Arvind Limited Announces Final Dividend Recommendation and Details Tax Deduction at Source Framework
Arvind Limited has announced a recommendation for its final dividend for the financial year ended March 31, 2026, while providing comprehensive details regarding the Tax Deduction at Source (TDS) framework applicable to its shareholders. The Board of Directors recommended the payment of Rs. 4.50/- per equity share upon the approval of shareholders at the ensuing Annual General Meeting.The communication addresses varying tax deduction requirements for both resident and non-resident shareholders, depending on their residential status, category, and submission of specific documentation.
Tax Deductions for Resident Shareholders
For resident shareholders, the TDS rate is determined based on their PAN status and supporting documents.A summary of the withholding tax rates for Resident Shareholders (excluding those who do not exceed INR 10,000 dividend in FY 2026-27) is provided below:
| Particular | Withholding Tax Rate | Requirement |
|---|---|---|
| Valid PAN available (in dematerialized or physical form) | 10% | N.A. |
| No/Invalid PAN (in dematerialized or physical form) | 20% | N.A. |
| Availability of Lower Tax Deduction Certificate from Income Tax Department | Rate specified in the certificate | Copy of PAN card and Lower tax withholding certificate |
Additionally, specific conditions have been outlined for nil TDS deduction to resident shareholders, including:
- Individual Shareholders: Those with dividend income exceeding INR 10,000 must submit a declaration in Form No. 121 along with a copy of their PAN card.
- Non-Applicable Sections (e.g., LIC, REIT): These shareholders must provide a self-declaration and documentary evidence for tax withholding under section 393(1) of the Act.
- Specified Entities: Government or exempt corporations (u/s 393(5)) are required to submit their PAN copy and a corresponding self-declaration.
Non-Resident Shareholders TDS Rates
The Company has outlined specific TDS rates for non-resident shareholders, which depend on various investor categories:| Category | Withholding Tax Rate |
|---|---|
| Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial |
| Alternative Investment Fund - Category III located in International Financial Services Centre | 10% (plus applicable surcharge and cess) |
| Other Non-Resident Shareholders | 20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial |
| Notified Jurisdictional Area Tax Residents | 30% |
| Sovereign Wealth funds and Pension Funds specified under Schedule V to Section 11 of the Act | NIL |
| Subsidiary of Abu Dhabi Investment Authority (ADIA) specified under Schedule V to Section 11 of the Act | NIL |
Key Compliance Timelines and Requirements
The TDS rates are subject to the necessary verification of shareholder details by the Company. Shareholders who wish to avail beneficial tax rates are required to submit specific documentation. The deadline for uploading all requisite documents, such as Form 121, Tax Residency Certificates, or self-declarations, is July 31, 2026.All shareholders are reminded of the importance of updating their KYC data, including PAN Number, email ID, address, and bank account details, with the Registrar and Share Transfer Agent (RTA).
ARVIND Stock Price Movement
Shares of Arvind Limited closed lower today, shedding 3.69% to settle at ₹546.55 in the post-market session. The stock traded within an intraday range, reaching a low of ₹539.00 and a high of ₹568.45 amid a total volume of 1,365,743 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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