Comfort Fincap Limited has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on its final dividend. The company will deduct TDS at applicable rates based on shareholders’ residential status and provided documentation, as per the Income-tax Act, 2025. Shareholders are advised to submit necessary forms and PAN details to avail lower or nil TDS rates. The dividend will be paid after TDS deduction, with a certificate provided to shareholders.
Comfort Fincap Clarifies Dividend TDS Process
Comfort Fincap Limited has formally communicated to its shareholders the procedures and implications of tax deduction at source (TDS) on the final dividend recommended by the Board. This communication is in line with the provisions of the Income-tax Act, 2025, which mandates dividend income to be taxable in the hands of shareholders from April 1, 2026.
TDS Rates and Shareholder Categories
The company will adhere to deducting TDS at prescribed rates at the time of dividend payment, should it be declared at the Annual General Meeting (AGM). The applicable TDS rate will depend on the shareholder’s residential status and the completeness of submitted documentation. For resident shareholders, a general TDS rate of 10% applies if a valid PAN is furnished. A higher rate of 20% will be applied if PAN is not provided, is inoperative, or if the shareholder falls under provisions requiring higher deduction.
Specific provisions are in place for resident individuals where TDS may not be deducted if the total dividend payable does not exceed Rs. 10,000 per year, or if a duly filled and signed Form 121 is submitted along with a valid PAN by eligible individuals (e.g., those above 60 years). For resident shareholders seeking NIL or lower TDS, specific documents must be submitted, including declarations for entities like Insurance Companies, Government bodies, and Alternative Investment Funds.
Non-Resident Shareholder Requirements
Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), will be subject to TDS at the rate of 20% or the applicable tax treaty rate, whichever is lower. To avail of tax treaty benefits, non-residents must provide documents such as a self-attested copy of their Indian PAN (or a self-declaration if none is allotted), a Tax Residency Certificate (TRC) for Tax Year 2026-27, and Form 41 generated through the Income Tax E-filing Portal. A self-declaration regarding eligibility for treaty benefits and the absence of a permanent establishment/fixed base in India is also required.
Dividend Payment and Documentation Submission
The final dividend, if approved, will be paid after the deduction of TDS as determined by the submitted documents. Shareholders are encouraged to submit all necessary forms and documentation to the Company’s Registrar and Transfer Agent, Bigshare Services Private Limited, by the record date, which is September 14, 2026. The company emphasizes that timely and accurate submission of documents is crucial for ensuring correct TDS deduction. Shareholders unable to provide the required documents may face higher TDS rates, and any refund must be claimed through their income-tax return.
General Instructions for Shareholders
Comfort Fincap advises shareholders to check the company’s website (www.comfortfincap.com) and the RTA’s website (www.bigshareonline.com) for forms and detailed instructions. The company explicitly states that this communication is not tax advice, and shareholders should consult with tax professionals for guidance on their specific tax matters. The dividend will be paid through electronic mode, and shareholders are urged to update their bank account and KYC details promptly.
Source: BSE
