NBFC Stock Announces Big Update On Rs 8/Share Dividend Ahead of Record Date On 22nd Feb

Within the NBFC industry, A. K. Capital Services is a small-cap company. An Indian business called A K Capital Services Limited offers merchant banking and investment advisory services. The interim dividend of Rs 8 per share for FY24 has been announced by the Board of Directors, and Thursday, February 22nd has been set as the record date for the same. However, the firm has released a significant update regarding its dividend payout prior to the shares becoming ex-dividend in one day.

A. K. Capital Services Dividend Update

"We are pleased to inform you that the Board of Directors of the Company at their Meeting held on Friday, February 9, 2024 have declared an Interim Dividend of INR 8/- (Indian Rupees Eight only) per Equity Share of face value of INR 10/- (Indian Rupees Ten) each for the financial year 2023-24. The said Dividend will be payable to those shareholders whose names appear in the records of the Depositories as beneficial owners of the shares as at the close of business hours on Thursday, February 22, 2024 (Record date).

The dividend would be paid to the eligible shareholders within a period of 30 days from the date of declaration of interim dividend, i.e., on or before March 7, 2024, through various online modes or any other permissible modes of payment to those shareholders who have updated their bank account details with their Depository Participants ("DPs")," said A. K. Capital Services in a regulatory filing on 19th February.

"Shareholders holding equity shares in the Company under multiple accounts under different status / category and single PAN, may note that higher of the tax as applicable to the status in which shares are held under a PAN will be considered on their entire holding in different accounts," said A. K. Capital Services in a stock exchange filing.
Shareholders are requested to update tax residential status, permanent account number (PAN), registered email address, mobile numbers and other details with their depository participants, in case the shares are held in dematerialized form. In case a shareholder is holding shares in physical mode, he/she is requested to furnish details to the Company's registrar and share transfer agent.

Individual resident shareholders are requested to kindly link AADHAR with PAN on the Income-Tax Portal. Kindly note that the aforementioned documents are required to be mailed to [email protected], on or before February 24, 2024. in order to enable the Company to determine and deduct appropriate TDS / withholding tax rate. Incomplete and/or unsigned forms and declarations will not be considered by the Company. No communication on the tax determination/deduction shall be considered post 6:00 PM (IST) of February 24, 2024. Shareholders will be able to download the TDS certificate from the Income Tax Department's website https://incometaxindiaefiling.gov.in (refer to Form 26AS).

All the documents submitted by the shareholders will be verified by the Company and the Company will consider the same while deducting the appropriate taxes if they are in accordance with the provisions of the Act. The Company reserves the right to reject the documents in case of any discrepancies or the documents are found to be incomplete.

Shareholders may note that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents or any other reasons, the Company shall not be liable to refund any excess TDS deducted. Shareholders shall have an option to file a return of income as per the provisions of the Act and claim refund of any excess TDS. No claim shall lie against the Company for such taxes deducted.

Shareholders holding shares under multiple accounts under different residential status / category and single PAN, may note that, higher of the tax rate as applicable to different residential status/ category will be considered for their entire shareholding under different accounts.

In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided by the shareholder, the shareholder will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any tax proceedings.

Shareholders are further requested to complete necessary formalities to link their bank accounts to their demat accounts to enable the Company to make timely credit of dividend in respective bank account, said A. K. Capital Services in a regulatory statement by adding the above points.

Update On Declaration By Shareholders Under Rule 37BA (2)

A. K. Capital Services said, "In order to enable the Company to provide credit of tax deducted at source to beneficial shareholders in whose hands dividend paid by Company is assessable, shareholders are requested to provide declaration in format as prescribed under Rule 37BA (2) of the Income Tax Rules, 1962. The declaration must consist of Name, address, PAN of the person to whom credit is to be given and proportion of credit to be given in respect of dividend income. The declaration needs to be submitted by the cut-off date as per this communication. Any declaration received beyond this date shall not be considered."

For resident shareholders (except from resident individual shareholders who receive a dividend from the company of no more than Rs 5,000/-during FY 2023-2024), taxes are deductible at source. In the event that shares are held in physical form or the individual is a specified person for the purposes of Section 206AB of the Act, the dividend income will be taxable in the hands of the shareholders. The company is required to deduct tax at source (TDS) at a rate of 10% in the case of a valid PAN and or else 20% on no, invalid, or inoperative PAN with the Depository Participant.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.