Vishnu Chemicals: TDS on Dividend Explained for FY26-27

Vishnu Chemicals Ltd has issued a communication detailing the Tax Deducted at Source (TDS) on dividends for the Financial Year 2026-27, as per the Income Tax Act, 2025. The company will deduct tax at prescribed rates, varying based on shareholder residency and PAN status. Resident individuals with valid PAN will face a 10% TDS, while those without a valid PAN will be taxed at 20%. No TDS will be applied if the dividend payout to a resident individual shareholder does not exceed ₹10,000. Specific documentation is required for resident non-individual shareholders, such as insurance companies, mutual funds, and AIFs, to avail NIL TDS rates.