SAGILITY Communicates TDS Rules for FY2025-26 Final Dividend

Lead

SAGILITY has distributed a communication to its shareholders detailing the Tax Deduction at Source (TDS) provisions applicable to the final dividend recommended for the financial year 2025-26. This initiative aims to inform shareholders about the tax implications and the necessary compliance steps to be taken ahead of the dividend payment. The Board of Directors had recommended a final dividend of Rs. 0.10 per equity share for FY2025-26, which is subject to shareholder approval at the upcoming Annual General Meeting.

Key highlights

• The Board recommended a final dividend of Rs. 0.10 per equity share for FY2025-26.
• This recommendation is subject to shareholder approval at the Annual General Meeting (AGM) scheduled for August 20, 2026.
• The record date for determining eligible shareholders for the dividend payment is Friday, August 7, 2026.
• For resident shareholders, TDS will generally be deducted at 10% on the dividend amount, provided a valid Permanent Account Number (PAN) is registered.
• A higher TDS rate of 20% will apply if the PAN is invalid or deemed inoperative, which includes cases where PAN is not linked with Aadhaar.
• No TDS will be deducted from resident individual shareholders if the aggregate dividend paid by the company during tax year 2026-27 does not exceed Rs. 10,000, or upon submission of a duly signed Form 121.

What drove it

The communication was issued to inform shareholders about the applicable tax provisions under the Income-tax Act, 2025, and Income-tax Rules, 2026, concerning the proposed final dividend. It explains how taxes will be deducted at source, with rates varying based on the shareholder's residential status, category, and the submission of required documents or forms.

Context

The Board of Directors of SAGILITY initially recommended the final dividend of Rs. 0.10 per equity share for FY2025-26 during its meeting held on May 12, 2026, as previously informed to the exchange.

Why it matters

This communication is important for shareholders as it provides clarity on the tax obligations related to the dividend payment. It allows shareholders to understand the varying TDS rates and the conditions under which these rates apply, including the implications of an invalid PAN or one not linked with Aadhaar. The information also guides shareholders on the necessary actions, such as updating their records with depositories or submitting specific forms like Form 121, to ensure accurate tax deductions and compliance.

What to watch

The payment of the recommended final dividend remains contingent on approval from shareholders at the Annual General Meeting scheduled for August 20, 2026. The company's website will also host this information for shareholder reference. Source: Exchange filing