Acutaas Chemicals Limited has issued a communication to its shareholders regarding the deduction of tax at source on the final dividend for the financial year 2025-26. This notification, accompanying the Annual Report, details the process for withholding tax on dividends, including rates and necessary documentation for both resident and non-resident shareholders. The company emphasizes the importance of timely submission of required forms by September 15, 2026, to ensure accurate tax deductions.
Dividend Tax Information for Shareholders
Acutaas Chemicals Limited has provided shareholders with comprehensive details concerning the deduction of tax at source (TDS) on the final dividend for the financial year ended March 31, 2026. This communication, issued in line with SEBI regulations, aims to inform shareholders about the applicable tax provisions and the procedural requirements for dividend distribution.
Key Dates and Dividend Recommendation
The Board of Directors recommended a dividend of Rs. 2.50/- per equity share for FY 2025-26. This recommendation is subject to shareholder approval at the 19th Annual General Meeting scheduled for September 24, 2026. The dividend will be paid to shareholders of record as of September 17, 2026.
Tax Deduction at Source (TDS) Overview
Following the implementation of the Income-tax Act, 2025, dividend payments are taxable in the hands of shareholders. Acutaas Chemicals is thus mandated to deduct tax at source at the time of dividend payment. The communication outlines the TDS applicability for both resident and non-resident shareholders.
For Resident Shareholders
Tax will be deducted at 10% on the dividend amount if shareholders have provided a valid Permanent Account Number (PAN). A higher rate of 20% applies if PAN is not provided or not linked with Aadhaar. Resident individuals will not face TDS if the total dividend received does not exceed Rs. 10,000/- or if they submit Form 121 with necessary declarations and an exemption certificate. Specific documentation requirements are listed for resident non-individuals such as Insurance Companies, Mutual Funds, and AIFs.
For Non-Resident Shareholders
Non-resident shareholders will be subject to withholding tax at the rate of 20%, plus applicable surcharge and cess. They have the option to avail benefits under Double Taxation Avoidance Agreements (DTAA) if more beneficial, provided they submit necessary documentation, including a Tax Residency Certificate (TRC) and Form 41. A rate of 35% plus surcharge and cess applies to non-residents declaring a permanent establishment in India.
Submission of Documents and Deadlines
Shareholders are requested to submit the required tax-related documents, including Form 121 and declarations, by September 15, 2026. These documents can be uploaded via a designated online portal or sent via email to [email protected]. Failure to submit timely documentation may result in a higher TDS rate, with the option to claim a refund through income tax returns.
Updation of Details
Shareholders are advised to ensure their bank account details and KYC are updated with their depositories to facilitate direct credit of dividends. PAN, email addresses, and mobile numbers should also be updated with the company’s registrar and share transfer agent, MUFG Intime India Private Limited.
Important Notes
The company emphasizes that it is not obligated to apply beneficial Tax Treaty rates at the time of withholding tax, and this depends on the completeness and satisfactory review of submitted documents. Shareholders are advised to consult their tax professionals for personalized advice on tax implications.
Source: BSE
