Datamatics Global Services Limited has issued a communication to its shareholders detailing the process and requirements for Tax Deduction at Source (TDS) on its final dividend. The notice clarifies the applicable tax rates for resident and non-resident shareholders, the documentation needed to claim exemptions or lower withholding tax rates, and the due dates for submission. It also provides links to forms and further information on the company’s investor relations website.
Datamatics Communicates Dividend Tax Procedures
Datamatics Global Services Limited has provided shareholders with essential information regarding the Tax Deduction at Source (TDS) applicable to the company’s final dividend. This communication, dated August 18, 2026, aims to clarify the tax implications as per the Income Tax Act, 2025 (ITA 2025).
Dividend and Taxability
The Board of Directors recommended a final dividend of Rs. 5/- per equity share for the financial year ended March 31, 2026. If approved at the Annual General Meeting, this dividend will be subject to TDS. Shareholders are reminded that dividend income is taxable. The company will deduct tax at source at applicable rates unless specific exemptions or lower deduction certificates are provided.
Tax Deduction for Resident Shareholders
For resident individual shareholders, no tax will be deducted if the total dividend paid during Tax Year (‘TY’) 2026-27 does not exceed Rs. 10,000/-. For other resident shareholders, the withholding tax rate varies based on their PAN status. A 10% rate applies if a valid PAN is updated with the Depository Participant or RTA. However, if the PAN is invalid or not updated, a higher rate of 20% will be applied as per Section 397(2) of the ITA 2025.
Shareholders can claim nil tax deduction if they furnish a Lower/Nil Tax Deduction Certificate issued by the Income Tax Department. Additionally, individuals receiving over ₹10,000/- and specific entities like LIC, GIC, Business Trusts, and Alternative Investment Funds (AIFs) may be eligible for nil TDS by submitting required declarations and self-attestations.
Tax Deduction for Non-Resident Shareholders
Non-resident shareholders are subject to varying withholding tax rates depending on their category. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) will generally face a 20% rate, subject to applicable treaty rates. Alternative Investment Funds (Category III) located in International Financial Services Centres will have a 10% rate. Non-resident shareholders from Notified Jurisdictional Areas will face a 30% rate. Sovereign Wealth Funds and Pension Funds notified by the Central Government may be eligible for nil TDS.
Submission of Documents and Deadlines
Shareholders are urged to ensure their details such as Permanent Account Number (PAN), residential status, and category are updated with their Depository Participants. All requisite declarations and supporting documents must be submitted to the Company by September 11, 2026. Documents received after this date may not be considered for determining the appropriate TDS rate, and the company may deduct tax at the highest applicable rate.
The company also notes that beneficial tax treaty rates are subject to the completeness and satisfactory review of submitted documents. Shareholders are advised to consult their tax consultants for specific implications. Forms and declarations can be downloaded from the investor relations section of the Datamatics website.
Source: BSE
