Mangalam Cement outlines TDS rates for FY26 dividend
Mangalam Cement Ltd has communicated the Tax Deduction at Source (TDS) rates for the final dividend of Rs 1.50 per share recommended for FY 2025-26. Resident shareholders face a 10% deduction if they provide a valid PAN, while non-residents are subject to 20% withholding tax, which can be reduced under Double Tax Avoidance Agreements (DTAA) upon submission of valid documents. The company has set the record date as August 14, 2026, and requires shareholders to submit necessary tax documentation to the Registrar and Transfer Agent by this date to avoid higher deductions.
*this image is generated using AI for illustrative purposes only.
Mangalam Cement Ltd has detailed the Tax Deduction at Source (TDS) implications for the final dividend of Rs 1.50 per equity share recommended for the financial year 2025-26. The dividend, amounting to 15% of the paid-up equity capital, is subject to shareholder approval at the Annual General Meeting scheduled for August 21, 2026. The Board has fixed August 14, 2026, as the record date to determine eligibility, with payment scheduled on or after August 25, 2026.
Under the Income Tax Act, 2025, dividends are taxable in the hands of shareholders, and the company is mandated to deduct tax at source. The applicable TDS rates vary based on the shareholder's residential status and the submission of valid documentation. Shareholders must submit necessary forms, including PAN and specific declarations, to the Registrar and Transfer Agent by August 14, 2026, to ensure the correct tax rate is applied.
Resident shareholders with a valid Permanent Account Number (PAN) are subject to a 10% TDS rate, while those without PAN will face a 20% deduction. Certain categories are eligible for nil TDS, including resident individuals with total dividend income not exceeding Rs 10,000 in the financial year and those submitting valid exemption forms like Form 121. Resident non-individuals such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) can also claim exemption by providing specific self-declarations and registration certificates.
Non-resident shareholders are subject to a withholding tax of 20% plus applicable surcharge and cess under domestic tax laws. However, they may claim benefits under Double Tax Avoidance Agreements (DTAA) by submitting a Tax Residency Certificate, PAN, and Form 41. For specified funds under Schedule VI of the IT Act, the TDS rate is 10%. The company emphasized that it is not obligated to apply beneficial DTAA rates unless the documents submitted are complete and satisfactory.
Failure to provide valid documentation or link PAN with Aadhaar may result in a higher TDS deduction of 20%. The company stated it is obligated to deduct tax based on records available with depositories or the Registrar and Transfer Agent and will not entertain requests for TDS revisions once processed. Shareholders are advised to ensure bank account details are updated in their demat accounts or physical folios to facilitate timely dividend credit.
| Shareholder Category | Rate of TDS |
|---|---|
| Resident Shareholders | Resident Shareholders |
| (i) Shareholders providing Form 121 | NIL |
| (ii) Resident Individual with dividend income up to Rs 10,000 | NIL |
| (iii) Other Resident Shareholders | 10% (with PAN) / 20% (without PAN) |
| Non-Resident Shareholders | Non-Resident Shareholders |
| (i) As per Domestic Tax Law | 20% or lower rate per tax treaty |
| (ii) Specified Fund under Schedule VI | 10% |
Historical Stock Returns for Mangalam Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.41% | +2.18% | +0.09% | +13.05% | +13.66% | +173.88% |
How will the 10% TDS rate for resident shareholders impact the stock's trading volume leading up to the August 14, 2026 record date?
What is the likelihood of the dividend recommendation being altered during the Annual General Meeting on August 21, 2026?
Could the strict documentation requirements for lower TDS rates deter foreign investment in Mangalam Cement Ltd prior to the payout?
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