UltraTech Cement Recommends Dividend of Rs 240 Per Share; Details of Tax Deduction at Source Announced
UltraTech Cement Limited has recommended a dividend payment for its shareholders following the Board meeting held on April 27, 2026. The proposed payout is set against the backdrop of comprehensive tax withholding provisions under the Income-tax Act, 2025, detailing specific rates and exemptions for resident and non-resident investors.The company has announced that the dividend, which will be paid to equity shareholders holding shares as at the record date (to be announced later), is subject to Tax Deducted at Source (TDS) in accordance with relevant tax legislation. The Board recommended a dividend of Rs 240 per equity share, against a face value of Rs 10 each, for the financial year ending March 31, 2026.
TDS Structure for Shareholders
The company provided a detailed breakdown of the TDS structure, which varies based on the shareholder's residential status and specific circumstances, including submissions of qualifying declarations.For resident shareholders, tax is deducted at source (TDS) under Section 393(1) [Table: S. No. 7] of the Act, at a rate of 10% on the dividend payable, unless the shareholder falls into one of the exempt categories or meets specific criteria.
Key provisions for resident shareholders include:
- NIL TDS: Resident individuals receiving up to Rs 10,000 in aggregate dividend during Tax year 2026-27 may qualify for nil deduction, provided they submit a duly filled and signed Form No. 121.
- Exemptions: Several categories are exempt from TDS if specific declarations and documents are provided, including insurance companies, Mutual Funds, Alternative Investment Funds (AIF) established in India, and Recognized provident or Approved superannuation funds.
For non-resident shareholders (including Foreign Institutional Investors and Foreign Portfolio Investors), the tax is withheld at 20% plus applicable surcharge and cess. Non-residents have the option to benefit from the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence, provided they supply necessary documentation such as a Tax Residency Certificate (TRC) and electronically filed Form 41.
Summary of TDS Scenarios
The company summarized the dividend payment structure post-TDS deduction, which is contingent upon the documentary evidence submitted by the shareholder:| Dividend Status | Applicable Rate | Conditions/Notes |
|---|---|---|
| NIL TDS | 0% | Resident shareholders receiving up to Rs 10,000 or those who submit Form No. 121 along with PAN card copy. |
| Standard Resident TDS | 10% | Applicable to resident shareholders upon submission of a valid PAN card copy. |
| Non-Linked PAN Status (Resident) | 20% | Applied if the shareholder does not provide or available a valid PAN card, or if the PAN is not linked with Aadhaar. |
| Standard Non-Resident TDS | 20% + Surcharge/Cess | Applicable to non-resident shareholders if relevant documentation is not provided. |
| Exempted Shareholders (Resident) | NIL / Lower Rate | Achievable upon submission of self-attested certificates corresponding to their category (e.g., insurance companies, AIF). |
Tax Consequences and Compliance
The company noted that tax deductions are subject to the completeness and satisfactory review of the submitted documents by management. In cases where the tax is deducted at a higher rate due to missing or defective documentation, shareholders may seek a refund when filing their income tax return. Shareholders were also advised to indemnify the company against any consequences arising from misrepresentation or inaccuracy in the information provided.ULTRACEMCO Stock Price Movement
As of 1:06 PM, shares of UltraTech Cement Limited are slipping by 0.98% in live trading, currently tracking at ₹11056 as the construction materials giant posts a ₹109.00 drop for the day. The stock trades on activity involving 169,400 shares, reflecting softening sentiment amid market movements.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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