UltraTech Cement Limited has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on dividends for the financial year 2025-26. The Board of Directors had recommended a dividend of ₹240 per equity share for the financial year ended March 31, 2026. This dividend, if approved at the upcoming Annual General Meeting (AGM), will be paid to shareholders of record on a date to be announced. The company will deduct tax at source on the dividend payment according to provisions of the Income-tax Act, 2025. For resident shareholders, the TDS rate will be 10%, unless exempt. For individuals, TDS will not apply if the aggregate dividend does not exceed ₹10,000. Shareholders can provide specific forms (like Form No. 121) and declarations to avail nil or lower TDS rates, with detailed procedures and requirements outlined for various categories including insurance companies, mutual funds, AIFs, and others. For non-resident shareholders, tax will be withheld at 20% (plus applicable surcharge and cess), unless they opt to be governed by Double Taxation Avoidance Agreement (DTAA) provisions. To avail DTAA benefits, non-residents must submit a PAN card, Tax Residency Certificate (TRC) valid for FY2026-27, electronically filed Form 41, and a self-declaration. The company emphasizes that failure to submit the required documents or link PAN with Aadhaar may result in higher tax deductions. Shareholders are urged to update their residential status, PAN, email, and bank account details with their depositories or the company's Registrar and Transfer Agent, KFin Technologies Limited. The deadline for updating details and submitting any communication regarding tax determination or deduction is July 20, 2026. The company also notes that if tax is deducted at a higher rate due to incomplete information, shareholders can claim a refund when filing their income tax returns, and the company will not be liable for such deductions.
