Balrampur Chini Mills: Tax Deduction on Dividend Payout Explained
Balrampur Chini Mills Ltd has issued a communication to its shareholders regarding the Tax Deduction at Source (TDS) on the interim dividend of INR 4.00 per equity share approved on November 4, 2026. The record date for this dividend is November 11, 2026. The company will deduct TDS as per the Income-tax Act, 2025, at applicable rates, which may vary based on shareholder status and tax treaties. For resident individual shareholders, no tax will be deducted if the total dividend payout for FY 2026-27 does not exceed INR 10,000. The communication details various scenarios for resident shareholders, including requirements for valid PAN, submission of Form 121, and lower/nil tax deduction certificates.
Key Highlights
- Interim dividend of INR 4.00 per share declared.
- TDS will be deducted on dividend payouts as per Income-tax Act, 2025.
- No TDS for resident individuals if dividend is INR 10,000 or less.
- Shareholders need to provide valid PAN and relevant declarations.
- Form 121 is now the prescribed declaration for tax exemption.
Price Impact
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