Ceigall India Limited has issued a communication to its shareholders regarding the Tax Deduction at Source (TDS) on dividend payouts for the financial year 2025-26. The company outlined the applicable tax rates and the necessary documentation required from shareholders, distinguishing between resident and non-resident individuals and entities, to ensure compliance with the Income-tax Act, 2025.
Dividend Tax Deduction for FY2025-26
Ceigall India Limited has informed its shareholders about the Tax Deduction at Source (TDS) requirements on dividend payments for the financial year 2025-26. This follows the Board’s recommendation for a final dividend of Rs. 0.50/- per equity share, subject to shareholder approval at the 24th Annual General Meeting scheduled for September 29, 2026.
Resident Shareholders
For resident individual shareholders, no tax will be deducted if the total dividend paid during the Tax Year 2026-27 does not exceed Rs. 10,000/-. For other resident shareholders, the tax deduction rate depends on their PAN status and the availability of a lower/nil tax deduction certificate. Shareholders are required to submit documents such as a valid PAN, Form 121 for individuals with dividend income exceeding Rs. 10,000, or other specific declarations and documentary evidence for entities like LIC, GIC, Business Trusts, Government bodies, RBI, Mutual Funds, and Alternative Investment Funds (AIFs) to avail nil tax deduction.
Non-Resident Shareholders
Non-resident shareholders will be subject to tax deductions based on their category. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) will face a 20% deduction or the applicable tax treaty rate, whichever is more beneficial. Alternative Investment Fund – Category III located in International Financial Services Centres will have a 10% deduction rate. Other non-resident shareholders, except those residing in Notified Jurisdictional Areas, will be taxed at 20%. All non-resident shareholders are required to provide a copy of their PAN card (if available), a Tax Residency Certificate for the Tax Year 2026-27, and potentially other documents like digital Form 41 or self-declarations to claim beneficial tax treaty rates.
Documentation and Submission Deadlines
Shareholders must ensure their bank account details are updated in their demat accounts for electronic dividend credit. Various forms and documents, including Form 121, Form 41, Tax Residency Certificates, and self-declarations, are required to be uploaded on the provided link (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) on or before Monday, September 21, 2026. The company reserves the right to apply the applicable higher tax rate if documents are incomplete or discrepancies are found. Shareholders are advised to consult their tax advisors for specific implications.
Source: BSE
