RailTel Corporation of India has declared its Second Interim Dividend for FY 2025-26 at 10% (Re 1/- per share), payable on Tuesday, March 24, 2026. The Record Date has been fixed for Friday, March 13, 2026. Shareholders must submit necessary tax exemption/lower deduction documents via email by 11:59 p.m. IST on March 16, 2026, to ensure correct Tax Deducted at Source (TDS) application.
2nd Interim Dividend Declaration Details
RailTel Corporation of India Ltd. has formally announced the declaration of its Second Interim Dividend for the Financial Year 2025-26. This dividend was approved by the Board of Directors in their meeting held on March 9, 2026.
- Dividend Rate: 10% of paid-up share capital, equivalent to Re 1/- per equity share.
- Record Date: Friday, March 13, 2026. Payment will be made only to members holding shares as of this date.
- Payment Date: The dividend will be paid on Tuesday, March 24, 2026.
Furthermore, the company confirms it will exclusively use electronic modes of payment for the dividend, as approved by the Reserve Bank of India, effective from November 19, 2025. Shareholders are urged to update their bank details with their respective depositories.
Mandatory TDS Submission Requirements
As dividend income is taxable, the Company is required to withhold Tax Deducted at Source (TDS). Shareholders must provide documentation by the strict deadline of 11:59 p.m. IST on March 16, 2026, to claim any exemptions or lower deduction rates. Submissions must be sent via email to [email protected]/[email protected].
Resident Shareholders (A)
For resident shareholders with a valid PAN, TDS will be deducted at 10% under Section 194 of the IT Act.
TDS will be deducted at a higher rate of 20% if:
- A valid PAN is not available or is invalid/inoperative, as per Section 206AA of the IT Act.
- The PAN has become inoperative due to failure to link with Aadhaar.
No TDS will be deducted if shareholders provide:
- Valid Form 15G or Form 15H (if no tax liability).
- A valid Certificate for lower/Nil deduction under Section 197.
- Appropriate self-declarations and documentation for specified entities like Insurance Companies, Mutual Funds, Sovereign entities, or Alternate Investment Funds (AIFs) claiming exemption under relevant sections.
Note: No tax will be deducted if the aggregate dividend distributed to a resident individual does not exceed Rs. 10,000/- for the financial year.
Non-Resident Shareholders (B)
Non-resident shareholders (including FIIs/FPIs) are generally subject to TDS at 20% (plus surcharge and cess) under Section 195 or 196D, subject to Double Tax Avoidance Agreements (DTAA).
To avail of beneficial DTAA rates or exemption, non-resident shareholders must submit comprehensive documentation by the deadline, including:
- Self-attested copy of PAN (or prescribed details if PAN is unavailable).
- Self-attested copy of a Tax Residency Certificate valid for FY 2025-26.
- Mandatory filing of Form 10F online (if claiming treaty benefit).
Lower TDS rates may apply upon submission of a Lower deduction certificate under Section 197 or 195(3), or documentation proving exemption under laws like The United Nations (Privileges and Immunities) Act 1947.
Final Compliance Instructions
Shareholders must complete or update their Residential Status, PAN, and Category with their respective depositories promptly. Documents submitted after the March 16, 2026 deadline will not be considered for determining the tax to be withheld for this dividend payment.
All communications and documents must be clear; password-protected files require the password in the same email. Shareholders are advised to consult their own tax consultant for specific implications.
Source: BSE
