Majestic Auto Limited has set a strict deadline of August 16, 2026, for shareholders to submit tax exemption documentation regarding its proposed final dividend of ₹25 per equity share for the financial year ended March 31, 2026 (FY25-26). The company’s Board of Directors recommended the dividend on May 23, 2026, pending approval by members at the 53rd Annual General Meeting (AGM) scheduled for August 17, 2026. This notification is critical for investors seeking to optimize their net dividend receipt by claiming lower or nil Tax Deducted at Source (TDS) under the Income-tax Act, 2025.

The record date for determining dividend eligibility is fixed for Monday, August 10, 2026. Dividend payments are scheduled to be made on or before September 16, 2026, within 30 days of declaration. Under Section 393(1) of the Income-tax Act, 2025, dividends are taxable in the hands of shareholders, mandating TDS deduction by the company unless specific exemptions apply. Failure to submit valid exemption forms by the August 16 deadline will result in TDS being deducted at statutory rates: 10% for resident individuals and entities, and 20% plus applicable surcharge and cess for non-resident shareholders.

Resident individual shareholders may claim exemption from TDS if their total dividend income from Majestic Auto during FY26-27 does not exceed ₹10,000 and their overall income is below the taxable limit. To avail this benefit, shareholders must submit Form 121 (formerly Form 15G/15H) along with a self-attested PAN card. Other resident entities, including insurance companies, mutual funds, and alternative investment funds, must provide specific declarations and registration certificates to qualify for exemptions under relevant sections of the Act.

Non-resident shareholders, including Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs), face a default TDS rate of 20%. However, they can claim benefits under Double Tax Avoidance Agreements (DTAA) by submitting a Tax Residency Certificate (TRC), Form-41 (formerly Form 10F), and a self-declaration regarding beneficial ownership and Principal Purpose Test compliance. The company emphasized that incomplete or late submissions will not be considered, and no claims against the company will be entertained for taxes once deducted.

Key Dividend and Compliance Dates

Shareholders holding physical shares must ensure their Permanent Account Number (PAN), contact details, bank account information, and specimen signatures are updated with the Registrar and Transfer Agent, M/s. Alankit Assignments Limited. As per SEBI Master Circular No. HO/38/13/(4)2026-MIRSD-POD/I/4298/2026 dated February 06, 2026, physical warrant payments have been discontinued since April 1, 2024; all dividend payments must now be made electronically. Shareholders with unlinked or invalid PANs will face a higher TDS rate of 20% under Section 397(2) of the Act.

What the Numbers Show

The proposed dividend of ₹25 per share represents a significant cash return to shareholders, given the face value of ₹10 per equity share. However, the net yield depends heavily on shareholder classification and compliance. For instance, a resident individual receiving exactly ₹10,000 in dividends could receive the full amount if exempt, whereas a non-resident without DTAA documentation would see a 20% reduction before considering surcharge and cess. The strict August 16 deadline creates a narrow window for action, particularly for physical shareholders who must coordinate with the RTA to update KYC details to avoid electronic payment failures or higher tax deductions.

Majestic Auto Limited has scheduled its 53rd Annual General Meeting for August 17, 2026. The meeting will be conducted through Video Conferencing and Other Audio Visual Means, commencing at 11:00 AM IST. This announcement follows the publication of newspaper advertisements on July 03, 2026, informing shareholders and regulatory bodies about the upcoming event.

The convening of the meeting is in compliance with Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the proceedings adhere to Section 108 of the Companies Act, 2013, read with Rule 20 of the Companies (Management and Administration) Rules, 2014, and the Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India.

Nishant Sharma, the Company Secretary and Compliance Officer, signed the disclosure addressed to the Department of Corporate Affairs and BSE Limited. The communication confirmed that copies of the newspaper advertisements were enclosed for the records of the exchanges and the regulatory authority.

Meeting Details