PPAP Automotive Recommends Final Dividend of Rs. 1.5 per Share; Details on TDS Applicable
PPAP Automotive Limited has recommended a final dividend for the Financial Year (FY) 2025-26, subject to shareholder approval at the ensuing Annual General Meeting (AGM). The dividend is set at Rs. 1.5 per equity share, which represents 15% of the face value of the share, which is Rs. 10/- each.The Board of Directors had recommended this final dividend during a meeting held on May 11, 2026. The dividend payment will be disbursed within 30 days from the date of the AGM.
As dividends paid or distributed by a company are taxable in the hands of shareholders under the Income Tax Act, 2025, PPAP Automotive Limited must deduct tax at source (TDS) on the dividend payment, provided it is approved at the AGM.
The Company has issued communications to all registered shareholders detailing the TDS provisions and outlining the required documentation based on different residential status and shareholder categories.
Tax Deduction at Source (TDS) for Resident Shareholders
For resident individuals, no tax will be deducted if the total dividend paid during FY 2026-27 does not exceed INR 10,000/-.Shareholders are advised to take note of the varying TDS rates applicable based on their documentation status:
| Particulars | Required Declaration/Document | Withholding Tax Rate |
|---|---|---|
| Valid PAN updated in dematerialized form or with RTA in physical form, and no exemption sought. | N.A. | 10% |
| No / Invalid PAN provided. | Requirement for linking PAN with Aadhaar must be met. | 20% |
| Availability of lower/nil tax deduction certificate from the Income Tax Department. | Copy of PAN card and Lower tax withholding certificate. | Rate specified in the certificate |
TDS Rates for Non-Resident Shareholders
The TDS rates depend on the category of non-resident shareholders, as detailed below:| Category of Non-Resident Shareholder | Withholding Tax Rate |
|---|---|
| Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess) OR Treaty rate (whichever is beneficial) |
| Alternative Investment Fund - Category III or Retail Scheme/ Exchange Traded Fund located in IFSC | 10% (plus applicable surcharge and cess) |
| Other Non-resident Shareholders | 20% (plus applicable surcharge and cess) OR Treaty rate (whichever is beneficial) |
| Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area | 30% |
Important Compliance Deadlines
The company provided specific timelines for shareholders to submit necessary documentation to determine the correct TDS rate. Shareholders must submit required documents by September 12, 2026.Key requirements and deadlines include:
- Document Submission Deadline: All specified documents (e.g., PAN card copy, Tax Residency Certificate) must be submitted on or before Saturday, September 12, 2026.
- Tax Treaty Benefit: Non-residents seeking a lower TDS rate under a Double Taxation Avoidance Agreement (DTAA) must submit specific documentation, including the Tax Residency Certificate (TRC), within the specified period.
The company has also issued guidance regarding payment methods, noting that dividends to shareholders holding physical shares are mandated to be paid only through electronic mode, effective from April 1, 2024. Shareholders with physical folios are requested to update their banking and KYC details to ensure timely credit of the dividend.
PPAP Stock Price Movement
On Friday, shares of PPAP Automotive Limited edged higher, closing at ₹291.9 after gaining 0.09% during the trading session. The stock traded on a volume of 11,549 shares, having moved within an intraday range bounded by ₹283 and ₹295.3.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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