Finolex Cables has announced a recommended dividend of ₹9 per equity share, representing 450% on a face value of ₹2, for the financial year ended March 31, 2026. This proposal is subject to shareholder approval at the upcoming 58th Annual General Meeting. The dividend, if approved, will be paid by October 27, 2026, to shareholders on record as of September 4, 2026. The communication also details tax implications and required documentation for shareholders.
Dividend Recommendation for FY26
The Board of Directors of Finolex Cables Limited, in its meeting held on May 28, 2026, has recommended a dividend of ₹9.00 per equity share. This represents a 450% payout on the face value of ₹2.00 per share for the financial year ending March 31, 2026. The dividend recommendation is contingent upon the approval of the shareholders at the 58th Annual General Meeting (AGM) of the Company.
Dividend Payout and Record Date
If approved at the AGM scheduled for September 28, 2026, the dividend will be credited or paid on or before October 27, 2026. The record date for determining the eligibility of shareholders for this dividend is September 4, 2026. Shareholders holding equity shares in electronic form will receive the dividend based on beneficial ownership data from NSDL and CDSL, while those with physical shares will receive it based on details provided by the share transfer agent, KFin Technologies Limited.
Tax Deduction at Source (TDS) on Dividends
As per the Income Tax Act, 1961, the dividend to be paid is taxable in the hands of the shareholders. Finolex Cables has provided detailed information regarding Tax Deduction at Source (TDS) on dividends. Shareholders are requested to ensure their details, including Valid Permanent Account Number (PAN) and residential status, are updated with KFin Technologies Limited or their depository participant to comply with TDS provisions.
Resident Shareholders: TDS Rates
For Resident Shareholders, tax will be deducted at source based on the aggregate dividend amount during the financial year:
- Aggregate dividend up to ₹10,000 during the TY: 0% TDS.
- Shareholders submitting a valid declaration in Form 121 (replacing Forms 15G and 15H) can also avail a 0% TDS rate, provided they meet the criteria.
- If PAN is not submitted, invalid, or not linked with Aadhaar, a TDS rate of 20%* will apply as per Section 397 of the Act.
- Mutual funds, insurance companies, National Pension Scheme Trust, and certain government-established corporations can receive a 0% TDS rate upon submission of specific documents as per Section 395 of the Act.
- For Other shareholders not covered above, a 10% TDS rate will be applicable.
*The Company will use online functionality for PAN verification; failure to link PAN with Aadhaar may result in higher tax deduction.
Non-Resident Shareholders: TDS and DTAA
Non-resident Shareholders will be subject to TDS as per Section 393(2) of the Act at the rates in force, generally 20% plus applicable surcharge and cess. However, non-residents have the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) if it is more beneficial. To claim DTAA benefits, non-resident shareholders must provide required documents and declarations as enclosed in Annexure – A. The deadline for submitting all required documents and declarations for both resident and non-resident shareholders is Friday, September 4, 2026.
Important Information for Shareholders
Shareholders are advised to ensure their PAN is updated and linked with Aadhaar to avoid higher TDS. The company will verify submitted documents and apply taxes accordingly. In case of higher TDS due to non-submission of documents within the timeline, shareholders may claim a refund in their income-tax return; the company will not be liable for such deductions. TDS certificates will be emailed to shareholders post dividend payment, and tax credit can be viewed on the Indian Income-tax Department’s portal.
The company clarifies that any income-tax demand arising from misrepresentation or omission of information by shareholders will be their responsibility. Further communication regarding the procedure for sharing/uploading documents will be sent individually through KFin Technologies Limited.
Source: BSE
