Pidilite Industries Announces ₹10/Share Special Interim Dividend

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26 Aug, 2025 12:21

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Pidilite Industries Limited has declared a special interim dividend of ₹10 per equity share for the financial year 2025-26. The decision was made during the board meeting held on August 6, 2025. The dividend will be paid to shareholders whose names appear in the Register of Members as of the record date, August 13, 2025.

The company has communicated to its shareholders regarding the tax deduction at source (TDS) on this dividend. According to the communication, dividends paid or distributed by a company on or after April 1, 2020, are taxable in the hands of the shareholders, and the company is required to deduct tax at source at the time of payment.

Pidilite Industries has provided a detailed communication to shareholders, outlining the applicable Tax Deduction at Source (TDS) provisions under the Income Tax Act for both Resident and Non-Resident shareholder categories.

Dividend Details

Tax Deduction for Resident Shareholders

For resident shareholders, tax is required to be deducted at source under Section 194 of the Act at a rate of 10% on the dividend amount, provided they have registered their valid Permanent Account Number (PAN). If shareholders do not have a valid PAN or if their PAN is inoperative, TDS will be deducted at a rate of 20% under Section 206AA of the Act.

No tax will be deducted if the total dividend amount received during the Financial Year 2025-26 does not exceed ₹10,000, or if the shareholder provides a valid Form 15G (for individuals) or Form 15H (for individuals above 60 years), provided all eligibility conditions are met.

Tax Deduction for Non-Resident Shareholders

For non-resident shareholders, taxes will be withheld in accordance with the provisions of Section 195 or Section 196D of the Act. The withholding tax rate is 20% plus applicable surcharge and cess on the dividend amount.

Non-resident shareholders have the option 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, they must submit a self-attested copy of their PAN card, Tax Residency Certificate (TRC), Form 10F, and a self-declaration of meeting treaty eligibility requirements.

Important Information for Shareholders

Pidilite Industries has specified that shareholders must update their records, including their tax residential status and PAN, with their relevant depositories. The company has also provided email addresses for submitting tax-related documents, with a deadline of August 13, 2025, to ensure appropriate TDS/withholding tax rates are applied.

The company clarified that it is not obligated to apply beneficial DTAA rates at the time of tax deduction and that the application of such rates depends on the completeness and satisfactory review of the documents submitted by the non-resident shareholder.

Shareholders are requested to ensure that their bank account details are updated in their demat accounts or physical folios to facilitate timely dividend credit. The company also noted that dividend payments for shareholders holding shares in physical mode will be made only through electronic mode, provided they have furnished their PAN, bank account details, and other required information.

This Communication is not exhaustive and does not purport to be 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.