Vinati Organics Limited has issued a communication to its shareholders regarding the tax deduction at source (TDS) on dividends for the financial year 2025-26. The company outlines the process and required documentation for claiming tax exemptions and provides details on TDS rates for resident and non-resident shareholders. Shareholders are urged to submit necessary documents by July 25, 2026, to ensure correct tax deduction.
Vinati Organics Limited: Shareholder Dividend Tax Information
Vinati Organics Limited has released important information for its shareholders concerning the tax deduction at source (TDS) on dividends for the financial year 2025-26. This communication details the procedures and necessary documentation required for shareholders to claim any applicable tax exemptions on their dividend income.
Recommended Dividend and Tax Implications
The Board of Directors has recommended a final dividend of Rs. 8.50/- (850%) per equity share for the financial year ended March 31, 2026. As per the Income Tax Act, 2025, dividends are taxable in the hands of shareholders, and Vinati Organics will be required to deduct tax at source at the time of payment, subject to the dividend being declared at the upcoming Annual General Meeting (AGM).
TDS for Resident Shareholders
For resident individual shareholders, TDS will be deducted at 10% on the dividend amount, unless exempt. However, TDS will not apply if the total dividend paid to an individual shareholder does not exceed Rs. 10,000. Shareholders can also provide a duly filled Form 121 to avoid TDS, provided eligibility conditions are met. A valid Permanent Account Number (PAN) is mandatory for all shareholders. Certain categories, such as insurance companies and mutual funds, may be eligible for NIL/lower tax deduction upon submission of specific documentary evidence and a self-declaration.
TDS for Non-Resident Shareholders
Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, will be subject to withholding tax at 20%. They have the option to avail benefits under Double Taxation Avoidance Agreements (DTAA) if they are more beneficial. To avail DTAA benefits, non-resident shareholders must provide documents such as a Tax Residency Certificate (TRC), PAN (if applicable), and a self-declaration confirming their tax residency status and beneficial ownership of shares.
Key Dates and Submission Requirements
Shareholders are requested to provide all necessary details and documents for determining the appropriate TDS rate no later than July 25, 2026. Documents can be downloaded from the provided links. The company reserves the right to reject incomplete or discrepant documents. In cases where tax is deducted at a higher rate due to incomplete information, shareholders have the option to claim a refund by filing their income tax return.
Updation of Shareholder Details
The communication also reminds shareholders to update their Email IDs, Phone Numbers, and Bank details. Shareholders holding shares in physical form who have not registered their email addresses can do so via a provided link. For shares held in electronic form, updates should be directed to Depository Participants (DPs).
Source: BSE
