Acutaas Chemicals Announces ₹1.50/Share Dividend for FY25

For resident shareholders, tax will be deducted at source (TDS) under Section 194 of the Act at a rate of 10% on the dividend amount, unless exempt under any provisions of the Act. However, TDS will not apply if the aggregate dividend distributed/paid to them by the company during the financial year does not exceed ₹10,000.

To claim exemption from TDS, resident shareholders can provide Form 15G (for all individuals) or Form 15H (for individuals above 60 years), provided they meet the eligibility conditions. Shareholders must ensure that all fields in the form are completed; otherwise, the company may reject the submission.

NIL or lower tax rates will be applied to dividend payments for certain resident shareholders upon submission of self-declarations, including:

• Insurance companies: A declaration stating that the provisions of Section 194 of the Act are not applicable, along with a self-attested copy of the registration certificate and PAN card.


• Shareholders covered under section 196: A declaration by shareholders covered under section 196 of the Act, such as Government, RBI, and Mutual Funds specified under section 10(23D), corporations established by Central Act and exempt from Income Tax, along with self-attested copies of registration documents and PAN card.


• Alternative Investment Fund (AIF) established in India: A declaration that the shareholder is eligible for exemption under section 10(23FBA) of the Act and is established as Category I or Category II AIF under SEBI regulations, along with copies of self-attested registration documents and PAN card.


• New Pension System Trust covered under section 197A(1E): Declaration along with self-attested copy of documentary evidence supporting the exemption and self-attested copy of PAN card.


• Other shareholders exempted from TDS provisions under any CBDT circular or notification: Declaration along with self-attested copy of documentary evidence supporting the exemption and self-attested copy of PAN card.


• Shareholders who have provided a valid certificate issued under section 197 of the Act for lower/nil rate of deduction or an exemption certificate issued by the income tax authorities along with Declaration.


• Recognized provident funds, approved superannuation funds, and approved gratuity funds: TDS deducted at Nil rate but subject to necessary documentary evidence as per Circular No. 18/2017 issued by Central Board of Direct Taxes (CBDT) along with a self-attested copy of the PAN card.


• Any resident shareholder exempted from TDS deduction as per the provisions of the Act or by any other law or notification: TDS deducted at Nil rate but subject to necessary documentary evidence substantiating exemption from deduction of TDS along with a self-attested copy of the PAN card.

For non-resident shareholders (including Foreign Portfolio Investors), tax is required to be withheld according to Sections 195 and 196D of the Act at applicable rates. The tax shall be withheld at 20% (plus applicable surcharge and cess) on the dividend amount. However, under Section 90, non-resident shareholders can opt to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence, if beneficial.

To avail DTAA benefits, non-resident shareholders must provide:

• Self-attested copy of PAN card, if any, allotted by Indian Income Tax Authorities.


• Self-attested copy of Tax Residency Certificate (TRC) from the tax authorities of their country of residence.


• E-filed Form 10F, filed electronically on the Indian Income Tax web portal pursuant to Notification no. 03/2022 dated July 16, 2022.


• Self-declaration by the non-resident shareholder meeting DTAA eligibility requirements and satisfying beneficial ownership requirements.


• For Foreign Portfolio Investors/FII, self-attested copy of SEBI registration certificate.


• Self-declaration for non-existence of permanent establishment/fixed base in India and eligibility to Tax Treaty benefit (of FY 2025-26 or calendar year 2026).


• For shareholders tax resident in Singapore, a letter issued by the competent authority or other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under the India-Singapore Double Taxation Avoidance Agreement (DTAA).

The application of the beneficial DTAA rate depends on the completeness and satisfactory review by the Company of the documents submitted by non-resident shareholders and meeting the requirements of the Act and applicable DTAA. The self-declaration should be addressed to the Company and in the same format as attached. Without this, the Company is not obligated to apply the beneficial DTAA rate at the time of tax deduction on dividend.

As per Section 206AB of the Act, the rate of TDS at 10% under Section 194 is subject to the provisions of Section 206AB, which provides for TDS in respect of non-filers of income-tax returns. According to Section 206AB, tax must be deducted at the highest of the following rates for payments to specified persons:

• Twice the rate specified in the relevant provision of the Act; or


• Twice the rate or rates in force; or


• At the rate of 5%.

To summarise, dividend will be paid after deducting tax at source as under:

• NIL for resident shareholders receiving dividend up to ₹10,000 or those who submit Form 15G/Form 15H (as applicable) along with a self-attested copy of their PAN card, if accepted by the Company.


• 10% for other resident shareholders if a copy of their PAN card is provided/available.


• 20% for resident shareholders if a copy of their PAN card is not provided/not available/not linked with Aadhaar Number (Inoperative PAN).


• Tax will be assessed based on the documents submitted by non-resident shareholders.


• 20% plus applicable surcharge and cess for non-resident shareholders if the relevant documents are not submitted.


• Lower/NIL TDS on submission of a self-attested copy of the valid certificate issued under section 197 of the Act.

These rates are subject to the applicability of Section 206AB of the Act.

If tax on dividend is deducted at a higher rate due to the absence or defect in any of the required details/documents, shareholders can claim a refund of the excess tax deducted by filing their income tax return. No claim shall lie against the Company for such taxes deducted.

Shareholders holding shares in dematerialized mode are requested to update their records, including tax residential status, permanent account number (PAN), registered email addresses, and mobile numbers, with their relevant depositories through their depository participants. Shareholders are also requested to furnish these details to the Company's registrar and share transfer agent, MUFG Intime India Private Limited. The Company is obligated to deduct tax at source (TDS) based on the records available with the RTA, and no request for revision of the TDS return will be entertained.

The aforementioned documents should be uploaded before September 15, 2025, with MUFG Intime India Private Limited, the Registrar and Transfer Agent.

Shareholders are also requested to submit/update their bank account details with their Depository Participant or register at the link of RTA.

The Company will issue a soft copy of the TDS certificate to its shareholders through email registered with the Depository Participant / RTA post payment of the dividend.

The Company will use the mechanism prescribed by the Income Tax Department to verify if a shareholder is a 'specified person' under Section 206AB of the Income Tax Act, and based on the result provided, the Company will apply higher rates under Section 206AB of the Income Tax Act on those shareholders who are covered as 'specified person' under Section 206AB of the IT Act.

Determination of withholding tax rate is subject to necessary verification by the Company of the shareholder details as available with the Depository Participant in case shares are held in dematerialized form; or RTA in case shares are held in physical form as on the Record Date, and other documents available with the Company/RTA.

Shareholders holding shares under multiple accounts under different residential status/category and single PAN, may note that, higher of the tax rate as applicable to different residential status/category will be considered for their entire shareholding under different accounts.

The documents furnished by the shareholders (such as Form 15G/15H, Form 10F, Self-Attested Declaration etc.) shall be subject to review and examination by the Company before granting any beneficial rate or NIL Rate. The Company reserves the right to reject the documents in case of any discrepancies or the documents are found to be incomplete.

In case withholding tax is deducted at a higher rate, an option is still available with the shareholder to file the return of income and claim an appropriate refund. No claim shall lie against Company for any taxes deducted by the Company.

In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided by the shareholder, the shareholder will be responsible to indemnify the Company and also, provide the Company with all information/documents and co-operation in any tax proceedings.

This Communication is not exhaustive and does not purport to be a complete analysis or listing of all potential tax consequences in the matter of dividend payment. Shareholders should consult their tax advisors for requisite action to be taken by them.