Trident Limited has declared a first interim dividend of INR 0.50 per fully paid-up equity share for the financial year 2026-27. The dividend, equivalent to 50% per equity share with a face value of INR 1 each, will be distributed to shareholders whose names appear in the Register of Members or Benpos as of the record date, May 23, 2026.
In accordance with the provisions of the Income-tax Act, 2025, dividend income is taxable in the hands of shareholders. For resident shareholders, the entire dividend will be subject to a Tax Deduction at Source (TDS) at a rate of 10%, unless the total dividend paid during a financial year does not exceed ₹10,000. In such cases, no tax deduction will be applicable. However, if the dividend surpasses ₹10,000 with subsequent payments, TDS will be deducted at the applicable rate.
Resident individual shareholders can avoid TDS by submitting Form 121, provided they meet the eligibility conditions. Additionally, certain entities like mutual funds, insurance companies, and alternative investment funds are eligible for NIL TDS, subject to the submission of relevant documents.
For non-resident shareholders, taxes will be withheld at a rate of 20% plus applicable surcharge and cess, in line with Section 393(2) of ITA 2025. Non-residents may opt to be governed by the Double Tax Avoidance Agreement (DTAA) provisions, subject to the submission of necessary documentation such as a Tax Residency Certificate and a self-declaration of eligibility for DTAA benefits.
Foreign Institutional Investors and Foreign Portfolio Investors will have tax deducted at a rate of 20% or the DTAA rate, whichever is more beneficial, contingent upon document submission.
Trident Limited has emphasised that the application of beneficial DTAA rates depends on the completeness and satisfactory review of the submitted documents by the company or its Registrar and Transfer Agent.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).