Himadri Speciality Chemical has announced a proposed dividend of Re 0.80 per equity share for the financial year ending 31 March 2026. This decision was made by the Board of Directors during their meeting on 23 April 2026. The dividend, representing 80% of the face value of Re.1 per share, is subject to shareholder approval at the upcoming 38th Annual General Meeting scheduled for 11 June 2026. The payment will be made to shareholders holding equity shares in either electronic or physical form.
As per the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, necessitating the deduction of tax at source (TDS) by the company at the time of dividend payment. The applicable TDS rates vary based on the shareholder’s residential status and the documentation provided to the company.
For resident individual shareholders, TDS will be deducted at the rate of 10% if the total dividend paid during the tax year 2026-27 exceeds Rs. 10,000, provided a valid PAN is registered. In cases where PAN details are not provided, invalid, or not linked with Aadhaar, a TDS rate of 20% will apply. Shareholders can submit Form 121 for exemption from TDS through their depository participants.
Resident non-individual shareholders, such as insurance companies, mutual funds, and alternative investment funds, may be exempt from TDS upon submission of relevant declarations and documents. Non-resident shareholders will face a withholding tax rate of 20%, with the possibility of availing benefits under Double Tax Avoidance Agreements (DTAA) by providing necessary documentation, including a Tax Residency Certificate.
The company has communicated these details to eligible shareholders via email and has made the information available on its website.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).