Century Plyboards (India) Limited has communicated its dividend policy and detailed the applicable Tax Deducted at Source (TDS) provisions for the financial year 2025-26. Shareholders will receive a dividend of Re. 1/- per equity share. The communication outlines specific TDS rates and documentation requirements for both resident and non-resident shareholders to claim exemptions or lower deductions, emphasizing the need for timely submission of forms by September 9, 2026.
Dividend Announcement and TDS Overview
Century Plyboards (India) Limited announced its recommended dividend payment for the financial year ended March 31, 2026, at its Board Meeting held on May 22, 2026. The dividend proposed is Re. 1/- per equity share of Re. 1/- each, subject to shareholder approval at the 45th Annual General Meeting scheduled for September 16, 2026. The record date for determining dividend entitlement is September 9, 2026.
In accordance with the provisions of the Income-tax Act, 2025, the Company is required to deduct tax at source (TDS) on dividend payments. This communication serves to summarize the applicable TDS provisions for various categories of shareholders, including Resident and Non-Resident Members, based on the submission of requisite documents.
TDS Provisions for Resident Members
For resident members, specific TDS rates and applicability conditions are outlined:
- Mutual Funds: TDS is Nil, applicable for funds registered with SEBI. An exemption certificate is required if details are not updated with the depository participant.
- The Government: TDS is Nil.
- Alternative Investment Funds (AIF): Applicable for Category I and II AIF registered with SEBI, with a 10% TDS rate. For Category III AIF IFSC, the rate is 10%, subject to specific conditions for units held by non-residents.
- National Pension System Trust: TDS is Nil.
- Insurance companies: TDS is Nil, applicable for companies registered under IRDAI.
- Resident Individuals: TDS is Nil if the aggregate dividend does not exceed INR 10,000/- or if Form 121 is submitted. Dividend should be paid other than cash.
- Eligible resident shareholders: TDS rate as per the Lower Deduction Certificate issued by the Income Tax Authority.
- Resident Shareholders not covered in above provisions: 10% if PAN is valid, 20% in the absence of PAN or invalid PAN.
For resident individual members, no TDS is deducted if the aggregate dividend does not exceed INR 10,000. If the dividend exceeds INR 10,000 and a valid PAN is held, the TDS is 10%. Without PAN or with an invalid PAN, it is 20%. Non-linking of PAN and Aadhaar also attracts a 20% TDS. A Nil TDS is applicable upon submission of Form No. 121, provided eligibility conditions are met. A lower/Nil withholding tax certificate obtained from the tax authority can also be submitted.
TDS Provisions for Non-Resident Members
For non-resident members:
- FII/FPI: 20% TDS, plus applicable surcharge and cess. A lower TDS rate may apply as per Double Taxation Avoidance Agreements (DTAA) with supporting documentation.
- Other Non-resident shareholders: 20% TDS, plus applicable surcharge and cess. Reduced rates are possible under DTAA with specific documents like valid PAN, TRC, and self-declarations.
- Category III AIF IFSC: 10% TDS, applicable for units held by non-residents. Surcharge and cess are additional.
- All non-resident shareholders: TDS rate as per the lower deduction certificate issued by the Income tax authority.
The Company’s application of beneficial DTAA rates is subject to a satisfactory review of submitted documents. For Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), TDS is deducted at 20% (plus surcharge and cess), which will not be reduced by DTAA rates or lower deduction orders.
Important Dates and Submission Requirements
All links and portals for submitting declarations and documents will remain active until September 9, 2026, and will be disabled thereafter. Shareholders are requested to submit the required documents once for the financial year (April 2026-March 2027), unless there is a change in their TDS status. Documents submitted before this communication will not be considered. Shareholders are advised to consult their tax advisors for specific implications.
For members holding shares under multiple accounts with a single PAN, the higher applicable tax rate will be considered for their entire holding. Scanned copies of tax relief documents (PAN, Forms 121, Form 41, Self-Declaration) are accepted via the provided link, but must be self-attested as “certified true copy of the original”. The Company reserves the right to reject documents found to be discrepant or incomplete.
KYC and Payment Requirements
Shareholders holding shares in dematerialized mode are advised to update their records with their depositories. Those holding shares in physical mode must furnish updated KYC details to the Company’s Registrar and Transfer Agent, Maheshwari Datamatics Private Limited. Dividend payments will be made electronically, and KYC details, including PAN (linked with Aadhaar), contact information, and bank account details, are mandatory. Failure to update KYC details may result in dividend withholding.
The Company will email a soft copy of the TDS certificate upon dividend payment. Shareholders can also view TDS credit in Form 168. This communication provides a summarized view of the law and does not replace professional tax advice.
Source: BSE
