AGI Infra details TDS norms for ₹0.20 per share final dividend for FY26
- Final dividend of ₹0.20 per share recommended for FY26 with record date September 23, 2026
- Resident shareholders face 10% TDS unless dividend income is below ₹10,000 or exemptions apply
- Non-residents subject to 20% TDS plus surcharge, reducible via DTAA benefits with valid documents
- Deadline for submitting tax exemption documents is Wednesday, September 30, 2026
*this image is generated using AI for illustrative purposes only.
AGI Infra Limited has issued a communication to shareholders regarding Tax Deduction at Source (TDS) on its final dividend of ₹0.20 per equity share for the financial year ended March 31, 2026. The Board of Directors recommended this payout, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The record date for determining entitlement was fixed as Wednesday, September 23, 2026.
The company stated that dividend payments are taxable in the hands of shareholders under the Income-tax Act, 2025. Consequently, AGI Infra is mandated to deduct tax at source during the payment process. The applicable TDS rate varies significantly based on the residential status of the shareholder and the documentation submitted to the company or its Registrar and Transfer Agent, Bigshare Services Private Limited.
TDS implications for resident shareholders
For resident shareholders, the standard TDS rate is 10% under Section 393(1) read with Section 393(4) of the Act. However, no TDS deduction will apply if the total dividend received from the company does not exceed ₹10,000 in a financial year for resident individuals. Higher deductions may apply if PAN details are invalid, inoperative, or not linked with Aadhaar.
Shareholders can claim a nil TDS rate by submitting specific declarations and documents by Wednesday, September 30, 2026. Exemptions are available for entities such as LIC, GIC, mutual funds, Category I and II Alternate Investment Funds, and New Pension System (NPS) trusts.
| Shareholder Category | Applicable TDS Rate | Required Documentation |
|---|---|---|
| Resident individual (dividend > ₹10,000) | 10% | Valid PAN linked with Aadhaar |
| Resident individual (dividend ≤ ₹10,000) | Nil | Automatic exemption |
| Invalid/Inoperative PAN | 20% | None (higher rate applies) |
| LIC, GIC, Mutual Funds, AIFs | Nil | Self-declaration and SEBI registration proof |
| Lower withholding certificate holder | As per certificate | Copy of certificate and PAN |
Withholding tax for non-resident shareholders
Non-resident shareholders are subject to TDS under Section 393(2) of the Act. The standard rate is 20% plus applicable surcharge and cess. However, beneficial rates under Double Taxation Avoidance Agreements (DTAA) may apply if the shareholder submits valid Tax Residency Certificates, Form 41, and self-declarations regarding beneficial ownership.
Failure to furnish these documents by the deadline will result in TDS deduction at the standard domestic rate. For Indian branches of foreign banks, the rate is 35% plus surcharge and cess, unless a lower tax deduction certificate is provided.
Key deadlines and compliance steps
To ensure correct tax determination, shareholders must update their records and submit necessary tax documents by Wednesday, September 30, 2026. Communications received after this date will not be considered for TDS calculation. Documents can be uploaded via the Bigshare Services website or emailed to designated addresses including info@agiinfra.com and cs@agiinfra.com.
What the numbers show
The divergence between the standard 10% TDS for residents and the potential 20% rate for those with invalid PANs highlights a significant compliance dependency. While the dividend amount of ₹0.20 per share is modest, the effective yield for shareholders can be reduced by up to 50 percentage points depending on their adherence to PAN-Aadhaar linking requirements. This underscores that administrative compliance, rather than just market performance, dictates the net cash flow received by retail investors in this instance.
Historical Stock Returns for AGI Infra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.54% | -0.60% | -8.24% | -14.41% | +6.88% | +198.79% |
How might the strict PAN-Aadhaar linking requirement for dividend exemptions influence AGI Infra's retail shareholder base composition in upcoming quarters?
Will the implementation of the Income-tax Act, 2025 lead to a broader trend of increased administrative compliance costs for smaller listed companies managing dividend payouts?
How could the significant TDS rate disparity for non-resident shareholders impact foreign institutional investor sentiment toward mid-cap Indian infrastructure stocks?
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