Sudarshan Chemical Industries Recommends Final Dividend of Rs 5 Per Share for Financial Year 2025-26; Details on TDS Released
Sudarshan Chemical Industries Limited has announced a Final Dividend recommendation for its shareholders for the Financial Year 2025-26. The Board of Directors recommended the dividend, which is subject to approval at the company's ensuing Annual General Meeting (AGM). The company has also outlined comprehensive details regarding the Tax Deduction at Source (TDS) applicable on the dividend payment.The recommendation for the Final Dividend stands at Rs 5.00 per Equity Share of Face Value Rs 2/- each, reflecting a yield of 250% for the Financial Year ended March 31, 2026.
Dividend Timeline and Payment Schedule
A Board Meeting was held on May 25, 2026, during which the dividend recommendation was made. Shareholders are scheduled to approve this amount at the 75th Annual General Meeting (AGM) on Tuesday, August 18, 2026.The Record Date, which determines the eligible shareholders for the Final Dividend payment, is set for Tuesday, August 11, 2026. If approved by the AGM, the dividend payment will be made to eligible shareholders on or before September 8, 2026.
Tax Deduction at Source (TDS) Details
The company has provided detailed guidelines regarding TDS based on the residency and category of the shareholder, in line with the provisions of the Income Tax Act, 2025. The applicable rate depends on whether the shareholder is resident or non-resident and the documentation submitted.Key provisions for residents and non-residents related to dividend tax deduction are summarized below:
| Shareholder Category | Condition / Particulars | Applicable TDS Rate |
|---|---|---|
| Resident Individual | Total annual dividend does not exceed INR 10,000/- | Nil |
| Resident Individual | Valid Form 121 is furnished | Nil |
| Resident Individual | PAN is available | 10% |
| Resident Individual | PAN is not available/ invalid | 20% |
| Non-Resident (FII/FPI) | Availing DTAA benefits | 20% (plus surcharge and cess), or DTAA Rate (whichever is lower) |
Shareholder Obligations and Next Steps
The company specified that the TDS deduction will be applied based on the shareholder’s category and the documents provided. Shareholders are required to submit necessary forms, such as Form No. 121 for resident shareholders seeking nil TDS, by August 11, 2026.For residents, various exemptions apply depending on their status, including those covered under Section 393(4) (like LIC or GIC) and specified entities under Section 393(5). For non-resident shareholders, a Tax Residency Certificate issued by the tax revenue department of their home country is required to avail DTAA benefits.
The company noted that all shares held under multiple accounts with differing shareholder statuses but linked to the same PAN will be subject to the highest applicable TDS rate across those categories. Shareholders who are intermediaries or stockbrokers must also provide specific declarations as per Rule 203 of the Income-tax Rules, 2026.
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