Ratnamani Metals & Tubes Ltd. has issued a communication regarding Tax Deduction at Source (TDS) on dividend payments for the Financial Year 2026-27. The company emphasizes the importance of shareholders updating their PAN, email, mobile number, and bank details to ensure accurate tax withholding as per Income Tax Act provisions. The announcement details various TDS rates applicable to different shareholder categories and outlines the required documentation for claiming lower or nil tax deduction.
Dividend TDS for FY 2026-27: Key Information for Shareholders
Ratnamani Metals & Tubes Limited has informed its shareholders about the applicable Tax Deduction at Source (TDS) provisions for dividend payments during the Financial Year 2026-27. The company stressed the necessity for shareholders to ensure their details, including PAN, email address, mobile number, and bank account information, are up-to-date with the company or its Registrar and Transfer Agent (RTA) to facilitate correct tax withholding.
Understanding TDS Applicability
As per the Income Tax Act, 2025, the company is mandated to deduct tax at source on dividend payments. For resident individual shareholders, no TDS will be deducted if the total dividend income for the Financial Year 2026-27 does not exceed ₹10,000. The rates of TDS will vary based on the shareholder’s category, residential status, and the documents submitted.
Documentation for Tax Benefits
Shareholders seeking to claim lower or nil TDS rates are required to submit specific documents. This includes:
- For Resident Individuals with dividend income exceeding ₹10,000: Submission of Form No. 121.
- For specific entities (e.g., Insurance Companies, LIC, GIC, Business Trusts): A self-declaration confirming non-applicability of Section 393(1) of the Income Tax Act, 2025, along with supporting documentary evidence and a PAN card copy.
- For Government entities, Mutual Funds, and corporations established by Central Act: A self-declaration and documentary evidence substantiating the applicability of Section 393(5) of the Income Tax Act, 2025, along with a PAN card copy.
- For Alternative Investment Funds (AIFs – Category I & II): A self-declaration confirming exemption under Schedule V to Section 11 of the Income Tax Act, 2025, and a copy of their SEBI registration certificate.
- For entities exempt under Section 393(6): A self-declaration, documentary evidence, and a copy of the lower tax withholding certificate obtained from the Income Tax Department.
Non-Resident Shareholders
Non-resident shareholders must provide specific documents to avail beneficial tax treaty rates or reduced TDS rates. These typically include:
- Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs): Copy of PAN card (if available), self-declaration, and Tax Residency Certificate for FY 2026-27.
- Alternative Investment Fund (Category III) in IFSC: Copy of PAN card (if available), self-declaration, and documentary evidence.
- Other Non-resident Shareholders: Copy of PAN card (if available), Tax Residency Certificate, and potentially a self-declaration for non-existence of a permanent establishment in India.
Shareholders are urged to submit all required documents by August 3, 2026, to the designated portal to ensure their tax status is correctly assessed for the dividend payment.
Updating Shareholder Details
Shareholders are strongly encouraged to update their PAN, email address, and bank account details. This can be done through their Depository Participant for dematerialized shares or with the RTA for physical shares. For physical shares, shareholders need to submit Form ISR-1, a self-attested PAN card copy, and a cancelled cheque leaf.
The company has also provided contact information for its Registrar and Transfer Agent, MUFG Intime India Private Limited, for any clarifications.
Source: BSE
