Elecon Engineering has recommended a final dividend of Rs. 1.50 per share for the 2025-26 financial year. As the company prepares for the upcoming 66th Annual General Meeting, shareholders are notified of mandatory Tax Deduction at Source (TDS) requirements. To ensure correct tax processing, shareholders must submit relevant documentation, including PAN details linked to Aadhaar, by the deadline of June 12, 2026.
Dividend Payout Details
The Board of Directors has recommended a final dividend of Rs. 1.50 per equity share (representing 150% of the face value of Re. 1.00) for the 2025-26 fiscal year. This proposal is subject to approval by shareholders at the company’s 66th Annual General Meeting.
Tax Deduction at Source (TDS) Requirements
Under current tax laws, dividends are taxable, and the company is required to withhold tax at the time of distribution. The tax rate applied will depend on the shareholder’s residency status and the documentation provided:
- Resident Shareholders: A standard 10% TDS applies, though no tax is deducted for individuals receiving total dividends under Rs. 10,000 annually.
- Higher TDS Rates: A higher rate will be applied if the shareholder’s PAN is invalid or not linked with Aadhaar.
- Non-Resident Shareholders: A withholding tax of 20% (plus applicable surcharge and cess) applies, unless they opt for more beneficial rates under a Double Tax Avoidance Agreement (DTAA).
Action Required from Shareholders
To ensure proper tax determination, shareholders must submit all necessary declarations and supporting documents by June 12, 2026. Failure to provide complete documentation or the required PAN information may lead to the deduction of tax at higher rates. Shareholders should upload their documents via the company’s designated RTA portal or reach out via the official investor helpdesk email.
Compliance and Documentation
Specific forms are available for various shareholder categories, including Insurance Companies, Mutual Funds, Alternative Investment Funds (AIFs), and New Pension System Trusts. Shareholders are encouraged to verify their records, including bank account details, with their Depository Participant or the Registrar and Share Transfer Agent (RTA) to ensure the seamless credit of dividends.
Source: BSE
