Valplast Technologies Limited has issued a comprehensive communication to its shareholders regarding the deduction of tax at source (TDS) on dividends for the Financial Year 2026-27. The notice clarifies the applicable rates, required documentation for resident and non-resident shareholders, and emphasizes the importance of timely submission to ensure correct tax withholding. It also updates on bank account detail requirements for direct dividend credit.
Dividend Tax Deduction Communication
Valplast Technologies Limited has released a detailed communication to its shareholders concerning the tax deduction at source (TDS) on dividends. This notice, dated September 1, 2026, outlines the procedures and requirements for the Financial Year 2026-27, aligning with the Income Tax Act and the Finance Act.
Key Information for Shareholders
The company has provided a summary of the applicable provisions for TDS on dividend payments. For resident shareholders, tax is generally deducted at 10% if PAN is valid and linked, or 20% if not. Resident individuals are exempt from TDS if their total dividend does not exceed ₹10,000/- or if they furnish Form 121 under specific conditions.
For non-resident shareholders, withholding tax is at 20% (plus surcharge and cess), with provisions for lower rates under Double Tax Avoidance Agreements (DTAA) or certificates under Section 395 of the Act. Shareholders are required to submit specific documents, including PAN details, Tax Residency Certificates (TRC), and declarations, by a cut-off date of September 5, 2026.
Submission of Documents and Bank Details
Shareholders are urged to submit all required tax-related documents, such as Form 121, declarations, and certificates, to the registered office of the Company by the specified cut-off date. Failure to provide these documents may result in higher TDS rates. The company also reminds shareholders to ensure their bank account details are updated in their demat or physical folios for timely dividend credit, as payments will be made electronically from April 1, 2024.
The full details and necessary forms can be accessed on the company website at valplastech.com/communication-with-respect-to-tds/.
Source: BSE
