RCF announced the declaration of an interim dividend of ₹1/- per Equity Share for FY 2025-26, payable to shareholders of record as of February 20, 2026. The communication details the Tax Deducted at Source (TDS) implications for both resident and non-resident shareholders as per the Income Tax Act, 1961. Shareholders must submit necessary documentation, such as PAN details or Form 15G/15H/10F, by February 20, 2026, to ensure correct tax application.
Interim Dividend Announcement and Record Date
Rashtriya Chemicals and Fertilizers Limited (RCF) has formally announced the declaration of an interim dividend of ₹1/- per Equity Share (10% on the face value of ₹10/-) for the Financial Year 2025-26. This dividend payment is scheduled for shareholders whose names appear on the Company’s register as of the closure of the record date, set for Friday, February 20, 2026.
TDS Implications on Dividend Payments
As dividends paid after April 1, 2020, are taxable in the hands of shareholders, the Company is mandated to deduct Tax at Source (TDS) at applicable rates. The applicable TDS rate depends on the shareholder’s residential status and the documentation provided.
Resident Shareholders
For Resident Individuals:
- If total dividend income exceeds ₹10,000, the TDS rate is 10%, provided a valid PAN is available.
- A 20% TDS rate applies in other cases where PAN is not provided, is unavailable, or is inoperative (not linked with Aadhaar).
- Shareholders below 60 years (Form 15G) or above 60 years (Form 15H) are exempt (NIL TDS) if their total dividend income for FY 2025-26 is less than ₹10,000, provided the prescribed forms are duly signed and submitted.
Resident – Other Than Individuals
Indian Commercial Banks/Financial Institutions are subject to a 10% TDS rate. Insurance Companies (LIC, GIC, etc.) and Government entities exempt under Section 196 are subject to NIL TDS upon submission of requisite declarations.
Non-resident Shareholders
Tax is required to be withheld at 20% plus applicable surcharge and cess on the dividend amount. Non-residents, including FPIs, may opt for the lower Tax Treaty rate under the Double Taxation Avoidance Agreement (DTAA), provided they submit specific documentation, including a Copy of PAN (if any), a valid Tax Residency Certificate (TRC), and electronic Form 10F, along with a prescribed Self-declaration.
If the required DTAA documents are not provided, the standard 20% rate (plus surcharge and cess) will be applied.
Procedure for Document Submission
All required documents, including Forms 15G/15H/10F, must be downloaded, completed, signed, and uploaded to the Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited’s portal. The deadline for this submission to ensure correct TDS determination is Friday, February 20, 2026. Incomplete or unsigned forms will not be accepted.
Shareholders can view the credited TDS in their Form 26AS after the dividend payment date via the income tax e-filing portal. Soft copies of the TDS certificate will be emailed to shareholders’ registered email IDs post-payment.
Source: BSE
