Vedant Fashions Limited has issued an intimation to shareholders regarding the deduction of tax at source (TDS) on dividends pertaining to the financial year 2025-26. The communication outlines the applicable rates and necessary documentation required from shareholders to comply with the Income-tax Act, 2025. This update aims to ensure transparency and compliance for shareholders receiving dividend payments.
Dividend Tax Deduction Procedures Detailed
Vedant Fashions Limited has formally communicated details regarding the deduction of tax at source (TDS) on dividend payments for the financial year 2025-26. This announcement is made in accordance with the provisions of the Income-tax Act, 2025. The company is obligated to deduct tax at source from dividends paid to its shareholders at applicable rates.
Shareholder Compliance Requirements
The communication emphasizes that dividend income for the Tax Year 2026-27 remains taxable in the hands of shareholders. To facilitate the correct deduction of TDS, shareholders are required to furnish specific documents and information. The company has provided a detailed breakdown of requirements for both resident and non-resident shareholders, including the submission of PAN, Tax Residency Certificates (TRC), and various self-declarations depending on their specific tax status and applicable treaties.
Documentation and Submission Channels
Shareholders need to submit required documents, such as valid PAN cards, and declarations like Form 121 for resident individuals, or specific certificates for non-residents, to avail beneficial tax rates. The company has specified submission deadlines and methods, including online portals like https://ris.kfintech.com/form15 and email submissions to [email protected] with a copy to the RTA at [email protected]. All communications and documentation must be received by Tuesday, September 22, 2026, by 1900 hours IST. Failure to submit timely and accurate documentation may result in tax deduction at the higher applicable rates.
Importance of Accurate Information
Vedant Fashions stresses the importance of accurate and complete personal details, including PAN and contact information, for all shareholders. For those holding shares in physical form, updating KYC details is crucial for seamless dividend payment. The company also clarifies that tax will be deducted at the higher rate in case of any discrepancies or missing documents, and shareholders may need to claim refunds by filing their income tax returns.
Source: BSE
