Motherson Sumi Wiring sets Re. 0.58 dividend, outlines FY26 TDS rates
Motherson Sumi Wiring India Limited has communicated the tax deduction rates for the FY26 dividend of Re. 0.58 per share, with TDS applicable for Tax Year 2026-27. Resident shareholders with valid PAN will face a 10% deduction, while those without valid PAN or with inoperative PAN will incur a 20% rate. Non-resident shareholders generally face a 20% rate plus surcharge and cess, unless treaty benefits apply, with specific exemptions for sovereign wealth funds and pension funds. All necessary documentation must be submitted to KFin Technologies Limited by July 14, 2026, to avoid higher tax deductions.
*this image is generated using AI for illustrative purposes only.
Motherson Sumi Wiring India Limited has detailed the tax implications for the dividend of Re. 0.58 per share recommended for the financial year ended March 31, 2026. The company specified that Tax Deducted at Source (TDS) will be levied on dividend payments for Tax Year 2026-27, with rates varying based on the shareholder's residential status and documentation submitted. Shareholders must ensure their records are updated to avoid higher deductions.
The Board of Directors recommended the dividend at its meeting held on April 28, 2026, subject to shareholder approval at the 6th Annual General Meeting. Payments will be dispatched post the meeting in compliance with the Companies Act, 2013. The company emphasized that dividend income is taxable in the hands of shareholders under the Income-tax Act, 2025.
For resident shareholders, the TDS rate is set at 10% if a valid PAN is provided, though no deduction applies if the total dividend does not exceed ₹10,000. A higher rate of 20% applies if the PAN is invalid, inoperative, or not linked with Aadhaar as per Section 262(6). Residents may submit Form 121 to claim nil deduction or provide a lower deduction certificate under Section 395.
Non-resident shareholders face a standard rate of 20%, plus surcharge and cess, unless a beneficial Tax Treaty rate applies. Specific categories, such as Foreign Portfolio Investors (FPIs) Category I and Alternative Investment Funds (AIF) Category III in International Financial Services Centres, are subject to a 10% rate. Sovereign wealth funds and pension funds notified under Schedule V of the IT Act are exempt from TDS upon submission of valid declarations.
Shareholders must submit all relevant documents, including PAN copies and declarations, to KFin Technologies Limited, the Registrar and Transfer Agent, by July 14, 2026, 1700 Hours IST. Documents can be uploaded online or sent physically to the RTA's office in Hyderabad. Failure to provide complete information by the deadline will result in tax deduction at the maximum applicable rate, and the company reserves the right to reject late submissions.
| Shareholder Category | Applicable TDS Rate | Key Requirement |
|---|---|---|
| Resident (Valid PAN) | 10% | Valid PAN mandatory; no TDS if dividend ≤ ₹10,000 |
| Resident (No/Invalid PAN) | 20% | PAN must be updated with depositories or RTA |
| Non-Resident (General) | 20% (+ surcharge/cess) | Tax Residency Certificate and Form 41 required for treaty rates |
| FPIs - Category I | 10% (+ surcharge/cess) | Valid PAN and self-declaration needed |
| Sovereign/Pension Funds (Schedule V) | Nil | CBDT notification and self-declaration required |
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0FS801015/9e6c8de3ab7b4cf5.pdf
Historical Stock Returns for Motherson Sumi Wiring
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.56% | +0.99% | -5.79% | -16.39% | -7.27% | +27.97% |
How will the new tax deduction requirements impact foreign investor sentiment towards Motherson Sumi Wiring India Limited?
Will the company maintain this dividend payout ratio in future financial years given the increased compliance burden?
What operational risks does KFin Technologies face in processing the high volume of documentation by the July 14 deadline?
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