Speciality Restaurants Ltd: Tax Deduction on Dividend Explained
Speciality Restaurants Ltd has issued a communication to its shareholders regarding the tax deduction at source (TDS) on dividends. The company clarifies that dividend income is taxable as per the Income Tax Act, 2025. Shareholders are advised on the process and formalities to ensure appropriate tax deduction. The recommended dividend of ₹1.00 per equity share for FY ended March 31, 2026, is subject to shareholder approval at the upcoming AGM. TDS rates will vary based on residential status and submitted documents. Resident shareholders with PAN will face a 10% TDS, while those without PAN or with invalid PAN will be subject to 20%. Exemptions apply for dividends not exceeding ₹10,000, or with valid Form 121, or specific orders from tax authorities. Insurance companies may be exempt with proper documentation.
Key Highlights
- Dividend income is taxable for shareholders as per Income Tax Act, 2025.
- TDS on recommended dividend of ₹1.00 per share will be applicable.
- TDS rates vary: 10% with PAN, 20% without PAN for resident shareholders.
- Shareholders must update PAN and residential status with RTA/Depositories.
- Exemptions and NIL TDS are possible with specific documents and conditions.
Price Impact
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