DCW Limited has detailed the tax deduction at source (TDS) procedures applicable to its recommended final dividend of ₹0.20 per equity share for FY26. The Board of Directors approved the payout on May 5, 2026, subject to shareholder approval at the upcoming Annual General Meeting.

The company notified shareholders on September 1, 2026, regarding the withholding tax implications under the Income Tax Act, 2025. Dividends are taxable in the hands of shareholders, requiring the company to deduct TDS at prescribed rates before payment.

Dividend and Tax Details

The face value of each equity share is ₹2. The dividend will be paid to shareholders whose names appear in the Register of Members or depository records as on the record date. The payment timeline adheres to statutory requirements following AGM approval.

Shareholder Compliance

Shareholders must update their tax residential status, Permanent Account Number (PAN), and contact details with their depository participants or the Registrar and Transfer Agent (RTA), Bigshare Services Private Limited. For physical shareholders, this involves submitting forms ISR 1, ISR 2, ISR 3, and SH 13.

Resident Shareholders

For resident individuals, no TDS is deducted if the total dividend received in FY27 does not exceed ₹10,000 or if Form 121 is submitted. Otherwise, TDS is levied at 10% for valid PAN holders. A higher rate of 20% applies if the PAN is invalid, inoperative, or not linked with Aadhaar.

Resident non-individuals, including insurance companies, mutual funds, Alternative Investment Funds (AIFs), and New Pension System (NPS) trusts, may claim exemptions by submitting self-declarations and relevant registration certificates.

Non-Resident Shareholders

Non-resident shareholders face a withholding tax rate of 20% plus applicable surcharge and cess under domestic law. They may opt for beneficial rates under Double Tax Avoidance Agreements (DTAA) by submitting a Tax Residency Certificate (TRC), Form 41, and a self-declaration of beneficial ownership.

Submission Deadline

All tax-related documents, including PAN cards, Form 121, Form 41, and self-declarations, must be submitted to the RTA by September 15, 2026. Documents received after this date will be considered at the company’s sole discretion. Failure to provide complete documentation may result in TDS being deducted at the higher statutory rate.

Shareholders can claim refunds for excess tax deducted through their income tax returns. The company is not liable for taxes deducted based on incomplete records provided by the depositories or RTA.

Additional Updates

DCW Limited has also announced a special window for the re-lodgement of transfer deeds for physical shares lodged before April 1, 2019. This window runs from February 5, 2026, to February 4, 2027. Re-lodged shares will be issued in demat form and locked in for one year.

DCW has resumed full operations at its Dhrangadhra plant following a disruption caused by flood issues at the facility.

Operations restored at Dhrangadhra

The company confirmed the resumption of complete operational activity at the Dhrangadhra plant after the facility had been impacted by flood-related issues. The restoration of full operations marks a return to normal production capacity at the site.

Key development at a glance

The Dhrangadhra plant's return to full operations signals the resolution of the flood-related disruption that had previously affected the facility's functioning.