Paras Defence and Space Technologies Limited has announced its dividend payment schedule and detailed Tax Deducted at Source (TDS) implications for shareholders. The company will pay a dividend of ₹1/- per Equity Share for FY 2025-26, subject to AGM approval. Shareholders are advised on varying TDS rates based on residential status and documentation, with key submission deadlines noted.
Dividend Announcement for FY 2025-26
Paras Defence and Space Technologies Limited has informed its shareholders about the upcoming dividend payment for the Financial Year ended March 31, 2026. The Board of Directors, in their meeting on May 13, 2026, recommended a dividend of ₹1/- per Equity Share (20% on face value of ₹5/-). This dividend payment is contingent upon the approval of the shareholders at the ensuing 17th Annual General Meeting (AGM).
Key Dates for Shareholders
The company has outlined the important dates concerning this dividend distribution:
- AGM Date: Friday, September 11, 2026
- Record Date: Friday, August 28, 2026
- Last date to submit tax-related documents: Friday, August 28, 2026
The dividend will be paid exclusively through electronic mode within 30 days following the AGM.
Tax Deduction at Source (TDS) on Dividend
In accordance with the Income-tax Act, 2025, dividends are taxable, and the company is required to deduct tax at source (TDS) at applicable rates. The TDS rate depends on the shareholder’s residential status and provided documentation.
For Resident Shareholders:
- Resident Individuals: No TDS will be deducted if the total dividend does not exceed ₹10,000 during the Tax Year (TY) 2026-27. For dividends exceeding ₹10,000, shareholders may need to submit Form 121, provided eligibility conditions are met.
- Resident – Other than Individuals: Entities like Insurance Companies and Mutual Funds will have Nil TDS if they provide the necessary self-declarations and registration documents, as specified by the Act.
For Non-Resident Shareholders:
- As per Domestic Tax Law: TDS will be levied at 20% (plus applicable surcharge and cess) on the dividend amount.
- As per Double Tax Avoidance Agreement (DTAA): Non-residents can avail beneficial DTAA rates by submitting required documents such as PAN card, Tax Residency Certificate (TRC), and Form 41.
Shareholders are urged to ensure their bank account details are updated in their demat accounts or physical folios for timely dividend credit. Submission of tax-related documents by August 28, 2026, is crucial for determining the appropriate TDS rate.
Submission of Documents
Documents such as Form 121 and other declarations relevant to Sections 393(5) and 393(6) must be uploaded on the MUFG Intime India Pvt Ltd portal by Friday, August 28, 2026. Failure to provide complete documentation may result in a higher TDS rate. Shareholders can view their tax credit in Form 16B via the TRACES portal.
The company emphasizes that this communication is for informational purposes and does not constitute tax advice. Shareholders should consult with a tax professional for personalized guidance.
Source: BSE
