GHCL Ltd notifies shareholders about TDS on upcoming dividend payout as per income tax regulations. Read the full update here.
GHCL Ltd Notifies Shareholders About TDS on Dividend Distribution
Date: June 10, 2025
Source: Bombay Stock Exchange (BSE)
GHCL Ltd (BSE: 500171), one of the leading names in Indian chemicals and textiles, has formally intimated its shareholders about the Tax Deducted at Source (TDS) incurred on the forthcoming dividend distribution. The news was made public on June 9, 2025, in the form of a regulatory filing with the Bombay Stock Exchange under the “Company Update” category.
This communication is to keep shareholders informed regarding their tax obligations under the Indian Income Tax Act, 1961, and facilitating convenient dividend payment processing in terms of government directives.
Key Details from GHCL’s Shareholder Communication
As per the regulatory disclosure, the declared dividend will be taxable under Section 194 of the Income Tax Act. GHCL Ltd stressed the need for shareholders to ensure tax compliance by providing the concerned documents, including PAN information and Form 15G/15H (if applicable), within the time specified.
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The company has attached a detailed PDF explaining the following aspects:
- Applicable TDS rates for resident and non-resident shareholders
- Exemptions and conditions for lower TDS rates
- Instructions on submission of tax forms via the company’s RTA (Registrar and Transfer Agent) portal
- Deadlines for form submissions prior to the record date
This proactive move by GHCL aims to prevent any deductions at higher rates for shareholders whose PAN details are not updated or who fail to meet exemption criteria.
Why Is TDS Deducted on Dividends?
TDS on dividends is a compliance requirement that arose after the abolition of Dividend Distribution Tax (DDT) in Budget 2020. As per the revised framework:
- Resident shareholders are generally subject to 10% TDS if their dividend exceeds ₹5,000 in a financial year.
- Non-resident shareholders may be taxed at higher rates depending on applicable treaties or domestic tax laws.
- Those who qualify under Form 15G/15H exemptions or possess valid lower deduction certificates can avoid or reduce this deduction.
Companies like GHCL must ensure accurate deductions to avoid penalties and ensure smooth payout disbursal.
What Shareholders Should Do Now
GHCL shareholders are advised to:
- Verify PAN details linked to their demat accounts.
- Submit applicable tax forms on or before the deadline, if they are eligible for TDS exemptions.
- Regularly check communications from GHCL or its RTA (likely KFin Technologies or similar) for submission portals and guidelines.
- Keep a copy of submitted forms or acknowledgements for personal records.
The company may also host a dedicated helpdesk or provide a FAQs section to address investor queries on TDS compliance.
Importance of Investor Awareness
GHCL’s communication underscores the importance of investor awareness in today’s regulated capital markets. For long-term investors, dividend income remains a significant component of total returns, and managing associated tax responsibilities ensures that there are no disruptions or surprises during disbursal.
The company has displayed regulatory transparency and shareholder-centric communication, which contributes to its credibility among retail and institutional investors alike.
About GHCL Ltd
Incorporated in 1983, GHCL Ltd is a reputed company engaged in inorganic chemicals (soda ash in particular) and textiles (spinning as well as home textiles). Through the years, GHCL has established a niche within Indian and overseas markets based on a strong emphasis on sustainability, innovation, and governance.
The company remains active in positioning itself with shareholder interests and maintaining best practices in financial disclosure.
For More Information
Interested stakeholders can view the official announcement and download the TDS communication PDF directly from the BSE page for GHCL Ltd.
