Ashapura Minechem has announced details regarding tax deduction on dividend payments to its shareholders. As per the provisions of the Income Tax Act, 1961, amended by the Finance Act, 2020, dividends paid or distributed after April 1, 2020, are taxable in the hands of the shareholders. The company has communicated the process of withholding tax from dividends payable to shareholders at the prescribed rates.
The tax deduction rates vary based on the residential status of the member and the documents submitted by them. A higher rate of TDS will be applicable if the shareholder is a “Specified Person” under section 206AB of the Income Tax Act, 1961.
For resident shareholders, the applicable rates and required documents are as follows:
| Particulars | Applicable Rate | Documents Required |
|---|---|---|
| With PAN | 10%* | Update/Verify PAN, KYC, Nomination details and residential status as per Income Tax Act, 1961. |
| Without PAN/ Invalid PAN/ Failed to Link PAN with Aadhar | 20% | Applicable if shareholder has not submitted PAN. |
| Submitting Order under Section 197 of the Income Tax Act, 1961 | Rate as provided in the Order | Lower/NIL withholding tax certificate obtained from tax authority. |
| An Insurance Company as specified under Sec 194 of the Income Tax Act, 1961 | NIL | Self-declaration that it has full beneficial interest with respect to the shares owned by it along with Self attested PAN and registration certificate. |
| Mutual Fund specified under clause (23D) of Section 10 of the Income Tax Act, 1961 | NIL | Self-declaration that they are specified Mutual Fund under Section 10 (23D) of the Income Tax Act, 1961 along with self-attested copy of PAN card and registration certificate. |
| Corporation established by or | NIL | Certificate of registration which indicates that it is a corporation established under central act and its income is exempt from income tax. |
| Alternative Investment Fund (AIF) established in India | NIL | Self-declaration that they are specified in Section 10 (23FBA) of the Act and established as Category I or II AIF under the SEBI regulations along with self-attested copy of PAN card and registration certificate issued by SEBI. |
| New Pension System Trust governed by Section 10(44) [sub-section (1E) of section 197A] | NIL | Self-declaration that they are governed by the provisions of section 10(44) [sub-section (1E) of section 197A] of the Act along with self-attested copy of PAN card and registration certificate. |
*However, no tax shall be deducted in the case of a resident individual shareholder, if: The total dividend amount to be received during the FY 2025-26 does not exceed INR 10,000; OR The shareholder provides duly signed Form 15G or Form 15H (as applicable) provided that all the prescribed eligibility conditions are met.
For non-resident shareholders, the applicable rates and required documents are as follows:
| Particulars | Applicable Rate | Documents Required |
|---|---|---|
| Any non-resident shareholder (including Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs)) | 20% (plus applicable surcharge and Tax cess) or Treaty rate, whichever is lower** | Update/Verify the PAN, KYC, Nomination details and the residential status as per Income Tax Act, 1961. Copy of Indian Tax Identification number (PAN). Tax Residency Certificate (TRC) obtained from the tax authorities. Form 10F duly filled and signed. Self-declaration from Non-resident, primarily covering the following: Non-resident is eligible to claim the benefit of respective tax treaty. Non-resident receiving the dividend income is the beneficial owner of such income. Dividend income is not attributable/effectively connected to any Permanent Establishment (PE) or Fixed Base in India. |
| Submitting Order u/s 197 (i.e. lower or NIL withholding tax certificate) | Rate provided in the Order | Lower/NIL withholding tax certificate obtained from tax authority. |
Shareholders who wish to claim beneficial or concessional rate of withholding tax need to submit the documents prescribed as above to avail such benefits. The company is not under obligation to apply the beneficial or concessional rates of withholding tax at the time of tax deduction/withholding on dividend amounts.
The company has also announced that the Board of Directors has recommended a Final Dividend of Re. 1.00/- per Equity Share of Rs. 2/- each for the Financial Year ended 31st March, 2025, subject to approval of the shareholders. The record date for determining entitlement of shareholders to receive Final dividend is Wednesday, 17th September, 2025.
The aforementioned documents (duly completed and signed) are required to be sent to the Company on cosec@ashapura.com with cc to rnt.helpdesk@in.mpms.mufg.com.
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