Indo Borax recommends ₹40 dividend, sets tax document deadline
Indo Borax & Chemicals Limited recommended a ₹40 per share dividend, split into a final dividend of ₹10 and a special dividend of ₹30, pending AGM approval on July 28, 2026. The company detailed TDS rates under the Income-tax Act, 2025, noting exemptions for resident shareholders with dividend income up to ₹10,000. Shareholders must submit required tax documents by July 20, 2026, to ensure correct tax deduction.
*this image is generated using AI for illustrative purposes only.
Indo Borax & Chemicals Limited has recommended a dividend of ₹40 per equity share, comprising a final dividend of ₹10 and a special dividend of ₹30, subject to approval by shareholders at the Annual General Meeting on July 28, 2026. The company informed shareholders that tax will be deducted at source (TDS) on the dividend payout in accordance with the Income-tax Act, 2025, effective from April 1, 2026. The applicable withholding tax rate varies based on the residential status of the shareholder and the documents submitted to the company.
For resident shareholders, no tax will be deducted if the total dividend income during the Tax Year 2026-27 does not exceed ₹10,000. A TDS rate of 10% applies if a valid PAN is updated with the Depository Participant or Registrar and Transfer Agent (RTA), while a rate of 20% applies if the PAN is invalid or not available. Shareholders can avail of a lower or nil deduction rate by submitting a valid lower tax withholding certificate issued by the Income Tax Department under section 395(1) of the Act.
Resident shareholders seeking nil tax deduction must submit specific documents, such as Form 121 for individuals or self-declarations for exempt entities like LIC, GIC, and Business Trusts. Category I and II Alternative Investment Funds (AIFs) must provide a self-declaration and registration certificate to claim exemption under Schedule V to Section 11 of the Act. Recognized Provident Funds and the National Pension Scheme require valid documentary evidence as specified by the CBDT.
Non-resident shareholders face different withholding rates. Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) are subject to a 20% rate plus surcharge and cess, or the applicable tax treaty rate, whichever is beneficial. Alternative Investment Funds – Category III located in International Financial Services Centre are taxed at 10% plus surcharge and cess. Sovereign wealth funds and pension funds notified by the Central Government, as well as subsidiaries of the Abu Dhabi Investment Authority, qualify for a nil tax rate upon submission of specific notifications and declarations.
Shareholders must upload documents such as Form 121, Tax Residency Certificates, and other relevant forms on the specified RTA link on or before Monday, July 20, 2026. Any communication received after this date will not be considered for determining the appropriate withholding tax rate. The company reserves the right to independently verify PAN details from NSDL and apply higher tax rates if documents are found incomplete or discrepancies are observed. Shareholders are advised to update their KYC details, including email IDs and bank accounts, with MUFG Intime India Private Limited to ensure seamless communication and dividend payments.
Historical Stock Returns for Indo Borax & Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.48% | -9.00% | +19.06% | +76.42% | +80.06% | +190.80% |
What factors motivated the declaration of such a substantial special dividend alongside the final dividend?
How will the new Income-tax Act, 2025 regulations impact the net dividend returns for different categories of shareholders?
What is the expected impact of this significant payout on Indo Borax & Chemicals' cash flow and future capital expenditure plans?
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