NELCO Limited has informed the Exchange regarding 'Communication to Shareholders - Intimation on Tax Deduction on Dividend'.
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NELCO Limited has informed the stock exchanges about the tax deduction process for the dividend declared for FY 2024-25. The Board of Directors, at their meeting on April 24, 2025, recommended a dividend of Rs. 1 per equity share (10% on face value of Rs. 10), subject to shareholder approval at the upcoming AGM. Since the abolition of Dividend Distribution Tax under the Finance Act 2020, dividends are now taxable in shareholders' hands, and the company will deduct TDS at applicable rates. For resident shareholders with a valid PAN, TDS will be 10%; without PAN or if PAN-Aadhaar is not linked, the rate rises to 20%. Resident individuals with total dividends up to Rs. 10,000 or those submitting Form 15G/15H can claim exemption. Non-resident shareholders face 20% TDS (plus surcharge and cess) unless they submit documents to claim beneficial DTAA treaty rates. All required documents must be submitted by June 5, 2025.
Shareholders should ensure their PAN is linked with Aadhaar and submit Form 15G/15H or DTAA documents by June 5, 2025 to avoid higher TDS deduction. The 10% dividend itself is modest, but non-compliance with documentation could reduce net receipt by half due to the 20% withholding rate.