Navin Fluorine: Tax Deduction on Dividend Explained
Navin Fluorine International Ltd has issued a communication to its shareholders regarding the tax deduction on dividend payments, effective April 1, 2020, as per the Finance Act, 2020. The company declared an interim dividend of ₹8 per equity share for FY 2026-2027, payable on or after November 26, 2026, based on a record date of November 05, 2026. Shareholders will be subject to Tax Deducted at Source (TDS) at rates varying based on their residential status and submitted documentation. Resident shareholders will generally face a 10% TDS, with exemptions for certain low-income individuals or those submitting specific forms. Non-resident shareholders will be subject to a 20% TDS or a lower rate as per applicable Double Taxation Avoidance Agreements (DTAA), requiring submission of documents like a Tax Residency Certificate (TRC) and PAN. The company has provided detailed tables and forms for compliance.
Key Highlights
- Dividend income is taxable in the hands of shareholders from April 1, 2020.
- Interim dividend of ₹8 per share declared for FY 2026-2027.
- TDS rates vary for resident (10%) and non-resident (20% or DTAA rate) shareholders.
- Specific documentation required for TDS exemptions and DTAA benefits.
- Company will deduct tax at source before dividend payment.
Price Impact
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