Punjab Chemicals Recommends Final Dividend of Rs 3 per Share for FY 2025-26; Outlines TDS Structure

Punjab Chemicals Recommends Final Dividend of Rs 3 per Share for FY 2025-26; Outlines TDS Structure​

Punjab Chemicals & Crop Protection Limited has announced a recommended final dividend for the financial year ended March 31, 2026. The Board of Directors had proposed a dividend amounting to 30% or Rs 3.00 per equity share, against which the company plans to pay, subject to approval at the forthcoming Annual General Meeting (AGM).

The dividend is based on a face value of Rs. 10/- per equity share. The company issued a communication to shareholders detailing the process for withholding tax on the dividend payment in accordance with relevant sections of the Income-tax Act, 2025.

Tax Deduction at Source (TDS) Requirements​

The company clarified that TDS on the dividend payments must be deducted at applicable rates as prescribed by the law, effective April 1, 2026. The withholding tax rate is dependent on the residential status and category of the shareholder, along with the documents submitted to Punjab Chemicals & Crop Protection Limited (PCCL).

The company specified that no tax will be deducted for resident individual shareholders if the total dividend paid during Tax Year (TY) 2026-27 does not exceed Rs.10,000/-.

The TDS rates and required declarations vary significantly across resident and non-resident categories:

Detailed TDS Guidelines for Resident Shareholders​

PCCL provided detailed stipulations for resident shareholders, outlining three main categories of withholding tax:

• 10% Rate: Applicable to those with a Valid PAN updated with the Depository Participant or Registrar and Transfer Agent (RTA).
• 20% Rate: Applied where there is No/Invalid PAN in dematerialized form or physical form without seeking exemption.
• Lower Tax Rate: Available upon submission of a lower tax withholding certificate issued by the Income Tax Department under section 395(1) of the Act.

For certain resident shareholders, such as specific Trusts or institutions (e.g., LIC, GIC), nil TDS is applicable provided they submit required documentation, including self-declarations and supporting evidence to the company/RTA.

Non-Resident Shareholder Requirements​

The tax deductible at source structure for non-resident shareholders includes:

• Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs): TDS is set at 20% (plus applicable surcharge and cess) or the beneficial tax treaty rate. Shareholders are required to submit a Tax Residency certificate and mandatorily provide digital Form 41 for the period April 1, 2026, to March 31, 2027.
• Alternative Investment Fund - Category III in IFSC: The withholding tax rate is set at 10% (plus applicable surcharge and cess).
• Other Non-Resident Shareholders: These shareholders face a rate of 20% (plus surcharge and cess) or the beneficial tax treaty rate, provided they submit necessary documentation including Form 41.

The company noted that all documents furnished by shareholders are subject to review and examination by PCCL before any beneficial rate is granted.

PUNJABCHEM Stock Price Movement​

Shares of Punjab Chemicals & Crop Protection Limited are edging higher to ₹1001.8 as of 11:51 AM, gaining 0.34% in live trading. The stock trades on a volume of 2,132 shares, showing steady upward momentum during the session.