Welspun Corp Limited has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on dividend payouts for the Financial Year 2025-26. The Board of Directors, in their meeting on May 21, 2026, recommended a dividend of 100% per share, which translates to ₹5 per Equity Share of face value ₹5 each. This dividend, if approved at the upcoming Annual General Meeting (AGM), will be paid to shareholders on record. The communication details the applicable TDS provisions under the Income Tax Act for both Resident and Non-Resident shareholders. For resident shareholders, TDS is generally 10% if PAN is valid, increasing to 20% for invalid or unlinked PANs. However, resident individuals receiving dividends up to ₹10,000 are exempt, provided certain conditions are met. Special self-declarations and documentation are required for various resident non-individual entities like Insurance Companies, Mutual Funds, AIFs, and NPS Trusts to avail exemptions. For non-resident shareholders, the standard withholding tax is 20% (plus surcharge and cess), with provisions to avail beneficial Double Taxation Avoidance Treaty (DTAA) rates upon submission of necessary documents like PAN, Tax Residency Certificate (TRC), and Form 41. Shareholders are required to submit all relevant tax-related documents to the company or its Registrars & Transfer Agents by June 30, 2026, to ensure the correct withholding tax rate is applied. Failure to submit these documents by the deadline will result in tax deduction at the higher applicable rates. The company also advises shareholders to update their bank account details for direct dividend credit.
