Capital SFB: ₹5/share dividend for FY26; TDS rules detailed
Capital Small Finance Bank's Board recommended a final dividend of ₹5 per equity share for FY 2025-26, pending shareholder approval at the upcoming AGM. The bank has issued an intimation regarding Tax Deducted at Source (TDS) on this dividend payout, effective for Tax Year 2026-27. TDS rates will vary based on the shareholder's residential status and the submission of required documents. Resident individual shareholders receiving up to ₹10,000 in dividends during TY 2026-27 will not have tax deducted. Detailed guidelines for resident shareholders include a 10% TDS rate for those with valid PAN and no exemption, with provisions for nil or lower rates upon submitting specific declarations like Form 121 or exemption certificates. Non-resident shareholders, including FIIs/FPIs and other non-residents, will face TDS rates of 20% (plus surcharge and cess) or a beneficial tax treaty rate, subject to providing documents such as a Tax Residency Certificate and Form 41.
Key Highlights
- Board recommended ₹5 per equity share final dividend for FY26.
- TDS on dividend applies for FY26, varying by shareholder status.
- No TDS for resident individuals if dividend is under ₹10,000.
- Resident shareholders require PAN/Form 121 for nil/lower TDS.
- Non-residents need TRC and Form 41 for beneficial treaty rates.
Price Impact
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