Cochin Shipyard has communicated details regarding Tax Deduction at Source (TDS) on its 02nd interim dividend for the financial year 2025-26. The dividend, declared on January 28, 2026, amounts to ₹3.50 per equity share. The company has provided guidelines for resident and non-resident shareholders regarding applicable tax rates and necessary documentation for potential exemptions or lower deductions.
Interim Dividend Announcement
Cochin Shipyard Limited (CSL) announced its 02nd interim dividend for the financial year 2025-26 following a board meeting on January 28, 2026. The declared dividend is ₹3.50 (70%) per equity share, with a face value of ₹5 each.
Dividend Payment and Tax Deduction
The dividend will be paid by February 26, 2026, subject to the deduction of tax at source (TDS). Eligibility for the dividend is determined by membership in the company as of the record date, February 03, 2026.
Tax Implications for Resident Shareholders
For resident shareholders, TDS will not apply to individuals if the total dividend distributed during the financial year 2025-26 does not exceed ₹10,000.
Tax exemptions are available if shareholders provide Form 15G (for individuals other than companies or firms) or Form 15H (for individuals above 60 years), provided eligibility conditions are met. These forms are available on Cochin Shipyard’s website.
Otherwise, TDS will be deducted at a rate of 10% under Section 194 of the Income Tax Act, 1961, unless an exemption applies.
Linking PAN with Aadhar is mandatory. If PAN is not linked or is invalid, TDS will be deducted at 20% as per Section 206AA of the Income Tax Act, 1961.
Tax Implications for Non-Resident Shareholders
For non-resident shareholders, tax is required to be deducted at source according to Sections 195 and 196D of the Income Tax Act, 1961, at applicable rates. The tax will be deducted at source at 20% (plus applicable surcharge and cess) on the dividend amount.
Required Document Submission
Shareholders eligible for exemptions or lower deductions must submit required documents by February 03, 2026, via the portal of MUFG Intime India Private Limited. This includes self-attested copies of relevant documents.
Non-Resident Shareholders should submit necessary documents to claim Double Taxation Avoidance Agreement (DTAA) benefits by February 03, 2026.
Source: BSE
