SMS Pharmaceuticals Recommends Final Dividend of Rs.0.40 Per Share, Details TDS Structure for FY 2025-26
SMS Pharmaceuticals Limited announced the recommendation of a final dividend for its shareholders concerning the financial year ended March 31, 2026. The Board of Directors recommended a final dividend of Rs.0.40 (Rupees Forty paise) per equity share of face value Rs. 1 (Rupees one).The decision is subject to the approval of shareholders at the upcoming Annual General Meeting (AGM), scheduled for Wednesday, September 23, 2026. The company has set Wednesday, September 16, 2026, as the Record Date for determining member entitlement to the dividend. If approved by the members at the AGM, the final dividend will be paid after September 23, 2026, subject to Tax Deduction at Source (TDS).
The company provided detailed guidelines regarding the applicable TDS rates based on various shareholder categories as per the provisions of the Income Tax Act, 2025.
TDS Rates for Dividend Payment
The dividend payment will be made in electronic mode only and must account for the deduction of tax at source according to the status of the shareholder. The TDS rate depends significantly on whether the recipient is a resident individual, a non-resident, or other specified entities.Key withholding requirements based on the nature of the shareholders are detailed below:
| Shareholder Category | Tax Deduction Rate | Notes |
|---|---|---|
| Resident Individuals with valid PAN | 10% | Lower rates may apply if specific exemption documentation is provided. |
| Resident Individuals without PAN or discrepancies | 20% | Higher TDS rate applies in such cases as per the Act. |
| Resident Non-Individuals (e.g., Mutual Funds, AIF) | Nil | Eligibility depends on self-declaration and submission of required documentation. |
| Non-Resident Shareholders | 20% | This is subject to provision under domestic tax law or preferential rates under applicable Double Tax Avoidance Agreement (DTAA). |
Non-resident shareholders have the option to be governed by the DTAA between India and their country of residence, provided they submit necessary documentation including a self attested copy of the Tax Residence Certificate (TRC) for the relevant financial year.
The company requires investors to ensure timely submission of all relevant forms and certificates, such as Form 121 or tax declaration documents, to enable accurate TDS calculation before the payment is made. Shareholders who hold shares under multiple accounts must be aware that the higher applicable tax rate for their status will be considered against their entire holding regardless of account segregation.
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