Gaja Alternative Asset Management Limited has announced an interim dividend of Rs. 0.50 per equity share for the financial year 2026-27. Shareholders will receive this dividend on November 4, 2026. The company has provided detailed information regarding Tax Deduction at Source (TDS) on dividend payouts, outlining various scenarios for resident and non-resident shareholders based on their documentation and status.
Gaja Capital Declares Interim Dividend
The Board of Directors of Gaja Alternative Asset Management Limited, in their meeting held on November 4, 2026, declared an interim dividend of Rs. 0.50 per equity share. This dividend pertains to the financial year 2026-27. The company has communicated this to its shareholders via an email, also detailing the process for tax deduction at source (TDS) on this dividend payout.
Tax Deduction at Source (TDS) on Dividend
The communication elaborates on the withholding tax rates applicable to the dividend payout as per the Income-tax Act, 2025. The rate of withholding tax varies based on the residential status of the shareholder and the documents submitted. For resident individual shareholders, no tax will be deducted if the total dividend paid during the Tax Year 2026-27 does not exceed INR 10,000.
Resident Shareholders
For resident shareholders (other than individuals receiving less than INR 10,000 dividend), several scenarios are outlined:
- 10% TDS is applicable if a valid PAN is updated with the Depository Participant or RTA.
- 20% TDS applies if the PAN is no/invalid or not updated, and no exemption is sought.
- Lower or nil tax deduction certificates issued by the Income Tax Department can also lead to adjusted TDS rates.
Specific provisions exist for nil tax deduction on dividend payments to resident shareholders who provide requisite documents, including:
- Individuals with dividend income over INR 10,000 furnishing Form 121.
- Shareholders like LIC, GIC, Business Trusts (REIT, InVIT) not covered under Section 393(1) of the Act.
- Entities like Government, RBI, Mutual Funds, and corporations established by Central Act covered under Section 393(5).
- Category I and II Alternative Investment Funds (AIFs).
- Other entities exempt under Section 393(6) of the Act.
Non-Resident Shareholders
For non-resident shareholders, tax is deductible at source as follows:
- 20% (plus applicable surcharge and cess) or tax treaty rate, whichever is beneficial, for Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs). This requires a self-declaration, Tax Residency certificate, and digital Form 41.
- 10% (plus applicable surcharge and cess) for Alternative Investment Funds (AIFs) Category III located in International Financial Services Centre.
- 20% (plus applicable surcharge and cess) or tax treaty rate, whichever is beneficial, for other Non-resident shareholders not in a Notified Jurisdictional Area. This also requires a self-declaration, Tax Residency certificate, digital Form 41, and potentially other evidence for beneficial treaty rates.
- 30% for Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area.
- NIL for Sovereign Wealth Funds and Pension funds notified under the Act.
Important Notes for Shareholders
- Shareholders are urged to update their KYC data with the Registrar & Share Transfer Agent (RTA), MUFG Intime India Private Limited, for seamless communication and remittances.
- A soft copy of the TDS certificate will be issued via email post dividend payment.
- Relevant documents for TDS rate determination must be uploaded on the provided link by November 12, 2026. Documents received after this date will not be considered.
- Shareholders are advised to consult their tax advisors for specific actions.
Source: BSE
