KPEL: Details on Tax Deduction for Final Dividend Payout for FY 2025-26

K.P. Energy Limited (KPEL) has issued a communication to its shareholders regarding the deduction of tax at source (TDS) on the final dividend payout for the financial year 2025-26. The Board of Directors, in a meeting held on May 7, 2026, recommended a final dividend of 5%, amounting to ₹0.25 per equity share. This dividend is scheduled to be paid to shareholders of record as of September 22, 2026.

The company clarified that dividend income is taxable in the hands of shareholders as per the Income-Tax Act, 2025. KPEL is obligated to withhold tax at source at prescribed rates, which vary based on the shareholder's residential status and documentation provided. For resident shareholders, TDS is generally 10% if PAN is provided and linked, and 20% otherwise. Specific conditions are outlined for resident individuals and non-individuals (like insurance companies, mutual funds) to claim exemptions or lower TDS rates.

For non-resident shareholders, TDS is 20% under domestic tax law, but they can opt for beneficial rates under Double Taxation Avoidance Agreements (DTAA) by providing necessary documentation, including a Tax Residency Certificate (TRC) and Form 41. GDR holders will have TDS at 10% if PAN is provided, otherwise 20%.

Shareholders are requested to submit the required tax-related documents to the company or its Registrar and Transfer Agent, Bigshare Services Private Limited, by September 21, 2026, to ensure correct TDS deduction. Failure to submit timely or complete documents may result in higher TDS rates, though shareholders can claim refunds later. The company also reminded shareholders to update their bank details for electronic dividend payment as per SEBI regulations.