Speciality Restaurants Recommends Dividend and Outlines Tax Deduction Requirements on Payout
Speciality Restaurants Limited has announced the recommendation of a dividend for its shareholders, outlining detailed tax deduction (TDS) rates and requirements in line with the provisions of the Income-tax Act, 2025.The Board of Directors of Speciality Restaurants Limited recommended a dividend of Rs. 1.00 per Equity Share of Rs. 10 each for the financial year ended March 31, 2026. The payment of this dividend remains subject to shareholder approval at the ensuing Annual General Meeting (AGM).
The company communicated that dividends paid or distributed are taxable in the hands of the shareholders under the Income-tax Act, 2025, as amended by the Finance Act, 2026. Consequently, the company is required to deduct tax at source (TDS) where applicable upon payment of the dividend, if declared at the ensuing Annual General Meeting.
Shareholders are advised that the TDS rate may vary based on their residential status and the documents submitted to the company. The company provided a comprehensive breakdown of TDS rates for various categories of shareholders.
Tax Deduction Details by Shareholder Category
The tax deduction rate depends heavily on whether the shareholder is resident or non-resident, as well as the specific category under which they fall.Resident Shareholders:
| Category of Shareholder | Tax Deduction Rate | Key Requirements/Notes |
|---|---|---|
| Any Resident Shareholder (with PAN) | 10% | Update/Verify PAN and residential status with depositories or RTA (MUFG Intime India Private Limited). |
| Any Resident Shareholder (without PAN or Invalid PAN) | 20% | Requirements depend on the dividend amount relative to INR 10,000/-. |
| Submitting Form 121 | NIL | Eligible individual shareholders must submit Form 121 and fulfill prescribed conditions; PAN is mandatory. |
| Insurance Companies / Public & Other Insurance Companies | NIL | Must provide self-declaration with supporting documents. |
Non-Resident Shareholders:
| Category of Shareholder | Tax Deduction Rate | Key Requirements/Notes |
|---|---|---|
| Any Non-resident Shareholder (excluding FIIs/FPIs) | 20% (+ surcharge and cess) | Can opt for a reduced rate under a Double Taxation Avoidance Agreement, provided specific documents are submitted. |
| FIIs / FPIs | 20% (+ surcharge and cess) | Requires providing necessary declarations and updating PAN and legal entity status with the RTA. |
Documentation Deadlines and Compliance
The company noted that all shareholders must ensure their details are updated, as the recording of a valid Permanent Account Number (PAN) for the registered folio/DP ID is mandatory. In the absence of a valid PAN, TDS will be deducted at the higher rate of 20%.Shareholders were informed about various options for claiming tax exemptions or nil deduction through the submission of prescribed forms and declarations.
The deadline for updating documents to enable the company to determine and deduct the appropriate TDS/withholding tax rate is Monday, August 31, 2026, at 11:59 p.m. (IST). Shareholders are advised that no communication or documents received after this deadline will be considered for tax determination.
SPECIALITY Stock Price Movement
Speciality Restaurants Limited shares today slipped by 0.31% to settle at ₹137.73, closing lower after trading in the equity market. The stock saw a total traded volume of 52,855 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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.