Strides Pharma Science Limited's Board of Directors has recommended a final dividend of ₹4 per equity share, each with a nominal value of ₹10, for the Financial Year ended March 31, 2025. This dividend is subject to approval by shareholders at the upcoming Annual General Meeting (AGM) scheduled for Thursday, August 07, 2025. The company has set Tuesday, July 22, 2025, as the record date for determining the eligibility of shareholders for this final dividend.
| Particulars | Details |
|---|---|
| Dividend per share | ₹4.00 |
| Face Value per share | ₹10.00 |
| Financial Year | 2024-25 |
| Record Date | July 22, 2025 |
| AGM Date (for approval) | August 07, 2025 |
Dividend Details and Approval Process
The recommendation for the final dividend was made by the Board of Directors during their meeting held on May 22, 2025. The payment of this dividend is contingent upon the approval of shareholders at the Annual General Meeting. Shareholders whose names appear in the company's register as of the record date, July 22, 2025, will be eligible to receive the dividend once approved.
TDS Implications for Dividend Payout
In compliance with the Income-Tax Act, 1961, as amended by the Finance Act, 2020, dividends paid or distributed by a company on or after April 1, 2020, are taxable in the hands of the shareholders. Consequently, Strides Pharma Science Limited will deduct tax at source (TDS) at applicable rates based on the shareholder's category and tax residency status.
For Resident Shareholders
For resident shareholders with a valid Permanent Account Number (PAN), tax will generally be deducted at 10%. However, if a valid PAN is not furnished, or if the PAN is invalid, the TDS rate will be 20% as per Section 206AA of the Act.
* **Resident Individual Shareholders:** No tax will be deducted if the total dividend receivable from Strides during FY 2025-26 does not exceed ₹10,000. To avail exemption from TDS, eligible individuals must submit Form No. 15G (for resident individuals) or Form No. 15H (for resident individuals aged 60 years or more), provided all eligibility conditions are met. A lower deduction tax or nil tax certificate for FY 2025-26, if obtained from Income Tax authorities, should also be submitted. PAN is mandatory for Form 15G/15H submissions.
* **Resident Non-Individual Shareholders:** This category includes Mutual Funds, Insurance companies, AIFs (Category I/II), Resident Companies, Firms, HUFs, AOPs, Trusts, Local Authorities, and Artificial Juridical Persons. These entities should submit a self-declaration in the prescribed format along with documentary evidence, or a lower deduction tax certificate for FY 2025-26, if applicable.
For Non-Resident Shareholders
For non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), taxes are required to be deducted as per Section 195, Section 196D, and other applicable provisions of the Act. The standard TDS rate is 20% (plus applicable surcharge and cess) on the dividend amount.
Non-resident shareholders may opt to be governed by the provisions of the Double Taxation Avoidance Agreement (DTAA) between India and their country of tax residence, if more beneficial, read with the Multilateral Instrument (MLI). To avail DTAA benefits, shareholders must submit:
* Self-attested copy of PAN card allotted by Indian income tax authorities. If PAN is unavailable, alternative details like name, email ID, contact number, address in residency country, self-attested copy of Tax Residency Certificate (TRC), and Tax Identification Number of the residency country are required.
* Self-attested copy of TRC for FY 2025-26 (April 01, 2025, to March 31, 2026).
* Form No. 10F (valid for April 01, 2025, to March 31, 2026) electronically filed on the Indian Income Tax web portal.
* Self-declaration confirming eligibility for DTAA benefits.
* Copy of SEBI registration certificate for FIIs and FPIs.
* Any other document prescribed under the Act for a lower tax rate, if applicable.
The company is not obligated to apply beneficial DTAA rates if the submitted documents are incomplete or unsatisfactory. Shareholders may also provide a self-attested copy of a Lower/NIL withholding tax certificate obtained from Income Tax Authorities under Section 195/197 of the Act.
Shareholder Action Required and Important Dates
Shareholders are urged to verify and update their records, including residential status, PAN, Aadhaar number (for individuals), bank account details, email ID, and address, with their depository participant (for dematerialized shares) or the Registrar and Share Transfer Agent (RTA) (for physical shares) at the earliest. The company will rely on the details available in the Register of Members as of July 22, 2025, for TDS compliance.
For shareholders holding shares in physical form, dividend payments will only be made through electronic mode after furnishing PAN, nomination choice, contact details (including mobile number), bank account details, and specimen signature. Scanned copies of a covering letter, cancelled cheque leaf, and self-attested PAN card copy must be submitted to the company's RTA.
All required documents for TDS exemption or lower deduction, including Form 15G/15H, TRC, Form 10F, and self-declarations, must be uploaded with KFin Technologies Limited (KFintech), the RTA, at https://ris.kfintech.com/form15, mentioning "Strides Pharma Science Limited" in the subject line. These documents must reach the RTA by 5:00 PM IST on or before Tuesday, July 22, 2025. No communication or documents regarding tax determination or deduction will be entertained after this deadline.
Market Impact and Advisory
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 who do not submit the required details may still claim an appropriate refund by filing their income tax return, if eligible. Incomplete or unsigned forms and declarations will not be considered for exemption.
The company will arrange for TDS certificates to be sent to shareholders' registered email IDs once the dividend payment has been made. Shareholders can also view their TDS credit in Form 26AS, downloadable from the income-tax department's e-filing website.
This communication provides a summary of the Income-tax Act, 1961, provisions and does not constitute tax advice. Shareholders are strongly advised to consult their own tax advisors for personalized guidance regarding their tax matters.
