subject to approval at the 66th Annual General Meeting (AGM) scheduled for Tuesday, 22nd September 2026. The Register of Members and Share Transfer Books will be closed from Wednesday, 16th September 2026, to Tuesday, 22nd September 2026, inclusive. Dividend payments will be made to members registered as of Tuesday, 15th September 2026.
TDS Provisions and Documentation
In accordance with the Income Tax Act, 2025, dividends are taxable. The company is required to deduct tax at source at prescribed rates. The communication provides a detailed summary of applicable TDS provisions for both Resident Members and Non-Resident Members. Specific requirements include,
- For Resident Members: No TDS for dividend up to ₹10,000 for individuals; 10% TDS for amounts exceeding ₹10,000 with valid PAN; 20% TDS for non-linked PAN/Aadhaar or without PAN. Specific forms like Form 121, Certificates under Section 395, and self-declarations are outlined for various exemptions and lower rates.
- For Non-Resident Members: A standard TDS rate of 20% applies, with potential benefits from Double Tax Avoidance Agreements (DTAA). Detailed documentation, including PAN, Tax Residency Certificate, and specific forms like Form 41, is required to avail DTAA benefits.
All required documents must be submitted online via specified links by Tuesday, 15th September 2026, to enable the company to determine and apply the appropriate TDS rate. The company reserves the right to reject incomplete or discrepant documentation.
Important Notes for Shareholders
Shareholders are advised to ensure their PAN and Aadhaar are linked as prescribed. In case of non-compliance or missing details, tax may be deducted at a higher rate, and shareholders may need to file their tax returns to claim refunds. The company emphasizes that this communication is a summary and shareholders should consult their own tax advisors for specific advice.
Source: BSE
