The Phoenix Mills Limited has issued a communication regarding the Tax Deduction at Source (TDS) on the recommended final dividend for the financial year ended March 31, 2026. The company outlines the applicable TDS provisions, required documentation for resident and non-resident shareholders, and the process for availing lower tax rates under tax treaties. Shareholders are urged to update their details to ensure correct tax deduction and timely dividend disbursement.
Dividend Tax Intimation Issued
The Phoenix Mills Limited has provided shareholders with detailed information concerning the tax deduction at source (TDS) on the final dividend recommended for the financial year ending March 31, 2026. The Board of Directors proposed a final dividend of Rs. 2.50 per equity share, which is subject to declaration at the upcoming 121st Annual General Meeting. The company is mandated to deduct tax at source as per the Income Tax Act, 2025, or applicable tax treaties at the time of dividend payment.
Shareholder Actions Required
To ensure accurate TDS and facilitate dividend payment, shareholders are requested to update their Permanent Account Number (PAN), residential status (Resident or Non-Resident), category, and email address. Specific documentation requirements are detailed for various shareholder categories, including resident individuals, mutual funds, insurance companies, and non-residents. Shareholders holding shares in physical form should contact MUFG Intime India Private Limited, while those in demat form need to update their details with their Depository Participant.
TDS Provisions and Rates
For resident shareholders, individuals receiving up to Rs. 10,000 in total dividend will have no TDS. Those receiving over Rs. 10,000 with a valid PAN will be subject to a 10% TDS rate. Shareholders without a valid PAN or with an invalid PAN will face a 20% TDS rate. Specific forms like Form 121 (erstwhile Form 15G/15H) are mentioned for resident individuals whose income tax payable is NIL.
For non-resident shareholders, the standard TDS rate is 20%, plus applicable surcharge and cess. However, they can apply for a lower rate as per Double Taxation Avoidance Agreements (DTAA) by submitting specific documents, including a Tax Residency Certificate (TRC) and self-declarations. Other categories like AIFs and corporations with tax exemptions have specific documentation requirements and applicable rates.
Submission of Documents
All required documents must be uploaded to MUFG Intime India Pvt. Ltd. via the designated link (https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121-41.html) by Thursday, September 10, 2026, to ensure timely tax determination and deduction. Shareholders are also advised to update their email IDs and bank account details for electronic dividend credit.
The company clarifies that this communication is a summary and not a complete analysis of tax consequences. Members are advised to consult their tax professionals for personalized advice.
Source: BSE
