VA Tech Wabag Recommends Final Dividend of INR 5 Per Share, Detailing TDS Implications for Shareholders
VA Tech Wabag Ltd announced the recommendation of a Final Dividend of INR 5.00 per Equity Share, following a meeting held by its Board of Directors on May 21, 2026. The dividend is calculated based on an equity share face value of INR 2/- each, representing a rate of 250%.The payment of the final dividend remains subject to the approval of members at the forthcoming 31st Annual General Meeting (AGM), which is scheduled for August 12, 2026.
Dividend Payment Details and Tax Deduction at Source (TDS)
The Company communicated that the dividend income will be taxable in the hands of shareholders, effective from April 01, 2020, as per the provisions of the Income-tax Act, 2025, as amended by the Finance Act, 2026. Shareholders are advised to note the specific TDS implications based on their resident or non-resident status.The record date for determining eligibility for dividend payment is July 17, 2026, and the final dividend is scheduled to be paid to eligible members on or before September 10, 2026, if approved.
Tax Deduction Guidelines for Shareholders
VA Tech Wabag provided detailed guidelines regarding TDS deduction for both resident and non-resident shareholders.Resident Shareholders:
- TDS will be deducted at 10% on the dividend amount if the shareholder is a resident individual and the total dividend received in a financial year exceeds INR 10,000/-, provided a valid PAN has been registered with the Depository Participant or RTA. For all other categories of resident shareholders, tax will be deducted at the prescribed rate without a threshold limit.
- TDS will be 20% if a valid PAN has not been registered by the shareholder.
- A resident individual shareholder who possesses a valid PAN and is not liable to pay income tax can apply for exemption from TDS by submitting Form No. 121.
Non-Resident Shareholders:
- TDS will be applied at 20% (plus applicable surcharge and cess) or the Tax Treaty Rates, whichever rate is lower.
- Non-resident shareholders seeking to benefit from Double Taxation Avoidance Agreement (DTAA) rates must submit necessary documentation, including a No Permanent Establishment and Beneficial Ownership Declaration, along with other required documents.
Summary of TDS Requirements
The following table summarizes the key requirements regarding tax deduction at source:| Shareholder Category | Tax Deduction Rate (Standard) | Condition for Reduced Rate / Exemption | Action Required for Benefit Claim |
|---|---|---|---|
| Resident Individual | 10% or 20% | Total dividend exceeds INR 10,000/ and valid PAN is registered with RTA. | Submit Form No. 121. |
| Resident Individual (No Registration) | 20% | N/A | N/A |
| Non-Resident Shareholder | 20% (plus surcharge & cess) or Treaty Rate | Providing required Tax Treaty documents (e.g., No Permanent Establishment Declaration). | Submit required beneficial ownership documentation by the deadline. |
Shareholders who wish to claim exemptions or benefit from treaty rates must submit their relevant documents and declarations to VA Tech Wabag Ltd or Cameo Corporate Services Ltd (the RTA) on or before Monday, July 20, 2026, at 11:59 P.M. (IST).
The company noted that for shareholders operating through custodial entities, a declaration containing the beneficial owner's details must also be furnished by the specified deadline to ensure correct tax deduction and remittance.
WABAG Stock Price Movement
VA Tech Wabag Limited finished today by climbing 0.34% in post-market trading, settling at ₹2099.10 after gaining ₹7.10. The stock saw robust interest with 789,944 shares transacted as it traded near the level of its 52-week high.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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