Blue Star Limited's board at its meeting held on May 6 recommended a final dividend of Rs 8.5 per equity share of face value Rs 2 each for the financial year ended March 31, 2026. The dividend is subject to approval by shareholders at the ensuing annual general meeting.
Friday, July 17, 2026, has been fixed as the record date for determining member entitlement to the final dividend. The AGM is scheduled for Thursday, August 6, 2026. The dividend, if approved, will be paid after August 6, 2026, subject to tax deduction at source.
Blue Star Limited on June 5 sent an email communication to all shareholders whose email IDs are registered with Blue Star Limited or depositories. The communication details the process and documentation required for claiming tax exemption on the dividend. The information has also been made available on Blue Star Limited's website.
Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, requiring Blue Star Limited to deduct tax at source. Resident individual shareholders with a valid PAN face a 10 percent TDS rate, while those without a valid PAN or with a PAN discrepancy face a 20 percent rate. Resident non-individual shareholders such as insurance companies, mutual funds, and alternative investment funds may claim exemption upon submitting the required declarations and documentation.
Non-resident shareholders are subject to a 20 percent TDS rate under domestic tax law, plus applicable surcharge and cess. They have the option to claim more beneficial rates under applicable Double Tax Avoidance Agreements by submitting a tax residence certificate and filing Form 41 online.
Shareholders must submit all tax-related documents by Friday, July 10, 2026, for Blue Star Limited to determine the appropriate withholding tax rate. Any communication received after this date will not be considered. The dividend payment will be made only in electronic mode.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.