Thyrocare Technologies Limited has issued a communication to its shareholders regarding the Tax Deduction at Source (TDS) on the final dividend recommended for the financial year ended March 31, 2026. The dividend, subject to shareholder approval at the AGM on June 30, 2026, will attract TDS as per the Income Tax Act. The company outlines applicable rates and necessary documentation for both resident and non-resident shareholders to ensure correct tax deduction.
Thyrocare Technologies Announces Dividend TDS Details
Thyrocare Technologies Limited has released an important update for its shareholders concerning the Tax Deduction at Source (TDS) applicable to the final dividend recommended for the financial year ended March 31, 2026. This dividend is set to be proposed for approval at the Annual General Meeting (AGM) scheduled for Tuesday, June 30, 2026. The record date for determining eligible shareholders is Tuesday, June 23, 2026.
Dividend and Taxability
The recommended final dividend of Rs. 7.00/- per equity share is in addition to the interim dividend of Rs. 7.00/- per equity share already disbursed. As per the Indian Income Tax Act, dividends are taxable in the hands of shareholders. Consequently, Thyrocare Technologies is mandated to deduct tax at source at applicable rates before distributing the dividend. The dividend approved at the AGM will be taxable for the Tax Year 2026-27.
Resident Shareholders: TDS Requirements
For resident shareholders, the applicable TDS rate is generally 10% if the Permanent Account Number (PAN) is provided. Shareholders are advised to ensure their PAN and residential status are correctly updated with depositories or the Company’s Registrar and Transfer Agent. For resident individual shareholders, TDS is waived if the aggregate dividend distributed during Tax Year 2026-27 does not exceed Rs. 10,000/-.
Shareholders whose PAN is not updated or is invalid are subject to a 20% TDS rate. It is imperative to link PAN with Aadhaar as per Section 262 of the Act to avoid higher deduction rates. Additionally, shareholders can submit Form 121 (with a self-attested PAN card copy) or a NIL/Lower withholding tax certificate obtained from the tax authority to facilitate appropriate tax deduction.
Specific Exemptions for Resident Shareholders
Certain entities are exempt from TDS:
- An Insurance Company as specified under Section 393(4) requires a self-declaration along with PAN and registration certification.
- Mutual Funds need a self-declaration regarding income eligibility for exemption under Section 11, along with PAN and SEBI registration.
- Alternative Investment Funds (AIFs) established in India/incorporated in India require a similar self-declaration and SEBI registration.
- New Pension System Trusts need to declare their NPS trust status and eligibility for exemption under Section 11, along with PAN and registration.
- Corporations established by or under the Central Act governed by section 393 (5) of the Act must provide a certificate of registration indicating their tax-exempt status.
Non-Resident Shareholders: TDS Provisions
Non-resident shareholders are subject to different TDS regulations:
- Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs): A TDS rate of 20% (plus applicable surcharge and cess) applies, requiring a self-attested copy of their SEBI Registration certificate.
- Other Non-resident Shareholders: Also subject to 20% (plus applicable surcharge and cess), with a requirement to update PAN, legal entity status, and residential status.
Double Taxation Avoidance Agreement (DTAA) Benefits for Non-Residents
Non-resident shareholders may opt to be governed by the Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence if it offers more beneficial terms. To avail these benefits, shareholders must provide:
- A self-attested copy of their PAN card (or details if PAN is unavailable).
- A self-attested copy of their Tax Residency Certificate (TRC) for Tax Year April 1, 2026, to March 31, 2027.
- An electronically filed Form 41, valid for the period April 2026 to March 2027.
- A self-declaration confirming eligibility for treaty benefits and beneficial ownership.
For shareholders who are tax residents of Singapore, specific evidence demonstrating the non-applicability of Article 24-Limitation of Relief under the India-Singapore DTAA is required. The Company reserves the right to review submitted documents before applying beneficial DTAA rates.
Submission of Documents and Deadlines
All required documents must be submitted via email to [email protected] or uploaded on the RTA MUFG Intime India Private Limited portal by 6:00 P.M. on Friday, June 26, 2026. No communication regarding tax determination or deduction will be entertained after this date. For joint shareholders, the first-named shareholder must submit the documents.
Important Notes and Disclaimers
Shareholders are reminded that if required details are not provided by the deadline, tax will be deducted at a higher rate. In such cases, shareholders can claim a credit or refund by filing their income tax return. The Company is not liable for taxes deducted at a higher rate due to non-submission of timely information. Shareholders should ensure their bank account details are updated for timely dividend credit.
This communication is for informational purposes and should not be treated as tax advice. Shareholders are strongly advised to consult a tax professional for advice related to their tax matters.
Source: BSE
