REC Declares Rs. 3.20 Dividend: Are You Eligible? Check Record Date, TDS Rules & Payment Date

Mumbai: REC Limited, a Maharatna PSU company, has announced a 4th Interim Dividend of Rs. 3.20 per share for the financial year 2025-26.

If you are a shareholder or planning to become one, here is everything you need to know in simple words:

• Who will get this dividend?

• What is the last date to buy shares?

• How to save tax on dividend?

• What documents are needed?

• What happens if your bank details are wrong?

Let's understand step by step.

Important Dates to Remember

Who is Eligible to Get This Dividend?

To receive Rs. 3.20 per share, you must meet these two conditions:

Condition 1: You must be a shareholder on Record Date

• Record date is fixed as March 20, 2026.

• Your name should appear in the company's records as a shareholder on that day.

• If you hold shares in demat form, your depository (NSDL/CDSL) will provide the list.

• If you hold physical shares, your name should be in the Register of Members.

Condition 2: You must have bought shares before the record date

• In stock market, shares settle on T+1 basis (one day after purchase).

• To be safe, you should buy REC shares by March 17 or March 18, 2026 at the latest.

• If you buy on March 19, there is a risk that settlement may happen after record date.

Important: TDS on Dividend – What You Must Know

Earlier, companies used to pay dividend without deducting tax. But now, as per Income Tax rules, dividend income is taxable in your hands, and REC will deduct TDS before paying you.

Default TDS Rates:

Can You Save This TDS?

Yes, if your total income is below taxable limit, you can submit forms to avoid TDS deduction.

Who should submit what?

Deadline is March 20, 2026 – Strictly

REC has clearly stated that no TDS exemption requests will be accepted after March 20, 2026. So if you want to avoid TDS deduction, you must act now.

Where to Submit These Forms?

You can submit scanned copies through:

1. Email to: virenders@alankit.com

   • Also mark a copy to: recigr@alankit.com

2. Online Web Portal: https://einward.alankit.com/

Documents you need to send:

• PAN Card (scanned copy)

• Form 15G or Form 15H (duly filled and signed)

• Aadhaar Card (for verification)

Mandatory: Update Your Bank Details Right Now

This is very important. REC will pay dividend ONLY through electronic mode. No cheques or warrants will be issued.

If your bank details are not correct, the payment will fail and you will face delays.

What You Must Do:

If you hold shares in demat form:

• Contact your Depository Participant (DP) immediately.

• Check if your bank account details are correctly updated in your demat account.

• If not, submit the update request right away.

If you hold physical shares:

• Contact REC's Registrar and Transfer Agent (RTA) – Alankit Assignments Ltd.

• Submit the KYC update form along with:

  • Cancelled cheque

  • Bank account statement

  • PAN Card copy

When Will You Get the Money?

• Record Date: March 20, 2026

• Payment Date: On or before April 14, 2026

• Payment Mode: Direct credit to your bank account (through ECS/NEFT/RTGS)

The money will automatically come to the bank account linked to your demat account or physical folio. You don't need to apply separately.

Frequently Asked Questions

Q1. I bought REC shares today. Will I get this dividend?
Yes, if you hold those shares till March 20, 2026. Just make sure your purchase settles before the record date.

Q2. What if I sell shares on March 19?
If you sell before record date, you will NOT get the dividend. Only those holding on March 20 are eligible.

Q3. I forgot to submit Form 15G. Can I submit after March 20?
No. REC has clearly said no forms will be accepted after March 20. You will have to claim refund when filing your income tax return.

Q4. My bank details are wrong in demat account. What to do?
Contact your broker or DP immediately. Get it corrected before March 20, otherwise payment will fail.

Q5. I am an NRI. What TDS rate will apply?
For NRIs, TDS is usually 20% plus applicable surcharge and cess. You can claim lower rate if your country has a Double Taxation Avoidance Agreement (DTAA) with India. You need to submit Form 10F and other documents.

Q6. Will I get dividend if I hold shares in physical form?
Yes, but only if your bank details are updated with the RTA. Also, your name must be in the Register of Members on March 20, 2026.

Quick Summary – Do These 3 Things Now

Disclaimer: This article is for informational purposes only, based on the official filing by REC Limited with the stock exchanges. Please consult your tax advisor for personal tax advice.