KPI Green Energy Limited has informed shareholders about the final dividend payout for the financial year 2025-26. The company announced a final dividend of Re. 0.25 per equity share and a special dividend of Re. 0.15 per equity share, totaling Re. 0.40 per share. The communication also clarifies the applicable Tax Deduction at Source (TDS) provisions for both resident and non-resident shareholders, including specific documentation requirements and rates.
Final Dividend Declared for FY 2025-26
KPI Green Energy Limited has announced a final dividend for the financial year 2025-26. The Board of Directors has recommended a final dividend of Re. 0.25 per equity share, along with a special dividend of Re. 0.15 per equity share. This brings the total dividend payout to Re. 0.40 per equity share, based on a face value of Rs. 5/-. The dividend will be paid to shareholders whose names appear in the Company’s Register of Members or in the records of depositories as beneficial owners as of the record date, which has been set for September 22, 2026.
Tax Deduction at Source (TDS) Provisions
As per the Income Tax Act, dividend income is taxable in the hands of shareholders. KPI Green Energy Limited is required to deduct taxes at source at the time of dividend payment, subject to approval at the upcoming Annual General Meeting (AGM).
For Resident Shareholders:
- Individuals: No tax will be deducted if the total dividend amount for Tax Year 2026-27 does not exceed Rs. 10,000, or if the shareholder provides a duly completed Form 121 meeting eligibility conditions. Form 121 is only required if the dividend exceeds Rs. 10,000; for a dividend of Re. 0.40 per share, this threshold is crossed for holdings exceeding 25,000 shares.
- Non-Individuals: Specific resident non-individuals (e.g., Insurance Companies, Mutual Funds, AIFs, REITs/InVITs) may be exempt from tax deduction upon submission of prescribed self-declarations and supporting documents.
- Lower/NIL Withholding Certificate: Resident shareholders can provide a certificate under Section 395(1) of the Act for lower or NIL withholding tax rates.
For Non-Resident Shareholders:
- Domestic Tax Law: Withholding tax will be at the rate of 20% (plus applicable surcharge and cess) on the dividend amount. A lower rate may apply if a certificate under Section 395(1) of the Act is provided.
- Double Tax Avoidance Agreement (DTAA): Non-resident shareholders can opt for beneficial DTAA rates between India and their country of tax residence. This requires submitting a self-attested PAN card, Tax Residency Certificate (TRC), self-declaration in Form 41, and potentially other documents depending on the type of entity.
Global Depositary Receipt (GDR) Holders:
For GDR holders, tax will be withheld at 10% plus applicable surcharge and cess if a self-attested PAN card is provided. Without PAN details, tax will be deducted at 20% plus applicable surcharge and cess.
Submission of Documents and Payment of Dividend
Shareholders are requested to submit the necessary tax-related documents on or before September 21, 2026, to facilitate the correct determination and deduction of TDS/withholding tax. Documents can be downloaded from the website of the Company or its Registrar and Share Transfer Agent, Bigshare Services Private Limited. The final dividend payment will be made after these deductions, once approved by shareholders at the AGM.
Note: Failure to link PAN with Aadhaar may result in tax deduction at a higher rate of 20% as per Section 397(2) of the Act.
Source: BSE
