Prince Pipes and Fittings Limited has issued a communication to its shareholders regarding the Tax Deducted at Source (TDS) process for the final dividend declared for the Financial Year ended March 31, 2026. The company outlines the applicable TDS rates and documentation requirements for resident and non-resident shareholders to ensure correct deduction and dividend payout. Shareholders are advised to submit necessary documents by a specified deadline to avoid higher TDS rates.
Dividend TDS Communication Issued
Prince Pipes and Fittings Limited has provided important information to its shareholders concerning the deduction of tax at source (TDS) on the final dividend recommended for the Financial Year ended March 31, 2026. This communication, dated September 4, 2026, follows the Income-tax Act and aims to inform shareholders about the process and requirements for dividend distribution.
Dividend Details and TDS Applicability
The Board of Directors recommended a dividend of 10% per Equity share, amounting to Rs. 1/- per share. This dividend is subject to shareholder approval at the upcoming Annual General Meeting on September 16, 2026. The company will deduct TDS at applicable rates, with an exemption for resident individuals if their total dividend income for Tax Year 2026-27 does not exceed INR 10,000/-.
Shareholder Categories and Requirements
The communication details specific requirements based on shareholder category:
Resident Shareholders
- Shareholders with valid PAN: A 10% TDS will be applicable. Shareholders must ensure their PAN is updated with depositories or the company’s registrar.
- Resident individuals receiving dividend income not exceeding INR 10,000/- will be exempt from TDS.
- Shareholders providing a duly filled Form 121 (equivalent to Form 15G/15H) along with a self-attested PAN copy can claim exemptions.
- Specific exemptions and documentation requirements apply to entities like Insurance Companies, Corporations exempt from income tax, and Mutual Funds.
Non-Resident Shareholders
- Shareholders without valid PAN or with invalid PAN: A 20% TDS will be applied.
- Non-resident shareholders opting for Tax Treaty rates must submit a Tax Residency Certificate (TRC), a self-declaration confirming no Permanent Establishment in India, and an electronically filed Form 41.
- Failure to provide these documents will result in TDS at 20% plus applicable surcharge and cess.
Important Notes and Submission Deadlines
It is mandatory for all shareholders to provide a valid Permanent Account Number (PAN). In its absence, TDS will be deducted at a higher rate of 20%. Shareholders holding shares under multiple accounts should be aware that the highest applicable tax rate will be considered for their entire holding.
All necessary documents must be submitted online via the provided link (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) or emailed to [email protected] by September 11, 2026, 5:00 PM. For physical submissions, documents should be sent to MUFG Intime India Private Limited by the same deadline.
Bank Account Updates
Shareholders are also urged to ensure their bank account details are updated in their demat or physical folios to facilitate timely credit of dividend payments. For physical folios, furnishing PAN, contact details, and bank account details is mandatory for electronic dividend disbursement.
Source: BSE
