Jyothy Labs Limited Board Recommends Final Dividend of Rs. 3.50 Per Share for FY 2025-26
Jyothy Labs Limited announced on May 27, 2026, that its Board of Directors recommended a Final Dividend for the Financial Year 2025-26. The Board meeting was held on May 4, 2026.The company recommended a Final Dividend of Rs. 3.50 per equity share, with the face value of Re. 1/- each. This dividend represents a 350% return for the Financial Year 2025-26. The payment of the dividend will be made to shareholders holding equity shares on the record date, pending its approval at the ensuing 35th Annual General Meeting. The record date is yet to be announced.
Tax Deduction at Source (TDS) Implications
The company highlighted that the dividend declared and paid is taxable in the hands of the shareholders. Accordingly, deduction of tax at source (TDS) is mandatory, and the applicable rate depends on the shareholder's residential status and the documentation submitted.Shareholders must ensure that all necessary details, including PAN, KYC details (email, mobile number, and bank account details), and Nomination, are updated with the Registrar and Share Transfer Agent (RTA).
The tax deduction requirements are structured based on the shareholder category:
The TDS rate for resident shareholders varies based on their status and documentation:
| Category of Shareholder | Tax Deduction Rate | Key Exemptions and Requirements |
|---|---|---|
| Any resident shareholder | 10% | No deduction is applicable if: 1. Dividend income to an individual shareholder during FY 2026-27 does not exceed INR 10,000/-. 2. The shareholder is exempted from TDS and provides an attested copy of PAN and documentary evidence. |
| Submitting Form 121 | NIL | Applicable to Eligible Shareholders providing Form 121, provided all prescribed eligibility conditions are met. |
| Insurance Companies: Public & other Insurance Companies | NIL/lower tax | Requires self-declaration and evidence that provisions of section 393(4) are not applicable. |
| Corporation established by or under a Central Act exempt from income tax | NIL/lower tax | Requires self-declaration and evidence that the person is covered under section 393(5). |
| Mutual Funds | NIL/lower tax | Requires self-declaration and documentary evidence that the person is covered under section 393(5) and specific tax schedules. |
| Alternative Investment fund | NIL/lower tax | Requires self-declaration and documentary evidence that the person is covered by Notification No. 51/2015 and is established as Category I or Category II AIF. |
| New Pension System Trust | NIL/lower tax | Requires self-declaration and supporting documentary evidence. |
| Other resident shareholder without PAN/Invalid PAN/non-linking of Aadhar | 20% | If shares are held in demat mode and PAN is not updated, or if PAN is not valid/linked with Aadhar. |
For non-resident shareholders and Foreign Institutional Investors, the tax deduction rate is generally 20% or the Tax Treaty rate, whichever is lower (plus surcharge and cess, where applicable).
| Category of Shareholder | Tax Deduction Rate | Key Requirements |
|---|---|---|
| Foreign Portfolio Investors (FII, FPI) | 20% / Tax Treaty rate whichever is lower | Must submit a copy of PAN Card (if any), self-attested Tax Residency Certificate (TRC) for the Financial Year (April 1, 2026, to March 31, 2027), and mandatory filing of Form 41 online to claim treaty benefit. |
| Submitting Order under section 395(1) of the Act | Rate provided in the Order | Requires obtaining a lower/NIL withholding tax certificate from the Income Tax authorities. |
Shareholders holding shares under multiple accounts with a single PAN must be aware that the higher of the tax rates applicable to the status in which the shares are held will be considered for their entire holding across different accounts.
JYOTHYLAB Stock Price Movement
Today, Jyothy Labs Limited shares edged higher to close at ₹209.20, gaining 2.07% for the day. The stock traded on 794,381 shares, closing near its day high of ₹209.65.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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