Garware Technical Fibres Ltd has communicated the tax deduction at source (TDS) provisions for the final dividend of ₹1 per share recommended for the financial year 2025-26. The dividend applies to 9,76,48,345 equity shares of ₹10 each, subject to shareholder approval at the ensuing Annual General Meeting. The company will deduct tax at source in accordance with the Income Tax Act, 2025, before making the payment via electronic mode.

The Board of Directors approved the recommendation during a meeting held on May 20, 2026. Shareholders must ensure their bank details and KYC compliance are updated to facilitate timely credit. The record date for dividend eligibility will be announced later.

TDS Rates for Resident Shareholders

The applicable TDS rates vary based on the shareholder category and documentation provided. Resident individuals with a valid PAN are subject to a 10% TDS, though no tax is deducted if the total dividend does not exceed ₹10,000 or if Form 121 is submitted. Depositories have enabled electronic submission of Form 121 for demat holdings via CDSL or NSDL platforms. Individuals without a valid PAN or with discrepancies will face a 20% TDS.

TDS Provisions for Non-Resident Shareholders

Non-resident shareholders are subject to a 20% TDS plus applicable surcharge and cess, unless they provide a certificate under Section 395(1) for lower or nil withholding. Alternatively, shareholders may opt for benefits under the Double Tax Avoidance Agreement (DTAA) if more favorable. To claim DTAA benefits, non-residents must submit a Tax Residence Certificate, file Form 41 online, and provide a self-declaration regarding treaty eligibility.

Shareholders holding shares under multiple accounts with different statuses but a single PAN should note that the highest applicable tax rate will be considered for their entire holding. The company will determine the TDS rate based on information available with the Registrar and Transfer Agent (RTA) and Depository Participants in the absence of specific documents.

Submission Deadline and Compliance

Shareholders must upload all necessary documents, such as Form 121, self-declarations, and exemption certificates, to the RTA portal by August 27, 2026, at 5:00 p.m. IST. Ambiguous, incomplete, or unsigned submissions will be rejected, and the company will not consider communications received after this deadline. Documents can be uploaded via the RTA portal link provided in the communication.

The company emphasized that it is not obligated to apply beneficial DTAA rates at the time of withholding if the documentation is incomplete or unsatisfactory. Shareholders can view their tax credit by logging into the TRACES portal or the Income Tax Department's e-filing website. In cases where tax is deducted at a higher rate due to missing documents, shareholders may claim a refund while filing their income tax returns.

Promoter Vayu Ramesh Garware and persons acting in concert (PAC) hold 5,29,70,480 shares, representing 53.36% of Garware Technical Fibres Limited as on March 31, 2026. The group confirmed that no encumbrance was created, directly or indirectly, on these shares during the financial year 2025-26. This disclosure was submitted to the stock exchanges under Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Vayu Ramesh Garware, the primary promoter, holds 6,157,400 shares, accounting for 6.20% of the total share capital. The majority of the stake is held by promoter group entities, with Garware Capital Markets Limited holding the largest portion at 1,82,01,250 shares (18.34%). Other significant holdings include VMIR Investment Private Limited and VRG Investments Pvt Ltd, holding 4.63% and 4.44% respectively.

Shareholding Breakdown

The following table details the shareholding pattern of the promoter and PACs:

The filing, signed by Vayu R. Garware, was addressed to the Corporate Relationship Department of BSE Limited and The National Stock Exchange of India Ltd. The declaration confirms the absence of any liens or charges on the promoter group's holdings for the specified period.