Rashtriya Chemicals and Fertilizers Limited has issued a communication detailing the deduction of tax at source (TDS) on the Final Dividend for the financial year ended March 31, 2026. The announcement clarifies TDS rates applicable to various shareholder categories, including resident individuals, non-residents, and specific entities, along with necessary documentation requirements. Shareholders are urged to ensure their PAN is linked with Aadhaar and to submit required forms by the specified deadline to avoid higher TDS rates.
Dividend Tax Deduction Communication Issued
Rashtriya Chemicals and Fertilizers Limited (RCF) has released a detailed communication regarding the deduction of tax at source (TDS) on the Final Dividend recommended for the financial year ended March 31, 2026. The dividend, recommended at Rs. 1.34/- per equity share, is subject to shareholder approval at the upcoming Annual General Meeting. The record date for determining eligibility for this dividend is set for Friday, September 18, 2026.
TDS Applicability and Rates
As per the Income Tax Act, 2025, dividends are taxable in the hands of shareholders, necessitating TDS by the Company at applicable rates. The communication outlines specific TDS rates and conditions for various shareholder categories:
Resident Shareholders
- Mutual Funds, Government, Insurance Companies: Generally Nil TDS, provided details are updated with depository participants.
- Alternative Investment Funds (AIF) & Category III AIF IFSC: 10% TDS, with specific applicability conditions.
- Resident Individuals:
- Nil TDS if aggregate dividend does not exceed Rs. 10,000/-.
- 10% if dividend paid exceeds Rs 10,000/- and a valid PAN is provided.
- 20% if PAN is invalid or not linked with Aadhaar, or if Form 121 is not submitted.
- Eligible Resident Shareholders: TDS as per a lower deduction certificate issued by the Income Tax Authority.
Non-resident Shareholders
- FII/FPI: 20% TDS, with provisions for lower rates under Double Taxation Avoidance Agreements (DTAA) if specific documents are furnished.
- Other Non-resident Shareholders: 20% TDS, with possibilities for lower rates under DTAA subject to documentation submission.
- Category III AIF IFSC: 10% TDS, with surcharge and cess applicable.
- All Non-resident Shareholders: TDS as per a lower deduction certificate.
Important Procedures and Deadlines
Shareholders are strongly advised to ensure their Permanent Account Number (PAN) is valid and linked with their Aadhaar. Failure to do so may result in a higher TDS rate of 20%. Shareholders holding shares under multiple accounts with a single PAN will have the higher applicable tax rate applied to their entire holding. The deadline for uploading required documents and declarations is Friday, September 18, 2026. Incomplete or unsigned forms will not be considered.
For queries and submission of documents, shareholders can contact the Company’s Registrar and Transfer Agent, MUFG Intime India Private Limited, or the Company directly. The communication also clarifies that it should not be treated as tax advice, and shareholders should consult tax professionals for their specific tax matters.
Source: BSE
