RHI Magnesita India Limited has communicated to its shareholders regarding the Tax Deduction at Source (TDS) on dividend income. A detailed communication, sent on August 31, 2026, outlines the process and necessary documentation for shareholders eligible to claim exemption from TDS on the final dividend for the financial year 2025-26. The company emphasizes timely submission of documents by September 14, 2026.
Shareholder Communication on Dividend TDS
RHI Magnesita India Limited has issued a crucial communication to all its shareholders concerning the Tax Deduction at Source (TDS) applicable to dividend income. This follows a detailed notice sent on August 31, 2026, which provides comprehensive guidance on the procedures and documentation required for shareholders seeking to claim an exemption from TDS on the final dividend payment for the financial year 2025-26.
Key Dates and Requirements
The company highlights the importance of adhering to specific deadlines for submitting the necessary documents. Shareholders are urged to ensure their documentation is submitted on or before Monday, September 14, 2026. This deadline is critical for the company to accurately determine and deduct the appropriate TDS rate, potentially avoiding higher withholding tax implications for the dividend payment related to the financial year 2025-26.
TDS Provisions for Residents and Non-Residents
The communication details applicable TDS provisions under the Income Tax Act for both Resident and Non-Resident shareholders, including individuals and non-individuals. It specifies different TDS rates based on factors such as the presence of a valid Permanent Account Number (PAN), PAN-Aadhaar linkage, and residential status. For resident individuals with a valid PAN, the rate is generally 10%, while those without a linked PAN or with an invalid PAN face a 20% deduction. Specific exemptions and requirements are outlined for resident non-individual shareholders (e.g., Insurance Companies, Mutual Funds) and non-resident shareholders, including those opting for Double Taxation Avoidance Agreement (DTAA) benefits.
Importance of Timely Submission
Shareholders are strongly advised that any requests or communications pertaining to tax determination or deduction received after September 14, 2026, will not be considered. All submissions must be made via email to [email protected]. The company clarifies that while there is an option to file a return of income to claim a refund if tax is deducted at a higher rate due to late or incomplete submissions, no claim can be made against the company for such deductions.
Online Resources and Annexures
The company has also provided links to various annexures and forms within the communication for shareholders’ reference. These include ‘Annexure A’ (Form 121), ‘Annexure B’ (Declaration of category of Shareholder), ‘Annexure C’ (TDS Declaration Format under Rule 203), and ‘Annexure D’ (Non-Resident PE and Beneficial ownership declaration). Shareholders can access these documents to complete their submissions accurately. The company will email a soft copy of the TDS certificate in due course, and shareholders can also view TDS credit in Form 168 via their e-filing account on the income tax portal.
Source: BSE
