Sagility Limited has issued a comprehensive communication to its shareholders regarding the Tax Deduction at Source (TDS) on its interim dividend for the Financial Year 2026-27. The company clarifies applicable TDS provisions under the Income-tax Act for both resident and non-resident shareholders, outlining required documentation for claiming exemptions or lower TDS rates. Shareholders are advised to update their details and submit necessary forms by specific deadlines.
Sagility Limited Clarifies Dividend TDS Provisions
Sagility Limited has provided shareholders with detailed information concerning the Tax Deduction at Source (TDS) applicable to the interim dividend declared for the Financial Year 2026-27. This communication, dated October 23, 2026, aims to inform shareholders about the tax implications and the procedural requirements for managing TDS deductions.
Dividend Details and Record Date
The Board of Directors of Sagility Limited, in a meeting held on October 22, 2026, approved an interim dividend of Rs. 0.15 per equity share of face value Rs. 10. The dividend will be paid to shareholders whose names appear in the Register of Members or in the records of the Depositories as of the record date, which is Friday, October 30, 2026.
TDS Applicability for Resident Shareholders
For Resident Shareholders (Individuals and Non-Individuals), tax will be deducted at source at the rate of 10% on the dividend amount, as per Section 393(1) of the Act, unless exempt. Key conditions include a valid Permanent Account Number (PAN) registered with the Depository Participant (DP) or Registrar and Transfer Agent (RTA). If PAN is not available or invalid, TDS will be at a higher rate of 20%. No TDS will be deducted for resident individual shareholders if the aggregate dividend does not exceed Rs. 10,000 during the financial year.
Specific documents are required for claiming nil TDS for Resident Individual Shareholders with valid Form 121, Life Insurance Corporations, General Insurance Companies, and other insurers. Mutual Funds, Alternative Investment Funds (AIFs), and entities unconditionally exempt under specific circulars also have provisions for nil TDS, subject to submission of the relevant declarations and supporting documents.
TDS for Non-Resident Shareholders
Non-Resident Shareholders will be subject to TDS at 20%, plus applicable surcharge and cess, or the Double Taxation Avoidance Agreement (DTAA) rate, whichever is lower. To avail DTAA benefits, shareholders must submit a self-attested copy of their Indian PAN card, a Tax Residency Certificate (TRC) for FY 2026-27, Form 41 for FY 2026-27, and a self-declaration covering specific criteria regarding their tax residency and eligibility for DTAA benefits. Foreign Institutional Investors and Foreign Portfolio Investors also need to provide a self-attested copy of their SEBI registration certificate.
Submission Deadlines and General Instructions
Shareholders are urged to submit all required forms and documents for claiming exemption from tax deduction to the RTA’s website (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) by November 03, 2026. No communications will be accepted after this date for tax determination purposes. For requests under Rule 203 to pass on TDS credit to another person, the deadline is November 13, 2026.
All submitted forms, declarations, and documents must be complete and signed. Incomplete or unsigned submissions will not be considered by the Company. Shareholders are advised to ensure their bank account details are updated to facilitate timely dividend credit.
The Company also noted that for shareholders with multiple accounts under different status/category but a single PAN, the higher applicable tax rate will be considered on their entire holding.
Source: BSE
