Divi's Laboratories Limited has informed the exchanges that its board of directors, at a meeting held on May 23, 2026, recommended a dividend of Rs 30 per fully paid-up equity share of face value Rs 2 each, representing 1,500 percent for the financial year ended March 31, 2026.
The dividend is subject to shareholder approval at the 36th annual general meeting scheduled for August 10, 2026. If approved, the payout will be distributed on or after August 14, 2026.
The company has fixed July 24, 2026 as the record date for determining eligibility for the dividend. The communication detailing the tax deduction at source on the dividend was sent to all shareholders on June 10, 2026.
As per the Income-tax Act, 2025, Divi's Laboratories will deduct tax at source on the dividend at applicable rates. For resident shareholders with a valid PAN, TDS will be at 10 percent, while those without a valid PAN or with an inoperative PAN due to non-linking with Aadhaar will face a 20 percent deduction. No TDS will apply if the total dividend to a resident individual does not exceed Rs 10,000.
Non-resident shareholders will face a withholding tax of 20 percent plus applicable surcharge and cess, though they may claim beneficial rates under applicable double taxation avoidance agreements by submitting a tax residency certificate and Form 41. Shareholders seeking lower or nil withholding must submit a certificate under Section 395 of the Act by July 24, 2026.
Divi's Laboratories has asked shareholders to update their bank account details with their depository participants for electronic dividend payments. Tax-related documents can be uploaded through the Kfintech portal by the July 24 deadline.
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.