The Bombay Burmah Trading Corporation Limited announced the recommendation of an interim dividend of ₹17 per share for FY 2025-26. The Record Date is set for February 20, 2026. Shareholders must ensure their PAN, residential status, and other details are updated by this date for accurate Tax Deducted at Source (TDS) compliance, as dividends are now taxable in the hands of shareholders.
Interim Dividend Recommendation Announced
The Board of Directors of The Bombay Burmah Trading Corporation Limited has recommended an interim dividend of ₹17 (850%) per Equity share with a face value of ₹2 each for the Financial Year 2025-26. This recommendation was made during the Board Meeting held on February 13, 2026.
Record Date and Tax Liability
The dividend payment will be made to shareholders recorded on the Register of Members or Depositories as of the Record Date, which is Friday, February 20, 2026. Shareholders are reminded that pursuant to the Income Tax Act, dividends paid on or after April 1, 2020, are taxable in their hands, requiring the Corporation to deduct Tax at Source (TDS) at the applicable rates.
Section A: Detail Updation Requirements
All shareholders must ensure their details are updated in their respective demat accounts or with the Corporation/RTA on or before February 20, 2026. The Corporation will rely on these details for TDS compliance:
- Valid Permanent Account Number (PAN).
- Residential status (Resident or Non-Resident for FY 2025-26).
- Shareholder Category (e.g., Individual, HUF, Mutual Fund, Foreign Company).
- Email Address and Residential Address.
Section B: TDS Provisions for Resident Shareholders
For resident individuals with valid PANs, TDS is 10% under Section 194. However, exemption applies if:
- Total dividend received from the Company in FY 2025-26 does not exceed ₹10,000; OR
- The shareholder submits a valid Form 15G (Individuals) or Form 15H (Individuals aged 60+), provided all eligibility criteria are met.
If the PAN is invalid or not provided, TDS will be deducted at 20% under Section 206AA.
Exempt Categories (0% TDS for Residents)
Specific resident entities are eligible for 0% TDS upon submitting requisite self-declarations and documents:
- Insurance Companies/LIC/GIC: Must provide self-declaration as an ‘Insurer’ and IRDA/LIC/GIC certificate.
- Mutual Funds: Must provide self-declaration of SEBI registration and PAN/registration evidence.
- NPS Trust: Must provide self-declaration of qualifying as NPS trust and submitting PAN card copy.
- Recognized Provident Funds and Approved Superannuation Funds: Must submit valid approval orders.
- Government Entities: Central or State Government/RBI/Corporation are exempt under Section 196(i).
II. TDS Provisions for Non-Resident Shareholders
TDS for non-residents is generally 20% plus surcharge and cess.
- FII/FPIs (Section 196D): Taxed at 20%, with surcharge and cess.
- Other Non-residents (Section 195): Taxed at 20%. Lower rates under Double Taxation Avoidance Agreements (DTAA) may be considered upon submission of specific documentation, including a PAN card and a Tax Residency Certificate (TRC) for FY 2025-26, and mandatory filing of Form 10F online.
Exemptions/Lower Rates for Non-Residents
- Sovereign Wealth funds/Pension funds (Section 10(23FE)): 0% TDS upon providing notification copy and self-declaration.
- Category III AIF in IFSC (Section 196D): Taxed at 10%.
Documentation Submission Deadlines and Notes
All required forms and declarations must be uploaded to the KFIN Technologies Limited portal or sent physically to the RTA by Friday, February 20, 2026. The Corporation will not entertain communication regarding tax determination after this date.
Important Notes for Shareholders
- All stated tax rates are subject to enhancement by surcharge and cess, where applicable.
- Shareholders are strongly advised to update their bank account details in their demat/physical folios to ensure timely electronic credit of the dividend.
- If documents are incomplete, TDS may be deducted at a higher rate, but shareholders retain the option to file their income tax return to claim a refund.
- For shareholders holding shares across multiple accounts with different statuses, the higher applicable tax rate will be considered on the entire holding under that PAN.
Source: BSE
