Harsha Engineers Recommends Rs 1.5 Dividend Per Share for FY 2026
Harsha Engineers International Limited announced that its Board of Directors recommended a dividend payout of Rs 1.5 per equity share for the Financial Year ended March 31, 2026. The recommendation was made at a board meeting held on May 7, 2026. The company stated that the share has a face value of Rs 10 each.The dividend payout, effective for the Financial Year 2026-27, is subject to tax deduction at source (TDS), as dividend income paid on or after April 1, 2020, is taxable in the hands of shareholders.
TDS Implications for Shareholders
The Company outlined specific TDS requirements based on the residential status and documentation provided by the shareholder.For Resident Shareholders:
TDS rates depend on the shareholder's status and compliance with tax regulations.
| Shareholder Category | TDS Rate | Conditions for Applicable Rate |
|---|---|---|
| Individual (Tax Year Limit) | Nil | Aggregate total dividend does not exceed Rs 10,000 during the tax year. |
| Individual (Form 121) | Nil | Submission of duly filled and signed Form 121. |
| Other Resident Shareholders | 10% | Valid PAN provided/registered. |
| No/Invalid PAN | 20% | PAN is not provided, or registered PAN is inoperative due to non-linking with Aadhaar. |
For Non-resident Shareholders (Including FPI and FPI):
Tax is required to be withheld in accordance with the applicable provisions of law.
- General Rate: The standard TDS rate is 20% plus applicable surcharge and cess on the dividend payable.
- DTAA Benefit: Non-resident shareholders have the option to benefit from the Double Taxation Avoidance Agreement (DTAA) between India and their country of tax residence, provided the DTAA provisions are more beneficial.
Key Requirements for Non-Residents
To avail DTAA benefits, non-resident shareholders must provide specific documentation, including:- Self-attested copy of a PAN, if applicable.
- Self-attested copy of a valid Tax Residency Certificate (TRC) for the period April 1, 2026, to March 31, 2027.
- Completed Form 41, submitted in electronic format.
The Company emphasized that the application of beneficial DTAA rates is entirely dependent on the completeness and satisfactory review of all submitted documents.
The Company requested all shareholders to submit the necessary details and documentation to ensure the correct TDS rate is applied. This documentation is critical for the Company to determine the appropriate tax withholding rate before the dividend payout.
HARSHA Stock Price Movement
Harsha Engineers International Limited shares today slipped by 2.08% to settle at ₹390.5. The equity saw 138,725 shares traded 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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