Samvardhana Motherson International Limited has announced an interim dividend of Re. 0.35 per equity share for the financial year 2025-26. The dividend was declared at the Board of Directors meeting held on March 19, 2026. Shareholders holding equity shares as of the record date, March 27, 2026, will be eligible to receive the dividend, which will be paid or dispatched within 30 days of the declaration.
In compliance with the Income Tax Act, 1961, the dividend is taxable in the hands of shareholders, and the company will deduct tax at source (TDS) at applicable rates. The TDS rate will vary based on the residential status of the shareholder and the documents submitted to the company. For resident shareholders, a valid PAN will attract a 10% TDS, while an invalid or no PAN will result in a 20% TDS. Shareholders can submit Form 15G or Form 15H to claim a nil TDS rate, provided they meet the eligibility criteria.
Non-resident shareholders can benefit from the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence, which may offer a more favourable TDS rate. To avail of the DTAA benefits, non-resident shareholders must provide a Tax Residency Certificate and other relevant documents.
The company has urged shareholders to submit the necessary declarations and documents by March 26, 2026, to ensure the correct TDS rate is applied. This communication aims to facilitate the smooth processing of the interim dividend and ensure compliance with tax regulations.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).