India Glycols Limited has issued a formal communication regarding the deduction of Tax at Source (TDS) on the interim dividend declared for the Financial Year 2025-26. The Board declared an interim dividend of Rs. 7.50 per Equity Share. Shareholders must ensure their PAN and KYC details are updated by the Record Date of March 23, 2026, to ensure the correct TDS rates are applied, as non-compliance will result in higher tax deductions.
Interim Dividend Declaration Details
India Glycols Limited has informed shareholders that the Board of Directors, in a meeting held on March 17, 2026, declared an interim dividend of Rs. 7.50 per Equity Share (150% on a face value of Rs. 5/-) for the Financial Year 2025-26. The Record Date for determining eligible shareholders is fixed as Monday, March 23, 2026.
Mandatory TDS Compliance Requirements
Pursuant to the Income Tax Act, the company is mandated to deduct Tax at Source (TDS) at the time of dividend payment, as dividends paid post-April 1, 2020, are taxable in the hands of members. Shareholders must adhere to specific documentation requirements based on their residency status by the deadline of March 23, 2026.
For Resident Individuals
- Standard TDS Rate: 10% if a valid Permanent Account Number (PAN) is registered.
- Non-PAN/Inoperative PAN: TDS will be deducted at 20% under Section 206AA of the Act.
- Exemption Threshold: No tax is deducted if the total dividend received does not exceed Rs. 10,000/- during the Financial Year, or upon submission of valid Form 15G/15H, provided all eligibility criteria are met.
- Aadhaar Update Note: Failure to link Aadhaar with PAN will render the PAN inoperative, leading to a higher TDS rate of 20%.
For Resident Non-Individuals
No TDS will be deducted if the entity submits the required self-declaration and supporting documents (such as PAN card and registration certificates) demonstrating exemption under relevant sections, including those applicable to Insurance Companies, Mutual Funds, and Alternative Investment Funds (AIF).
For Non-Resident Members
- Standard TDS Rate: Taxes shall be withheld at 20% (plus applicable surcharge and cess) as per Section 195 of the Act.
- Treaty Benefits: Non-resident members can opt for a lower/Nil withholding rate as per the applicable Double Tax Avoidance Agreement (DTAA), provided they submit mandatory documents including a PAN copy (if available), a Tax Residency Certificate (TRC), and self-declaration in Form 10F.
- Notified Jurisdictional Area: For members from Notified Jurisdictional Areas, the TDS rate will be 30%.
- FIIs/FPIs: Taxes shall be withheld at 20% or the DTAA rate, whichever is beneficial, provided they furnish PAN and a Self-Declaration in Annexure-12.
General Provisions and Next Steps
Shareholders are strongly advised to ensure that their bank account details (IFSC and KYC) are updated with their Depository Participant or the Company’s RTA, as all dividend payments will now be remitted only through electronic mode. The deadline for submitting all required TDS-related documents to the Company or the Registrar (M/s MCS Share Transfer Agent Limited) is strictly the 23rd March, 2026. The company explicitly states that no communication regarding TDS will be considered after this date.
Source: BSE
