Samvardhana Motherson International Limited has communicated details regarding the deduction of tax (TDS) on the declared Interim Dividend of Re. 0.35 per share for FY 2025-26. Shareholders must submit necessary declarations and documents, such as valid PAN details or Tax Residency Certificates, by the deadline of Thursday, March 26, 2026, 1700 Hours (IST), to ensure correct TDS rates are applied.
Interim Dividend Announcement and Tax Implications
Samvardhana Motherson International Limited has notified shareholders concerning the Interim Dividend declared by the Board of Directors on Thursday, March 19, 2026. The dividend amount is Re. 0.35 (Thirty-Five Paise only) per equity share (face value Re. 1/- each) for the Financial Year (‘FY’) 2025-26.
The payment date is set within 30 days of declaration, relating to equity shares held as of the Record Date, i.e., March 27, 2026.
As per the Income Tax Act, 1961 (‘the IT Act’), the dividend income is taxable in the hands of shareholders. Consequently, the Company is required to deduct Tax at Source (‘TDS’) at applicable rates, which vary based on residential status and submitted documentation.
TDS Requirements for Resident Shareholders
The applicable TDS rates for resident shareholders are detailed below, contingent upon the provision of documentation:
- Valid PAN: 10% TDS. Note that TDS will not be deducted if the aggregate dividend paid/payable for FY 2025-26 does not exceed Rs. 10,000 for Resident Individual Shareholders.
- No / Invalid PAN: 20% TDS.
- PAN not linked with Aadhaar (Inoperative PAN): 20% TDS.
Shareholders are strongly requested to update their PAN information with the depositories or the Registrar and Transfer Agent (KFin Technologies Limited) and register their PAN/Email ID/Mobile Number on the dedicated portal by Thursday, March 26, 2026, 1700 Hours (IST) to qualify for the 10% rate.
For those eligible, Form 15G/Form 15H submission is required for a Nil TDS deduction, and submission of a valid lower/NIL withholding tax certificate under Section 197 of the IT Act also qualifies for a Nil deduction rate.
TDS Requirements for Non-Resident Shareholders
Non-resident members have the option to be governed by the Double Taxation Avoidance Agreement (‘Tax Treaty’) if it is more beneficial.
- General Rate: 20% (plus applicable surcharge and cess).
- Tax Treaty Rate: Shareholders can apply for a lower rate by submitting mandatory documents, including a Tax Residency Certificate (TRC) valid for FY 2025-26 and an electronically generated Form 10F.
Specific, lower rates apply to entities such as Alternative Investment Fund Category III and Foreign Portfolio Investors (FPIs) – Category I, both subject to a 10% rate upon fulfilling documentation requirements.
Submission Deadline and Important Notes
All required documents (as applicable) must be uploaded as a single PDF file on the M/s. KFintech portal or sent physically to reach the RTA before Thursday, March 26, 2026, 1700 Hours (IST).
Shareholders are warned that any communication received after this deadline concerning tax rate determination or deduction shall not be considered. Furthermore, all submitted documents must be self-attested. If information is found to be incomplete or inaccurate, tax will be deducted at the maximum applicable rate.
Shareholders are advised to consult their own tax consultant regarding specific tax implications, as the information provided is for general purposes only.
Source: BSE
