Trent Limited has announced a dividend of ₹6 per equity share for the financial year ending 31st March 2026, subject to approval at the upcoming Annual General Meeting on 23rd June 2026. The dividend, representing 600% of the face value of each share, will be taxable in the hands of shareholders as per the Income-tax Act, 2025. The company will deduct tax at source at the time of payment.
Additionally, Trent’s Board of Directors has approved the issuance of bonus shares in the ratio of 1:2, meaning one bonus share for every two fully paid-up equity shares held, pending shareholder approval. If the bonus issue is approved, the dividend per share will be adjusted to reflect the increased number of shares.
For resident shareholders, tax will be deducted at 10% if a valid PAN is registered, or at 20% if not. Resident individuals receiving dividends up to ₹10,000 in the tax year 2026-27 will not have tax deducted, provided they submit Form 121 or an exemption certificate. Resident non-individuals such as insurance companies, mutual funds, and alternative investment funds can avoid TDS by providing appropriate declarations and documentation.
Non-resident shareholders will face a withholding tax of 20% plus applicable surcharges unless they provide a certificate for lower or nil withholding under Section 395(1) of the Act. They may also benefit from Double Tax Avoidance Treaties if they submit the necessary documentation, including a Tax Residency Certificate and self-declaration of no permanent establishment in India.
Trent has set a deadline of 27th May 2026 for shareholders to submit the required documents to determine the applicable TDS rates. The company has provided a link for online submission of tax-related documents and an email address for resident shareholders to send scanned copies.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).