RailTel Corporation of India Limited has declared a second interim dividend for the financial year 2025-26. The decision was made during a Board of Directors meeting on 9th March 2026. The dividend is set at 10% of the paid-up share capital, equating to Re 1 per equity share. The record date for the dividend has been established as 13th March 2026, with payment scheduled for 24th March 2026.
In compliance with the Securities and Exchange Board of India (SEBI) regulations, RailTel will employ only electronic modes of payment for the dividend, as approved by the Reserve Bank of India. Consequently, shareholders are encouraged to update their bank details with their respective depositories to facilitate seamless electronic crediting of the dividend amount.
The company has also communicated to its shareholders regarding the deduction of tax at source (TDS) on the dividend, in line with the Income Tax Act, 1961. For resident shareholders, TDS will be deducted at a rate of 10% under Section 194, provided a valid Permanent Account Number (PAN) is available. In cases where a valid PAN is not available, TDS will be deducted at a higher rate of 20%, as stipulated by Section 206AA of the Act. Shareholders are advised to ensure their PAN is linked with their Aadhaar to avoid higher TDS rates.
RailTel has outlined several scenarios where TDS may not be deducted or may be deducted at a lower rate. These include the submission of Form 15G or 15H, certificates for lower or nil deduction, and declarations from insurance companies, mutual funds, and other entities eligible for exemption under specific sections of the IT Act. Shareholders are required to submit the necessary documentation to claim these exemptions.
Analysts note that RailTel’s move to declare an interim dividend is a positive signal of the company’s financial health and commitment to returning value to its shareholders. The emphasis on electronic payments aligns with broader industry trends towards digitisation and efficiency. However, shareholders must remain vigilant regarding compliance with tax regulations to maximise their returns.