ADF Foods Limited's Board of Directors, at its meeting held on May 14, 2025, recommended a final dividend of ₹0.60 per equity share for the Financial Year ended March 31, 2025. This translates to a 30% dividend on the face value of ₹2 per equity share. The proposed dividend is subject to the approval of shareholders at the upcoming 35th Annual General Meeting (AGM), scheduled for August 12, 2025.
The company has also issued a detailed communication to its shareholders regarding the deduction of Tax at Source (TDS) on this final dividend, in compliance with the provisions of the Income Tax Act, 1961, read with the Finance Act, 2020. As per the regulations, dividend paid or distributed by a company on or after April 1, 2020, is taxable in the hands of the shareholders, necessitating TDS at the time of payment.
| Particulars | Details |
|---|---|
| Dividend per share | ₹0.60 |
| Face Value per share | ₹2.00 |
| Dividend Percentage | 30% |
| Board Recommendation Date | May 14, 2025 |
| AGM Approval Date | August 12, 2025 |
| Record Date | August 6, 2025 |
| Payment Date | Within 30 days from declaration (post-AGM approval) |
Tax Implications for Shareholders
ADF Foods Limited has outlined the specific TDS rules applicable to different categories of shareholders:
For Resident Shareholders:
Unless specifically exempt, tax will be deducted at source under Section 194 of the Income Tax Act at a rate of 10% on the dividend amount, provided the shareholder's Permanent Account Number (PAN) is registered. However, if the PAN is not registered or not linked with Aadhaar, the TDS rate will be 20% as per Section 206AA of the Act.
No TDS will be applicable if the aggregate dividend distributed or paid to a resident shareholder by the company during a financial year does not exceed ₹10,000. Additionally, resident individuals can claim NIL TDS by submitting Form 15G (for those below 60 years of age) or Form 15H (for those 60 years and above), provided they meet the eligibility conditions. Shareholders must ensure all mandatory fields in these forms are accurately filled to avoid rejection.
Certain non-individual resident shareholders, such as Insurance Companies, Mutual Funds, Alternative Investment Funds (AIFs) established in India (Category I or II), and New Pension System Trusts, may be eligible for NIL or lower tax deduction. This requires the submission of a self-declaration confirming their exemption status, along with self-attested copies of relevant registration certificates and PAN cards. Shareholders who have obtained a valid certificate under Section 197 of the Act for a lower or NIL rate of deduction, or an exemption certificate from income tax authorities, must submit a self-attested copy of such certificate to the company.
For Non-Resident Shareholders:
Tax is required to be withheld in accordance with Section 195 and Section 196D of the Act. The standard withholding tax rate is 20% (plus applicable surcharge and cess) on the dividend amount.
Non-resident shareholders have the option to avail benefits under the Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence, if the DTAA provisions are more beneficial. To claim DTAA benefits, non-resident shareholders must provide specific documents, including a self-attested copy of their Indian PAN card (if any), a self-attested copy of the Tax Residency Certificate (TRC) from their country's tax authorities, and an e-filed Form 10F for the financial year 2025-26. A self-declaration confirming DTAA eligibility and beneficial ownership is also required. For Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), a self-attested copy of their SEBI registration certificate is necessary. Shareholders who are tax residents of Singapore must also furnish a letter from the competent authority or other evidence demonstrating the non-applicability of Article 24 (Limitation of Relief) under the India-Singapore DTAA. It is crucial that Form 10F is submitted in digital format, as other formats will not be considered for treaty benefits.
Important Compliance and Deadlines
Shareholders are advised that failure to link their PAN with Aadhaar will result in the PAN being deemed invalid or inoperative, leading to a higher TDS rate of 20% as per Section 206AA of the Act. The company will utilize the Income-tax department's functionality for this purpose.
For shareholders holding ordinary shares under multiple accounts with different statuses or categories but a single PAN, the highest applicable tax rate corresponding to any of the statuses will be considered for their entire holding under that PAN.
All necessary documents, including Form 15G/15H, DTAA-related documents, and other self-declarations, must be submitted to the company's Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited, or directly to the company at secretarial@adf-foods.com, on or before Wednesday, August 6, 2025. No communication regarding tax determination or deduction will be entertained after this deadline. The company will deduct TDS based on the records available with the RTA, and requests for revision of TDS returns will not be entertained. Shareholders whose tax is deducted at a higher rate due to non-receipt or defect in documents can claim an appropriate refund by filing their income tax return, if eligible.
The company will email soft copies of TDS certificates to registered email IDs after filing the quarterly TDS returns. Shareholders can also view the credit of TDS in Form 26AS, accessible from the e-filing portal of the Income Tax Department.
KYC Compliance for Physical Shareholders
In line with SEBI mandates, effective April 1, 2024, dividend payments to security holders holding shares in physical form will only be made through electronic mode. This requires shareholders to update their KYC details, including PAN, choice of nomination, contact details (postal address with PIN and mobile number), bank account details, and specimen signature, in the records of the company or RTA. Upon successful KYC updation, all declared dividends will be credited electronically. While the choice of nomination is not mandatory for dividend receipt, shareholders are encouraged to update it for smooth transmission of securities and to prevent accumulation of unclaimed assets. Investor Service Request Forms (ISR-1, ISR-2, ISR-3, SH-13, SH-14) for KYC updation are available on the company's and RTA's websites.
