EIH Limited Board Recommends Dividend of Rs 1.50 Per Share; Details on Tax Deduction at Source Released
EIH Limited announced that its Board of Directors recommended a dividend of Rs. 1.50 per equity share, based on a face value of Rs. 2/- each for the Financial Year ended March 31, 2026. The company provided comprehensive details regarding the applicable Tax Deduction at Source (TDS) provisions under the Income Tax Act, 2025, which will apply to dividends paid or distributed.The dividend is subject to tax in the hands of shareholders as per the Income Tax Act, 2025. EIH Limited noted that no tax will be deducted on dividend payment to a resident individual shareholder if the total dividend paid during the Tax Year (TY) 2026-27 does not exceed Rs 10,000/-.
The TDS rate is determined based on the residential status and category of the shareholder, requiring shareholders to provide specific declarations and documentation.
TDS Provisions for Resident Shareholders
For resident shareholders (excluding those receiving dividends up to INR 10,000 during TY 2026-27), the withholding tax rate depends on how shares are held and the provided documentation:| S No. | Particular | Withholding Tax Rate | Declaration/Documents Required |
|---|---|---|---|
| 1 | Valid PAN updated (demat) or (RTA, physical) | 10% | N.A. |
| 2 | No / Invalid PAN (demat) or (RTA, physical) | 20% | N.A. |
| 3 | Availability of lower/nil tax deduction certificate from Income Tax Department | Rate specified in Lower tax withholding certificate | Copy of PAN card; Copy of lower tax withholding certificate obtained from Income Tax Department |
Nil TDS Condition for Resident Shareholders
Nil tax is deductible if shareholders submit required documents, including:- Individual with income > Rs 10,000: Submission of Form 121 and a copy of the PAN card.
- Shareholders falling under Section 393(1) (e.g., LIC, GIC, REIT): A copy of the PAN card and a self-declaration with adequate documentary evidence.
- Shareholders under Section 393(5) (Government/RBI/Specified Funds): Submission of a copy of the PAN card and a self-declaration with supporting documentation.
TDS Provisions for Non-Resident Shareholders
The tax deduction for non-resident shareholders varies based on their category:| S No. | Category | Withholding Tax Rate |
|---|---|---|
| 1 | Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial |
| 2 | Alternative Investment Fund - Category III in IFSC | 10% (plus applicable surcharge and cess) |
| 3 | Other Non-resident shareholders (non-tax residents of Notified Jurisdictional Area) | 20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial |
| 4 | Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area | 30% |
| 5 | Sovereign Wealth funds and Pension funds notified by Central Government | NIL |
| 6 | Subsidiary of Abu Dhabi Investment Authority (ADIA) | NIL |
The company noted that the application of the beneficial Tax Treaty Rate is subject to the completeness and satisfactory review of the documents submitted.
Operational Update on Bank Account Details
Regarding dividend payments, members holding shares in physical form are requested to update their KYC details, including PAN, contact information, bank account details, and specimen signature with the Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited.Members holding shares in demat mode are advised to intimate any changes in their address and/or bank mandate solely to their Depository Participants (DPs). Shareholders were urged to ensure that all bank account details within their respective demat accounts or physical folios are updated by the specified deadlines to facilitate timely credit of the dividend.
EIHOTEL Stock Price Movement
On Friday, EIH Limited shares edged higher, settling at ₹291.95 after registering a 0.45% climb. The stock recorded a trading volume of 120,685 shares during the closed 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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