GNFC Recommends ₹21 Dividend Per Share; Shareholders Advised on TDS Procedures
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) has recommended a dividend of ₹ 21 per equity share, representing 210% of face value, following a Board meeting held on May 18, 2026. This dividend is for the financial year ended March 31, 2026, and is subject to tax deduction at source (TDS) as mandated by the Income Tax Act, 2025.The Board of Directors recommended the payment, which will be made to shareholders holding equity shares as of the Record date, which will be announced subsequently.
Dividend Details Summary
| Metric | Detail |
|---|---|
| Dividend Amount | ₹ 21/- per equity share |
| Payout Ratio | @210% |
| Face Value | ₹10/- each (fully paid up) |
| Financial Year End | March 31, 2026 |
Tax Deduction at Source (TDS) Requirements
As per the Income Tax Act, 2025, the dividend income is taxable in the hands of shareholders. The company must deduct TDS at the time of payment. Taxation rates and requirements vary based on the residential status and category of the shareholder.The applicable tax deduction provisions are summarized below:
| Shareholder Category | TDS Rate (Sec. 393(1) of IT Act) | Key Requirement for Exemption/Lower Tax |
|---|---|---|
| Resident Shareholders | 10% (with valid PAN) or 20% (without valid PAN) | Resident Individuals must meet criteria, such as total dividend not exceeding ₹ 10,000 for FY 2026-27 and submission of Form 121. |
| Resident Non-Individuals | Applicable based on status | Requires specific declaration documents (e.g., Insurance Company declaring full beneficial interest, Mutual Funds providing SEBI registration). |
| Non-Resident Shareholders (Domestic) | 20% (plus applicable surcharge and cess) | May be eligible for a lower/nil rate if they submit a certificate under Section 395(1) of the Act. |
Options for Non-Resident and International Investors
The company has outlined provisions for non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), with options governed by both domestic tax law and Double Tax Avoidance Agreements (DTAA).To avail DTAA benefits under Section 159 of the Act, non-resident shareholders are required to submit multiple documents, including:
- Self-attested copy of the PAN card allotted by Indian Income Tax authorities.
- Self-attested copy of a Tax Residency Certificate (TRC) for 2026-27 or calendar year 2026 from their country's tax authorities.
- Completion and filing of Form 41 electronically.
- A declaration confirming no Permanent Establishment in India as per the applicable Tax Treaty.
The company advises that it is not obligated to apply beneficial DTAA rates at the time of withholding, which will depend on the satisfactory review of the submitted documents.
Shareholder Action and Deadlines
All shareholders are instructed to ensure that their details regarding PAN, residential status, account category, email/postal address, and bank account details are complete and updated with their Depository Participant (DP) or KFin Technologies Limited, the Registrar & Share Transfer Agent (RTA).A critical deadline for submitting required documentation is August 15, 2026, at 5:00 PM. Shareholders must upload documents on the RTA's website or email them to the specified address to enable the accurate determination and deduction of the appropriate TDS/withholding tax rate. Documents received after this time will not be entertained.
GNFC Stock Price Movement
Gujarat Narmada Valley Fertilizers and Chemicals Limited shares slipped by 0.22% to close at ₹502.45 on Friday. The stock activity recorded a trading volume of 395,617 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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