Cosmo First Declares Rs 4/Share Final Dividend for FY25, Sets Record Date

Cosmo First Limited has announced a final dividend of ₹4 per equity share for the Financial Year 2024-25. This dividend, approved by the Board of Directors on May 20, 2025, is subject to shareholder approval at the upcoming 48th Annual General Meeting (AGM) scheduled for August 04, 2025. The company has set Monday, July 28, 2025, as the record date for determining eligible shareholders for the dividend payout.

Dividend Details

The Board of Directors of Cosmo First Limited, in their meeting held on May 20, 2025, recommended a final dividend of ₹4 per equity share, each with a face value of ₹10, for the financial year ended March 31, 2025. This recommendation awaits the formal approval of the company's shareholders at the 48th Annual General Meeting, which is slated for August 04, 2025. The record date, crucial for identifying shareholders entitled to receive the dividend, has been fixed as July 28, 2025.

TDS Implications on Dividend Payout

In line with the amendments introduced by the Finance Act, 2020, dividend income is now taxable in the hands of shareholders, and Cosmo First Limited is required to deduct tax at source (TDS) at prescribed rates. The applicable withholding tax rate will vary based on the shareholder's residential status and category, contingent upon the submission of necessary declarations and documents to the company.
**For Resident Shareholders:**
* **Standard Deduction:** For resident shareholders with a valid Permanent Account Number (PAN) updated with their Depository Participant or Registrar and Transfer Agent (RTA), a TDS rate of 10% will be applied.
* **Higher Deduction:** A higher TDS rate of 20% will be applicable if the shareholder has no PAN, an invalid PAN, or if their PAN is not linked with Aadhaar as required under Section 139AA of the Income-tax Act, 1961, as of the record date (July 28, 2025).
* **Lower/Nil Tax Deduction:** Shareholders who have obtained a lower or nil tax deduction certificate from the Income Tax Department under Section 197 of the Act can avail the rate specified in their certificate. The company will verify the status using the Compliance Check functionality provided by the Central Board of Direct Taxes (CBDT).
* **Nil TDS Conditions:** Certain resident shareholders may be eligible for nil TDS if they submit specific documents by July 25, 2025. These include:
* Individuals submitting Form 15G (for those under 60 years) or Form 15H (for those 60 years and above), provided they meet the prescribed conditions.
* Entities to whom Section 194 of the Act does not apply, such as LIC and GIC, upon providing documentary evidence.
* Entities covered under Section 196 of the Act, including Government, RBI, Mutual Funds specified under Section 10(23D), and corporations established by Central Act and exempt from Income Tax, with appropriate documentary evidence.
* Category I and II Alternative Investment Funds (AIFs) with their SEBI registration certificate.
* Recognised provident funds, approved superannuation funds, approved gratuity funds, and National Pension Scheme, with necessary documentary evidence.
* Any other entity entitled to TDS exemption, upon substantiating their entitlement.
**For Non-Resident Shareholders:**
* **Standard Deduction:** A TDS rate of 20% (plus applicable surcharge and cess) will be applied.
* **Beneficial Tax Treaty Rate:** Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), can avail a beneficial tax treaty rate if it is more advantageous than the standard 20% rate. To claim this benefit, they must provide:
* A copy of their PAN card.
* A copy of the Tax Residency Certificate (TRC) issued by the revenue authority of their country of residence for FY 2025-26 (covering April 01, 2025, to March 31, 2026).
* A self-declaration in Form 10F, filed electronically.
* A self-declaration confirming no permanent establishment (PE) or fixed base in India for FY 2025-26.
* FPIs must also provide their FPI registration number/certificate.
* **Lower/Nil Tax Deduction:** Similar to resident shareholders, non-residents can also submit a lower or nil tax deduction certificate issued by the Income Tax Department under Section 197 of the Act.
Shareholders are advised to email all required documents, such as Form 15G/15H, TRC, Form 10F, and other relevant certificates, to dividendhelp@cosmofilms.com on or before Friday, July 25, 2025. Communications received after this deadline will not be considered for tax determination.

Shareholder Instructions and Important Notes

Cosmo First Limited emphasizes that shareholders should ensure their bank account details are updated in their respective demat accounts or physical folios to facilitate timely electronic credit of the dividend. For shareholders holding shares in physical form, payment will exclusively be made through electronic mode, as mandated by SEBI circulars (SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 07, 2024, and SEBI/HO/MIRSD/POD-1/P/CIR/2024/81 dated June 10, 2024). Such shareholders must furnish their PAN, contact details (postal address with PIN and mobile number), bank account details, and specimen signature for their corresponding folios to the company or its RTA.
In cases where the dividend income is assessable to tax in the hands of a person other than the registered shareholder, the registered shareholder must furnish a declaration to the company in accordance with Rule 37BA(2) of the Income-tax Rules, 1962. This declaration should include the name, address, PAN, number of shares, and dividend amount of the person to whom TDS credit is to be given, along with reasons and relevant tax residency documents.
The company will provide TDS certificates upon request via investor.relations@cosmofirst.com. Shareholders can also download their tax credit statement (Form 26AS) from the Income Tax Department's website. It is important to note that if TDS is deducted at a higher rate, shareholders retain the option to file their income tax return and claim an appropriate refund. However, no claim shall lie against the company for any taxes deducted. Shareholders are strongly advised to consult their own tax advisors for specific tax implications arising from the receipt of the dividend, as this communication serves for general information purposes only.