Shares of Great Eastern Shipping Company Ltd. will be of interest on Tuesday, as the day marks the last session for retail investors to buy shares to qualify for receiving the dividend before the stock goes ex/record-date. The record date determines the eligible shareholders who will receive the dividend payment. The ex-dividend date, which mostly coincides with the record date, marks when the share price adjusts to reflect the upcoming payout.
Great Eastern Shipping Company has declared the fourth interim dividend of Rs 11.70 per equity share for the financial year 2025-26. The record date to determine the shareholders eligible for the dividend payout has been fixed as May 20.
Great Eastern Shipping Company has stated that the interim dividend will be paid after deducting applicable tax deducted at source (TDS) or withholding tax. For resident individual shareholders who have a valid PAN linked with Aadhaar, TDS will generally be deducted at the rate of 10% on the dividend amount in accordance with the Income-tax Act.
However, no TDS will be deducted in cases where the total dividend received during the financial year does not exceed Rs 10,000. Additionally, shareholders below 60 years of age may avoid TDS by submitting a duly completed and signed Form No. 121, provided it is accepted by the company. This form will not be considered valid if the total dividend payable during the year exceeds the maximum amount that is not chargeable to tax.
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T+1 settlement cycle
Given India's T+1 settlement cycle, shares purchased on the record date (May 20 in this case) will not be eligible for the dividend payment. Therefore, investors who own shares by May 19 will be the beneficiaries.
Dividends are a way for companies to reward shareholders. It is the portion of profits that a company distributes to its shareholders and is essentially a return on the investment shareholders make in the company's equity. Such payments are made through final, interim, and special dividends.
Dividends are taxable in the hands of the shareholders, and companies are no longer required to pay the Dividend Distribution Tax (DDT). The TDS on dividend income for resident individuals is 10% if the dividend amount exceeds Rs 5,000 in a financial year.
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