Sheela Foam Ltd: TDS on Dividend Payout Communication
Sheela Foam Ltd has issued a communication regarding Tax Deduction at Source (TDS) on dividend payouts. The company's Board recommended a final dividend of Re. 1/- (20%) per equity share for FY 2025-26, subject to shareholder approval at the AGM on July 16, 2026. The dividend will be payable on July 9, 2026. The communication details the TDS applicability based on the Income Tax Act, 2025, outlining varying tax rates for resident and non-resident shareholders depending on their status and submitted documentation. For resident individual shareholders, no tax will be deducted if the total dividend does not exceed ₹10,000 during FY 2026-27. Specific forms and declarations are required for nil or lower TDS rates for different shareholder categories.
Key Highlights
- Sheela Foam recommends Re. 1/- per share final dividend for FY 2025-26.
- TDS on dividend payout is applicable as per Income Tax Act, 2025.
- Tax rates vary for resident and non-resident shareholders.
- Nil TDS for resident individuals if dividend payout is <= ₹10,000.
- Shareholders must provide necessary documents for TDS exemptions/rates.
Price Impact
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