Samvardhana Motherson International Limited has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on the final dividend for the financial year 2025-26. The dividend, recommended at Rs. 0.25 per equity share, will be paid after the 39th AGM on July 30, 2026. Shareholders must submit necessary declarations and documents by July 14, 2026, to ensure correct TDS application based on their residency status and provided documentation.
Dividend Tax Information for Shareholders
Samvardhana Motherson International Limited is providing essential information to its shareholders concerning the tax implications of the final dividend for the financial year 2025-26. This communication addresses the deduction of tax at source (TDS) applicable to the dividend payment.
Dividend Recommendation and Payment
The Board of Directors has recommended a Final Dividend of Re. 0.25 (Twenty-Five Paise only) per equity share for the financial year ended March 31, 2026. This recommendation is subject to approval at the 39th Annual General Meeting (AGM) scheduled for July 30, 2026. The dividend will be paid or dispatched after the conclusion of the AGM, in compliance with the Companies Act, 2013.
Taxation of Dividends
In accordance with the Income-tax Act, 2025, dividends declared and paid are taxable for shareholders in the Tax Year 2026-27 (FY 2026-27). The Company is required to deduct TDS at applicable rates on dividend payments. The TDS rate will vary based on the shareholder’s residential status and the documents submitted.
Resident Shareholders: TDS Requirements
For Resident Individual Shareholders:
- Valid PAN: A TDS rate of 10% applies. If the aggregate dividend paid/payable for FY 2026-27 does not exceed Rs. 10,000, no TDS will be deducted. Shareholders are urged to update their PAN with depositories or the Company’s Registrar and Transfer Agent (RTA) – KFin Technologies Limited.
- No/Invalid PAN: A TDS rate of 20% applies. Shareholders must update their PAN, email ID, and mobile number via the website https://ris.kfintech.com/form15/forms.aspx?q=0 before July 14, 2026, 17:00 Hours (IST) to avail the 10% rate.
- PAN not linked with Aadhaar: A TDS rate of 20% applies if PAN is not linked with Aadhaar as required under section 262(6).
- Submission of Form 121: Resident individual shareholders must submit a copy of their valid PAN along with a declaration at https://ris.kfintech.com/form15 in Form No. 121. Failure to comply may result in the rejection of forms.
Other Resident Categories (Nil/Lower Deduction Certificate, Mutual Funds, Insurance Companies, etc.):
- Shareholders with a lower/NIL deduction certificate under Section 395 of the IT Act must submit a copy of the valid PAN and the certificate.
- Mutual Funds, Insurance Companies, and other specified entities must submit a self-declaration and relevant registration/exemption certificates as applicable.
Non-Resident Shareholders: TDS Requirements
Non-resident members can opt to be governed by the provisions of the Double Taxation Avoidance Agreement (DTAA) if more beneficial. The standard TDS rate for non-residents, including FIIs/FPIs, is 20% (plus applicable surcharge and cess).
- To avail Tax Treaty benefits: Shareholders must submit a copy of their Indian Tax Identification Number (PAN), a valid Tax Residency Certificate (TRC) for FY 2026-27, electronically generated Form 10F, and a self-declaration as per Annexure C.
- For Flls and FPIs, a self-attested copy of the SEBI registration certificate is also required.
- Non-Resident Shareholders in Notified Jurisdictional Areas: A TDS rate of 30% applies.
- Alternative Investment Funds (AIF) and Foreign Portfolio Investors (FPIs) – Category I: A TDS rate of 10% (plus applicable surcharge and cess) applies with a valid PAN and supporting documentation.
- Sovereign Wealth Funds and Pension Funds, Subsidiary of Abu Dhabi Investment Authority (ADIA): A TDS rate of Nil applies with the submission of specific documentation and self-declarations as per the IT Act.
Important Deadlines and Procedures
All documents must be uploaded as a single PDF file on the portal of M/s. KFin Technologies Limited (RTA) at https://ris.kfintech.com/form15/forms.aspx?q=0 by July 14, 2026, 17:00 Hours (IST). Alternatively, physical documents can be sent to the RTA’s address. Any communication or documents received after this deadline will not be considered. Shareholders are advised to ensure all submitted documents are self-attested and complete to avoid TDS at the maximum applicable rate.
For any further queries, shareholders can contact KFintech at [email protected]. Shareholders are also advised to consult their own tax consultant for specific tax implications.
Source: BSE
