Rashtriya Chemicals and Fertilizers Limited (RCF) has announced details regarding the deduction of tax at source on the final dividend for the fiscal year 2024-25. The final dividend of ₹1.32 per equity share is subject to shareholder approval at the upcoming AGM. The communication outlines applicable tax rates and required documentation for resident and non-resident shareholders to ensure proper tax compliance.
Final Dividend Tax Information
Rashtriya Chemicals and Fertilizers Limited (RCF) has released information concerning tax deductions at source for the final dividend pertaining to the fiscal year 2024-25. A final dividend of ₹1.32 per equity share (13.20% on a share of ₹10) was recommended at the board meeting held on May 27, 2025, pending shareholder approval at the Annual General Meeting (AGM).
Tax Implications for Resident Shareholders
As per the Income Tax Act, dividends paid after April 1, 2020, are taxable in the hands of the shareholders, requiring the company to deduct tax at source. Below are some crucial details regarding tax rates for resident shareholders:
- If total dividend income exceeds ₹10,000, tax is deducted at 10% provided PAN is available. Otherwise, it is 20%.
- Shareholders providing Form 15G/15H may be eligible for NIL deduction, provided eligibility conditions are met.
- For Indian Commercial Banks/Financial Institutions, the tax rate is 10%.
- Insurance Companies and Government entities may have NIL deduction with proper documentation.
Tax Implications for Non-Resident Shareholders
For non-resident shareholders, tax is generally withheld at 20% plus applicable surcharge and cess. However, they may opt for rates under the Double Taxation Avoidance Agreement (DTAA) if beneficial.
To avail of DTAA benefits, non-resident shareholders must provide:
- PAN Card copy (if available).
- Tax Residency Certificate (TRC) valid as of the AGM date.
- Electronic Form 10F for FY 2025-26.
- Self-declaration confirming tax residency and beneficial ownership.
Without these documents, TDS will be recovered at 20% plus applicable charges.
Important Notes
Shareholders must record a valid Permanent Account Number (PAN). Without it, tax will be deducted at a higher rate of 20%. If a resident shareholder’s PAN is inoperative, tax will be deducted at 20%.
Document Submission
Shareholders must upload required documents to the MUFG Intime India Private Limited website by October 10, 2025, to determine applicable TDS. The website link is https://web.in.mpms.mufg.com/formsreg/submission-of-form-15g-15h.html.
Source: BSE
