The Great Eastern Shipping Company Limited has announced the details regarding the Tax Deduction at Source (TDS) applicable on the interest payment for its 8.25% Unsecured Redeemable Non-Convertible Debentures (NCDs) with ISIN INE017A08292. The interest payment is scheduled for May 25, 2026, and will be applicable to debenture holders listed as of the record date, May 11, 2026.
The company is required to deduct TDS under section 393 of the Income-tax Act, 2025, on the interest payable on these listed debentures. For resident debenture holders with a valid Permanent Account Number (PAN) linked to Aadhaar, a TDS rate of 10% will be applied. However, no tax will be deducted if the interest paid does not exceed ₹10,000 in a financial year or if the debenture holder submits a duly filled Form No. 121, provided the interest does not exceed the non-taxable amount.
Certain entities such as Life Insurance Corporation, General Insurance Corporation, and other insurers are exempt from TDS, provided they submit the necessary declarations and documentary evidence proving their registration with the Insurance Regulatory and Development Authority of India (IRDAI). Additionally, no TDS will be deducted from interest payable to Mutual Funds, which must furnish their SEBI registration or CBDT notification and a declaration of income exemption under section 11 of the Income-tax Act.
For non-resident debenture holders, TDS will be deducted as per the applicable rates in force under the Income-tax Act. They may also opt for the benefits of the Double Tax Avoidance Treaty (DTAA) if it is more beneficial, by submitting the required documents, including a Tax Residency Certificate and other declarations, by May 11, 2026.
The company has clarified that it is not obligated to apply the beneficial DTAA tax rate at the time of deduction, and the application of such rates depends on the satisfactory review of submitted documents. Debenture holders are advised to submit the necessary documents to avoid higher TDS rates and to update their residential status with their Depository Participants if there are any changes.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).