Sagility Ltd sets TDS rules for FY26 final dividend of Rs 0.10
Sagility Ltd announced TDS provisions for its FY26 final dividend of Rs 0.10 per share, with rates of 10% for residents and 20% for non-residents. Exemptions are available for specific entities upon valid declaration. Shareholders must submit forms by August 11, 2026, to ensure correct tax deduction.
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Sagility Ltd has established the tax deduction at source (TDS) framework for its recommended final dividend of Rs 0.10 per equity share for the financial year 2025-26. The Board of Directors recommended this dividend on May 12, 2026, subject to shareholder approval at the Annual General Meeting scheduled for August 20, 2026. The dividend will be paid to shareholders whose names appear in the depository records on the record date of Friday, August 7, 2026.
The company informed shareholders that tax will be deducted at source under the Income-tax Act, 2025, with rates varying based on residential status and category. For resident shareholders, the standard TDS rate is 10% on the dividend amount, provided a valid Permanent Account Number (PAN) is registered with the depository. If the PAN is invalid or unavailable, the TDS rate increases to 20%. Tax will not be deducted if the aggregate dividend paid to a resident individual during the tax year 2026-27 does not exceed Rs 10,000.
Specific exemptions from TDS are available for certain resident entities upon submission of valid declarations. The table below details the applicable rates and required documentation for these categories.
| Particulars of resident shareholders | Applicable rate of TDS | Documents required |
|---|---|---|
| Resident Individual Shareholders with valid Form 121 | Nil | Duly signed Form 121 with self-attested PAN copy |
| Life Insurance Corporation (LIC), General Insurance Company (GIC), Other Insurer | Nil | Self-declaration of ownership/beneficial interest, PAN copy, IRDAI certificate |
| Shareholders under Section 393(5) (e.g., Mutual Funds, Government) | Nil | Self-declaration of eligibility, PAN copy, SEBI registration certificate |
| Category I and II Alternative Investment Fund (AIF) | Nil | Self-declaration of exemption, PAN copy, SEBI registration certificate |
| Shareholders with unconditionally exempt income | Nil | Self-declaration of exemption, PAN copy, registration certificate |
For non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, the TDS rate is 20% plus applicable surcharge and cess, unless a lower rate applies under a Double Taxation Avoidance Agreement (DTAA). To avail the DTAA rate, shareholders must submit a Tax Residency Certificate, Form 41, and a self-declaration confirming their tax residency and beneficial ownership.
Sagility Ltd has mandated that shareholders submit all required forms and documents for the Financial Year 2026-27 via the Registrar and Share Transfer Agent's website by the close of business hours on August 11, 2026. The company stated that no communication would be accepted after this date for tax determination matters. Additionally, shareholders seeking to pass on TDS credit to a person other than the registered shareholder must submit a declaration under Rule 203 by August 14, 2026.
The company advised shareholders to ensure their bank account details and demat account information are updated to facilitate timely dividend credit. Sagility Ltd clarified that any tax deducted at a higher rate due to incomplete documentation could be claimed as a refund from tax authorities, and the company would not be liable for such deductions.
Historical Stock Returns for Sagility
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.33% | +2.43% | +4.48% | -21.83% | -8.32% | +42.39% |
How will the strict documentation deadline impact the trading volume and liquidity of Sagility Ltd shares leading up to the record date?
Could the administrative burden of submitting specific forms for TDS exemptions discourage long-term investment from certain resident categories?
What is the likelihood of shareholder approval for the dividend given the relatively low payout of Rs 0.10 per share?
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