Datamatics Recommends Final Dividend of Rs. 5 Per Share, Details TDS Requirements Under ITA 2025
Datamatics Global Services Limited announced that its Board of Directors recommended a final dividend of Rs. 5/- per equity share for shareholders whose names appear in the Register of Members as on the Record Date. This decision pertains to the financial year ended March 31, 2026.The company noted that, under the provisions of the Income Tax Act, 2025 (ITA 2025), dividend payments are taxable in the hands of shareholders. Consequently, if approved at the ensuing Annual General Meeting (AGM), Datamatics will deduct tax at source (TDS) according to the applicable rates specified by ITA 2025.
The company specified that no tax will be deducted on the payment of dividends to a resident individual shareholder if the total dividend paid during Tax Year (TY) 2026-27 does not exceed Rs. 10,000/-.
Tax Deduction at Source for Resident Shareholders
The TDS rate for resident shareholders depends on their registration status and documentation provided to the company or Registrar and Transfer Agent (RTA). The rates are structured as follows:| Status / Documentation | Withholding Tax Rate |
|---|---|
| Valid PAN updated (shares held dematerialized form, or RTA in physical form) | As per Section 393(1) of ITA 2025 - 10% |
| No / Invalid / Inoperative PAN updated | As per Section 397(2) of ITA 2025 - 20% |
| Lower or Nil Tax Deduction Certificate available (under Section 395(1)) | Rate specified in the certificate obtained from the Income Tax Department |
For residents seeking nil tax deduction, specific declarations and documents must be furnished to the company, such as Form No. 121 for individuals with dividend income exceeding ₹10,000/-, or necessary self-declarations for entities like LIC, GIC, or specified AIFs (Category I & II).
TDS Rates for Non-Resident Shareholders
For non-resident shareholders, the withholding tax rate varies based on their category and documentation. The key rates include:| Shareholder Category | Applicable Tax Rate |
|---|---|
| Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess), subject to applicable Treaty rate |
| Alternative Investment Fund - Category III located in IFSC | 10% (plus applicable surcharge and cess) |
| Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area | 30% (plus applicable surcharge and cess) |
| Sovereign Wealth Funds and Pension Funds notified by Central Government | NIL |
The company has set a deadline for the submission of all required tax-related documents to September 11, 2026. Failure to submit the necessary details by this date may result in the application of a higher rate of withholding tax as per Section 397(2). The requisite forms and declarations are available on the company's investor relations website.
DATAMATICS Stock Price Movement
As of 2:07 PM, shares of Datamatics Global Services Limited are slipping by 1.92% in live trading, currently priced at ₹836. The stock saw a traded volume of 51,119 shares during the session.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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