UltraTech Cement Limited informed the exchanges regarding a shareholder communication on deduction of tax at source on dividend for FY2025-26. The board of directors at its meeting on April 27, 2026 recommended a dividend of Rs 240 per equity share for the financial year ended March 31, 2026.
The dividend of Rs 240 per share on equity shares of face value Rs 10 each is subject to shareholder approval at the annual general meeting. The dividend will be paid to eligible shareholders as of the record date, which UltraTech Cement will announce in due course.
Under the Income-tax Act, 2025, UltraTech Cement will deduct tax at source at the time of dividend payment. For resident shareholders, TDS will be deducted at 10% under Section 393(1) of the Act. Individual shareholders are exempt from TDS if the aggregate dividend distributed during tax year 2026-27 does not exceed Rs 10,000. Resident shareholders can submit Form 121 to avail nil or lower deduction.
Insurance companies, mutual funds, alternative investment funds, and other exempt categories can submit self-declarations to claim nil or lower TDS. Non-resident shareholders, including foreign institutional investors and foreign portfolio investors, will have tax withheld at 20% plus applicable surcharge and cess. Non-resident shareholders may claim beneficial rates under the Double Taxation Avoidance Agreement by submitting a valid Tax Residency Certificate, electronically filed Form 41, and a self-declaration of treaty eligibility.
UltraTech Cement noted that tax will be deducted at a higher 20% rate if the shareholder's PAN is not linked with Aadhaar. Shareholders were requested to update their residential status, PAN, email address, and bank account details with their depository participants or KFin Technologies for physical holdings.
Documents and declarations must be submitted by July 20, 2026. No communication on tax determination will be entertained after this date. Any claim for refund of excess tax deducted can be made at the time of filing income tax returns, UltraTech Cement stated.
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.