Jubilant FoodWorks Limited has issued a crucial communication regarding Tax Deduction at Source (TDS) on dividends for the Financial Year 2025-26. The company outlines the applicable TDS rates and required documentation for both resident and non-resident shareholders. Shareholders must submit necessary forms and documents by August 06, 2026, via the RTA portal to ensure accurate tax deduction on their dividend payouts. Failure to comply may result in higher TDS rates.
Jubilant FoodWorks Clarifies TDS on FY 2025-26 Dividend
Jubilant FoodWorks Limited has released a comprehensive announcement detailing the Tax Deduction at Source (TDS) procedures for the proposed dividend for the Financial Year 2025-26. This communication is essential for all shareholders to understand their obligations and the required steps to ensure correct TDS application.
Dividend Proposal and TDS Framework
The Board of Directors has recommended a dividend of INR 1.20/- per equity share for the financial year ended March 31, 2026, subject to shareholder approval at the upcoming Annual General Meeting (AGM). In line with the Income Tax Act, the Company is mandated to deduct TDS at prescribed rates on dividend payments. These rates are dependent on the shareholder’s residential status and the submission of appropriate documentation.
TDS for Resident Shareholders
Resident shareholders with a valid Permanent Account Number (PAN) on record will be subject to a 10% TDS rate. For resident shareholders whose PAN is not available, invalid, or inoperative, a higher TDS rate of 20% will apply. The company will verify PAN-Aadhaar linkage through a government-enabled online facility to determine the applicable rate. Shareholders may also be eligible for lower or nil TDS rates if they provide a valid certificate from the Income Tax Department. For individual shareholders, if the total dividend does not exceed INR 10,000 or if a duly verified Form 121 is submitted and eligibility conditions are met, nil TDS may apply. Specific documentation requirements are outlined for entities like Mutual Funds, Insurance Companies, Alternative Investment Funds (AIFs), and National Pension System (NPS) Trusts.
TDS for Non-Resident Shareholders (including FPIs)
Non-resident shareholders, including Foreign Portfolio Investors (FPIs), will generally face a TDS rate of 20% (plus applicable surcharge and cess). However, a lower or nil TDS rate can be applied if the shareholder provides a certificate from the income-tax authorities under Section 395(1) of the Income Tax Act, 2025, valid for the Tax Year 2026-27. Non-residents may also opt to be governed by the provisions of the applicable tax treaty between India and their country of tax residence. This requires submission of documents such as a self-attested PAN card, Tax Residency Certificate (TRC), Form 41, and a self-declaration of no permanent establishment in India. The application of beneficial treaty rates is at the Company’s discretion and subject to complete documentation.
Important Submission Deadline
To ensure the correct TDS determination and dividend payout, shareholders are required to submit all necessary details and documents by August 06, 2026. These submissions must be made through the RTA portal provided by MUFG Intime India Private Limited at https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html. The company explicitly states that documents received after the deadline or those that are incomplete will not be considered. Declarations or documents will not be accepted via email.
Additional Information
The Company will email a soft copy of the TDS certificate to the registered email IDs of shareholders. Shareholders are also advised to update their bank account details in their demat accounts or physical folios to ensure the timely receipt of dividend payments, which are processed electronically. In case of any misrepresentation or inaccuracy in the information provided, the shareholder will be responsible for indemnifying the Company. If tax is deducted at a higher rate due to the absence of required documents, shareholders may be eligible to claim a refund by filing their income tax return.
Source: BSE
