Relaxo Footwears Limited has issued a communication to its shareholders regarding Tax Deducted at Source (TDS) on dividend payments for the Financial Year 2026-27. The company emphasizes the requirement of updated details, including PAN and residential status, for the correct application of TDS rates. Shareholders are advised to ensure their information is current by the Record Date, September 18, 2026, to facilitate accurate tax withholding and dividend distribution.
Relaxo Footwears Outlines Dividend TDS Process
Relaxo Footwears Limited has provided shareholders with detailed information concerning the Tax Deduction at Source (TDS) applicable to dividend payments for the Financial Year 2026-27. This communication is in compliance with the Income-tax Act, 2025, which mandates TDS on dividend income.
Shareholder Actions Required for TDS Compliance
All shareholders are urged to ensure that their Demat accounts or physical share records are updated with crucial details before the Record Date, set for September 18, 2026. These essential details include a valid and operative Permanent Account Number (PAN) and accurate residential status for FY 2026-27. The company will rely on the information available in its Register of Members and depositories for TDS compliance.
Shareholders are categorized, and specific documentation requirements are outlined for each. This includes providing:
- Valid PAN
- Residential status (Resident or Non-Resident)
- Shareholder category (e.g., Mutual Fund, Individual, FPI, etc.)
- Email Address
- Residential Address
TDS Rates and Documentation for Resident Shareholders
For resident shareholders, the TDS rate is generally 10% if a valid PAN is updated. However, if the PAN is invalid or inoperative, the TDS rate increases to 20%. Resident individual shareholders receiving dividends not exceeding ₹10,000 during FY 2026-27 are exempt from TDS. Specific forms, such as Form 121 (previously 15G/15H), are required for claiming nil tax deduction under certain conditions. For entities like insurance companies, Government bodies, and mutual funds, nil TDS is applicable upon submission of relevant declarations and supporting documents.
TDS Provisions for Non-Resident Shareholders
Non-resident shareholders are subject to TDS at rates as per the Income-tax Act, 2025, or the applicable Double Taxation Avoidance Treaty (DTAA) rate, whichever is more beneficial. Required documents include a PAN card, Tax Residency Certificate (TRC), electronically uploaded Form 41 (earlier Form 10F), and a self-declaration. Specific procedures and documentation apply to Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs), Alternative Investment Funds (AIFs) located in International Financial Services Centres (IFSCs), and other non-resident entities.
Important Notes and Deadlines
The company reserves the right to call for further information and will apply domestic law or DTAA for TDS. Incomplete or incorrect information may lead to deduction at higher rates, with an option for shareholders to claim refunds through their income tax returns. All required documents must be submitted or uploaded on the designated portal (https://ris.kfintech.com/form15/) or emailed to [email protected] on or before September 18, 2026. The company will not consider submissions made after this date.
Shareholders are advised to consult their tax advisors for personalized guidance on tax implications.
Source: BSE
