Navin Fluorine International Limited has issued a communication to its shareholders regarding the tax deduction at source (TDS) on dividend income. Effective from April 1, 2020, dividend income is taxable. The company will deduct tax at source as per the Finance Act, 2020, with rates varying based on shareholder residency and submitted documentation. Shareholders are advised to refer to the enclosed details for specific requirements and exemptions.
Navin Fluorine Clarifies Dividend Tax Implications
Navin Fluorine International Limited has formally communicated to its shareholders the implications of tax deduction at source (TDS) on dividend payments. This clarification is in line with the Finance Act, 2020, which mandates that dividend income is taxable in the hands of shareholders, effective April 1, 2020.
TDS Procedures and Rates
The company will be deducting tax at source at the time of dividend distribution or payment. The TDS rate is subject to change and will depend on the shareholder’s residential status and the documentation provided to the company, as per the applicable provisions of the Income Tax Act. Shareholders are urged to review the detailed tables provided, which outline various categories of shareholders, applicable tax deduction rates, and the required documentation for exemptions or specific treatments.
Important Dates and Shareholder Actions
The Board of Directors declared an interim dividend of ₹8/- per equity share for the Financial Year 2026-27. The record date for determining eligibility for this dividend is November 05, 2026, with the interim dividend to be paid on or after November 26, 2026. Shareholders are reminded that the submission of necessary documents to determine the correct TDS rate is crucial and must be completed by November 05, 2026. Failure to provide required documentation may result in tax deduction at a higher rate, with the option to claim refunds later via income tax returns.
Documentation Requirements
Specific documents, such as a valid PAN card, Tax Residency Certificate (for non-residents), and various self-declarations or exemption certificates, are required depending on the shareholder’s category. The company has provided links and references to download necessary forms, including Form 121, and has detailed the implications of non-compliance, such as the mandatory quoting of PAN under penalty provisions.
Source: BSE
