Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) has issued an advisory to its shareholders regarding Tax Deducted at Source (TDS) on dividend payments. The communication outlines mandatory information requirements for shareholders to determine the correct TDS rate, including residential status, PAN, and category. Shareholders must update their details by August 17, 2026, to ensure accurate tax deduction and avoid higher rates. Specific forms and declarations are required for different shareholder categories.
Shareholder Advisory on Dividend Tax Deductions
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) has issued a critical communication to all its shareholders regarding the deduction of tax at source (TDS) on upcoming dividend payments. This advisory details the necessary procedures and documentation required from shareholders to enable the Company to accurately determine the appropriate TDS rate applicable to their dividend remittance. Shareholders are urged to take note of the deadlines and requirements to ensure compliance.
Key Information and Deadlines for Shareholders
To facilitate the correct determination of TDS, shareholders must ensure that the following mandatory information is updated with the Company’s Registrar and Transfer Agent (RTA) or their Depository Participant, as applicable, on or before August 17, 2026:
- Residential status (Resident or Non-Resident for FY 2026-27).
- Valid Permanent Account Number (PAN).
- For individual shareholders, Aadhaar number (in addition to PAN).
- Shareholder category (e.g., Mutual Fund, Insurance Company, Foreign Portfolio Investor, Individual, HUF, etc.).
- Email ID, Contact Number, and Address.
- Bank account details.
Failure to provide accurate and complete information by the deadline may result in the deduction of tax at higher rates. For resident individuals, TDS will not be deducted if the total dividend does not exceed Rs. 10,000 or if a duly filled and signed Form No.121 is submitted.
TDS Provisions and Documentation Requirements
The communication outlines specific TDS provisions and the required documentation for various shareholder categories. For Resident Shareholders, TDS will generally be at 10%, unless exemptions apply. Specific declarations and self-attested copies of registration certificates or relevant documents are required for categories like Insurance Companies, Mutual Funds, and AIFs to claim exemptions or lower TDS rates.
For Non-Resident Shareholders or Foreign Companies, tax is required to be withheld at 20% (plus applicable surcharge and cess). However, shareholders can avail beneficial rates under Double Taxation Avoidance Agreements (DTAA) by providing a self-attested copy of their PAN card, Tax Residency Certificate (TRC), and electronically filed Form 41. The submission of these documents is crucial for availing DTAA benefits. The Company will rely on the information available on record as of the record date.
Importance of PAN-Aadhaar Linking
It is imperative for shareholders to link their PAN with Aadhaar as per Section 262 of the Act. Failure to do so will result in the PAN being deemed invalid or inoperative, leading to a mandatory tax deduction at the rate of 20% as per Section 397(2) of the Act. The Company will use online functionalities of the Income Tax Department to determine the tax status.
Summary of Dividend Payment and TDS
The advisory provides a summary of how dividends will be paid after TDS:
- NIL TDS for resident individuals receiving up to Rs. 10,000 or who submit Form No.121 and a PAN card copy.
- 10% TDS for other resident shareholders with a valid PAN.
- 20% TDS for resident shareholders without a valid PAN or where PAN is not linked with Aadhaar.
- Beneficial DTAA rates for non-resident shareholders upon submission of required documents.
- 20% plus surcharge and cess for non-resident shareholders if documentation is not submitted.
Shareholders holding equity shares under multiple accounts with a single PAN should note that the highest applicable tax rate will be considered for their entire holding.
How to Submit Documents and Update Details
All necessary documents and declarations should be uploaded to the Registrar and Transfer Agent (RTA) KFin Technologies Limited at https://ris.kfintech.com/forms no later than August 17, 2026. The Company also advises shareholders to update their bank account details with their Depository Participant or RTA to ensure timely and electronic credit of dividends. The information provided is for general guidance, and shareholders are recommended to consult their tax advisors for personalized advice.
Source: BSE
