The Great Eastern Shipping Company has announced a fourth interim dividend of ₹11.70 per equity share for the financial year 2025-26. This declaration comes as part of the company’s communication regarding tax deduction at source (TDS) on the dividend.
According to the provisions of the Income-tax Act, 2025, the company is required to deduct income tax at source on the dividend payments. The rate of TDS will vary based on the residential status of the shareholders and the documents submitted. For resident shareholders with a valid Permanent Account Number (PAN) linked to their Aadhar, the TDS will be deducted at 10% under section 393(1) of the Income-tax Act.
However, income tax will not be deducted if the dividend paid to a resident individual shareholder does not exceed ₹10,000 in a tax year. Additionally, shareholders under 60 years of age can submit Form No. 121 to claim exemption, provided the dividend does not exceed the non-taxable limit. Shareholders aged 60 or above can also submit Form No. 121 to avail the exemption.
For resident shareholders without a valid PAN, TDS will be deducted at a higher rate of 20% plus applicable surcharge and cess. Certain non-individual resident shareholders, such as insurance companies, alternative investment funds, and mutual funds, can also claim exemption by submitting the necessary documents by 20 May 2026.
Non-resident shareholders will have TDS deducted according to the Income-tax Act’s applicable rates. They may opt for the Double Tax Avoidance Agreement (DTAA) benefits if more favourable, by submitting relevant documents by 20 May 2026. These documents include a tax residency certificate, self-declaration forms, and other specified documents.
The Great Eastern Shipping Company has also advised shareholders to update their PAN, email addresses, and other details with their depositories or the company’s Registrar and Share Transfer Agent, KFin Technologies Limited, to ensure accurate TDS deductions.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).