Jubilant Ingrevia Limited has issued a communication to its shareholders on August 1, 2026, outlining the Tax Deduction at Source (TDS) procedures for the proposed final dividend for FY 2025-26. The company details various withholding tax rates applicable based on shareholder status and the required documentation to avail lower or nil tax deductions. This aims to ensure compliance with the Income-tax Act, 1961, and inform shareholders of the net dividend they can expect.
Shareholders Informed on Dividend Tax Deductions
Jubilant Ingrevia Limited has communicated essential information to its shareholders regarding the deduction of tax at source (TDS) on the final dividend proposed for the financial year 2025-26. This disclosure, dated August 1, 2026, follows the company’s board recommendation for a dividend of ₹2.50 per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The communication clarifies that tax will be withheld at prescribed rates as per the Income-tax Act, 1961.
Key Tax Provisions Detailed
For resident individual shareholders, no tax will be deducted if the total dividend paid during the tax year 2026-27 does not exceed INR 10,000. For amounts exceeding this threshold, or for other categories of resident shareholders, varying withholding tax rates apply. These rates are contingent upon factors such as the availability of a valid PAN, with a 10% rate for those with a valid PAN and 20% for those with an invalid or missing PAN.
Shareholders can also apply for lower or nil tax deduction by furnishing a certificate from the Income Tax Department. Specific declarations and documentation are required for various entities, including insurance companies, mutual funds, alternative investment funds (AIFs), and business trusts, to claim exemptions or nil tax deductions.
Non-Resident Shareholder Requirements
Non-resident shareholders are subject to specific withholding tax rates, typically 20%, plus applicable surcharge and cess, or a lower tax treaty rate if beneficial and supported by requisite documentation such as a Tax Residency Certificate (TRC) and declarations regarding permanent establishment and beneficial ownership.
The company emphasizes that the application of beneficial tax treaty rates depends on the completeness and satisfactory review of submitted documents. Shareholders are advised to provide necessary forms and documents, such as Form 121, PAN cards, and Tax Residency Certificates, to the company’s Registrar and Share Transfer Agent or directly to the company by a specified deadline to ensure correct tax deduction.
Important Notes for Shareholders
Jubilant Ingrevia has also included several important notes for shareholders. These include the need to update KYC data, the process for receiving TDS certificates electronically, and the company’s right to rely on its independent assessment for tax deduction if information provided is contrary to received declarations. Shareholders are strongly encouraged to consult their tax advisors for personalized guidance on tax implications.
Source: BSE
