HIKAL Limited has issued a critical communication regarding the Tax Deduction at Source (TDS) applicable to its recently declared Interim Dividend of Re. 0.20/- per share for FY 2025-26. Shareholders must submit necessary documentation, including PAN details or tax exemption forms (15G/15H), by the deadline of February 18, 2026. Failure to provide documentation will result in mandatory TDS deduction at prescribed rates.
Interim Dividend and Record Date Announcement
HIKAL LIMITED announced that its Board of Directors declared an Interim Dividend of Re. 0.20/- (10%) per Equity Share with a face value of Rs. 2/- for the Financial Year 2025-26. The payment of this dividend is scheduled to be completed on or before March 12, 2026. The specified record date for determining the eligible shareholders is the close of business on February 17, 2026.
Mandatory TDS Requirements for Resident Shareholders
As dividend income is taxable in the hands of shareholders following amendments effective April 1, 2020, the Company is required to withhold tax (WHT) at source. The applicable rates for Resident Shareholders are categorized based on PAN status:
- If a Valid PAN is updated, the withholding tax rate is 10%. (No TDS if dividend does not exceed Rs. 10,000/-).
- If No PAN or Invalid PAN is registered, the withholding tax rate is increased to 20%.
- Shareholders wishing to claim a lower/nil deduction certificate under Section 197 must submit the certificate from the Income Tax Authority on or before February 18, 2026.
Tax Exemption Submissions for Residents
Resident shareholders who qualify for Nil TDS must submit the relevant forms electronically to [email protected] on or before February 18, 2026. These include:
- Submission of Form 15G or 15H, fulfilling specified conditions.
- Shareholders covered under Section 194, 196, or 197A (e.g., Government bodies, specific funds) must provide documentary evidence and a self-declaration along with a self-attested copy of their PAN.
Tax Implications for Non-Resident Shareholders
Non-Resident Shareholders must also submit required documents by February 18, 2026, to avail of beneficial tax treaty rates. Otherwise, the default withholding tax rate will be 20% (plus applicable surcharge and cess).
To benefit from a lower tax treaty rate, non-residents must provide:
- A self-attested copy of the Tax Residency Certificate (“TRC”) covering the payment period (2025-26) and translated/notarized if necessary.
- A self-attested copy of the PAN card or a declaration as per Rule 37BC.
- Electronically furnished Form 10F.
Action Required and Final Deadlines
All shareholders are urged to update their bank account details immediately, especially those holding shares in physical form, by contacting the Company’s RTA, MUFG Intime India Private Limited. The absolute deadline for submitting all TDS/tax exemption documentation to the dedicated email address ([email protected]) is Wednesday, February 18, 2026. The Company stresses that no communication regarding tax determination will be entertained after this date.
The Company noted that the communication summarizes tax laws and advises shareholders to consult their personal tax advisors for comprehensive advice.
Source: BSE
