News Corporate Actions RailTel Corporation Declares Second Interim Dividend of Re 1 Per Share for FY 2025-26RailTel Corporation Declares Second Interim Dividend of Re 1 Per Share for FY 2025-26
RailTel Corporation of India Limited declared its second interim dividend for FY 2025-26 at 10% of paid-up share capital (Re 1 per equity share) with record date March 13, 2026 and payment date March 24, 2026. The company will use electronic payment modes exclusively as per SEBI regulations and has issued comprehensive TDS guidelines for resident and non-resident shareholders. Shareholders must submit required documents by March 16, 2026, for claiming tax exemptions or lower deduction rates.
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RailTel Corporation of India Limited has announced its second interim dividend for the financial year 2025-26, marking another milestone in the company's shareholder value creation. The Board of Directors approved this dividend declaration in their meeting held on March 9, 2026, demonstrating the company's commitment to consistent returns to its shareholders.
Dividend Declaration Details
The company has declared the second interim dividend at an attractive rate, providing direct benefits to its equity shareholders.
| Parameter: | Details |
|---|---|
| Dividend Rate: | 10% of paid-up share capital |
| Amount Per Share: | Re 1 per equity share |
| Board Meeting Date: | March 9, 2026 |
| Record Date: | Friday, March 13, 2026 |
| Payment Date: | Tuesday, March 24, 2026 |
Shareholders holding equity shares as on the record date of March 13, 2026, will be eligible to receive this dividend payment.
Electronic Payment Mode Implementation
In compliance with SEBI Fifth Amendment Regulations effective from November 19, 2025, RailTel will use only electronic modes of payment approved by the Reserve Bank of India for dividend distribution. The company has discontinued the issuance of dividend warrants and requests shareholders to update their bank details with respective depositories to ensure seamless electronic credit of dividend amounts.
Tax Deduction Guidelines
With dividend income becoming taxable in shareholders' hands from April 1, 2020, the company has outlined comprehensive TDS provisions under the Income Tax Act, 1961.
For Resident Shareholders
| Category: | TDS Rate | Conditions |
|---|---|---|
| Standard Rate: | 10% | Valid PAN available |
| Invalid/No PAN: | 20% | PAN invalid or unavailable |
| Inoperative PAN: | 20% | PAN not linked with Aadhaar |
| Exemption Threshold: | Nil | Aggregate dividend below Rs. 10,000 |
The company provides various exemption categories for resident shareholders:
- Form 15G/15H submissions for individuals with no tax liability
- Certificate for lower/nil deduction under Section 197
- Insurance companies registered with IRDA
- Mutual funds registered with SEBI
- Government entities and corporations under Section 196
- Alternative Investment Funds (Category I and II)
- Provident funds, superannuation funds, and gratuity funds
- National Pension Trust with appropriate documentation
For Non-Resident Shareholders
Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face TDS at 20% plus applicable surcharge and cess under Sections 195 or 196D. However, they can avail beneficial rates under Double Tax Avoidance Agreements by submitting:
- Self-attested PAN copy or prescribed details under Rule 37BC
- Valid Tax Residency Certificate for FY 2025-26
- Form 10F filed online for treaty benefits
- Additional documents for specific exemptions under Section 10(23FE)
Document Submission Requirements
Shareholders seeking TDS exemption, lower deduction rates, or credit transfer to beneficial owners must submit required documents to beetalrta@gmail.com or cs@railtelindia.com by 11:59 p.m. IST on or before March 16, 2026. The company emphasizes that communications received after this deadline will not be considered for the interim dividend payment.
Key submission guidelines include:
- Password-protected documents require password sharing in the same email
- Single email should contain documents for one shareholder only
- Multiple shareholders require separate emails with clear identification
- Incomplete or unsatisfactory documentation may result in higher TDS rates
Important Considerations
RailTel has clarified that shareholders remain responsible for any income tax demands arising from misrepresentation or omission of information. The company advises shareholders to consult their tax consultants for specific implications, as tax consequences depend on individual circumstances. TDS credits will be visible in Form 26AS, downloadable from the income tax e-filing portal.
This dividend declaration reinforces RailTel's position as a reliable dividend-paying entity, continuing its track record of rewarding shareholders while maintaining compliance with evolving regulatory requirements.
Historical Stock Returns for Railtel Corporation of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.19% | -1.94% | -17.01% | -21.33% | -1.47% | +93.97% |
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