Final Dividend Recommended: Five-Star Business Finance Details TDS Structure for Shareholders
Five-Star Business Finance Limited has announced a final dividend of Rs. 2.00 per equity share, recommending this payment following its Board of Directors meeting held on April 28, 2026. The company provided detailed information regarding the Tax Deducted at Source (TDS) applicable to shareholders under the provisions of the Income-tax Act, 2025 and subsequent amendments.The dividend recommendation was made based on the company's performance for the financial year 2025/26.
Dividend Timeline and Shareholder Eligibility
Key dates related to the dividend payment were specified in the communication:- Record Date: The date for determining shareholder eligibility was set as July 31, 2026.
- General Meeting: The Annual General meeting of the company is scheduled for August 31, 2026.
- Payment Deadline: The final dividend payment is slated to occur on or before September 29, 2026, pending approval.
Tax Deducted at Source (TDS) Provisions
The communication addressed TDS obligations based on the status of various shareholders under the Income-tax Act, 2025. For resident individuals who have registered their valid PAN, tax is required to be deducted at source at a rate of 10% on the dividend amount. In cases where the shareholder lacks a PAN or has not registered it, TDS will be deducted at the rate of 20% (plus applicable surcharge and cess).The applicability of tax for resident shareholders across different categories is summarized below:
| Category of Shareholder | Rate of Deduction (%) | Notes |
|---|---|---|
| Resident Individuals | Exempt where total dividend does not exceed INR 10,000; otherwise, 10% shall apply | Must meet specific conditions for exemption. |
| Alternative Investment Fund (AIF) | Category I or II AIF: Exempted; Category III AIF: 10% | Based on AIF classification. |
| Mutual Funds | Details provided in Annexure-A. | Tax treatment outlined according to the Act. |
| Insurance Companies | Exempt, subject to submission of valid documents as per the Act. | Eligibility dependent on documentation. |
| Government (Central/State) | Details provided in Annexure-A. | Tax exemption applies under certain conditions. |
| Others | 10% | Standard rate for applicable categories. |
Requirements for Non-Resident Shareholders
For non-resident shareholders, TDS is set at 20% (plus applicable surcharge and cess) or at the relevant Tax Treaty Rates, whichever is lower. Non-residents seeking to avail benefits under a Double Tax Avoidance Agreement (DTAA) must provide specific documentation, including a Tax Residency Certificate (TRC) for the Financial Year 2025-26, and complete requisite self-declaration forms.The company established August 10, 2026, as the cut-off date for receiving all necessary tax exemption forms.
Investor Action Required
Shareholders are requested to update their records, including residential status, Permanent Account Number (PAN), bank account details, and registered contact information through their respective depositories or KFin Technologies Limited. The company emphasized that if documents are not submitted satisfactorily by the cut-off date, tax will be deducted at applicable rates based on available records.FIVESTAR Stock Price Movement
On Friday, shares of Five-Star Business Finance Limited edged higher to close at ₹535.2, rising by 0.19%. The equity traded within a modest range throughout the session, reaching a high of ₹538 after dipping to a low of ₹520.5.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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