Dividend4 Sept 2026, 04:20 pm
Continental Securities Ltd: Tax Deduction on Dividend Explained
AI Summary
Continental Securities Ltd has issued a communication to its shareholders regarding the deduction of applicable tax at source (TDS) on dividends for the financial year 2026-27, in compliance with the Income Tax Act, 2025. The company will deduct TDS at 10% for resident shareholders with valid PAN, and 20% for those without. Specific provisions apply for resident individuals receiving less than ₹10,000, and for entities like insurance companies, mutual funds, and AIFs, requiring specific declarations and documents for potential exemptions or lower TDS rates. Shareholders are also reminded of the mandatory PAN-Aadhaar linking to avoid higher TDS rates.
Key Highlights
- TDS on dividend to be deducted as per Income Tax Act, 2025.
- Resident shareholders with PAN face 10% TDS; without PAN, 20%.
- Exemptions and lower rates apply for resident individuals below ₹10,000 dividend.
- Specific documentation required for insurance, mutual funds, and AIFs.
- Mandatory PAN-Aadhaar linking to avoid higher TDS rates.
Price Impact
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