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Date: 06th August, 2026 The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai - 400 051. Security Code: 532815 Symbol: SMSPHARMA Dear Sir/Madam, Subject: Communication to shareholders - Intimation on tax deduction at source on dividend Please find enclosed herewith a specimen of an e‐mail being sent to the shareholders of the Company whose email addresses are registered with the Registrar and Transfer Agent or the Depository Participant(s), intimating them about the applicable provisions of the Income-tax Act, 2025 relating to deduction of TDS/withholding tax before payment of the final dividend for FY 2025-26, if approved by the Shareholders at the 38th Annual General Meeting of the Company, and the procedure to be followed by the Shareholders for submission of relevant forms, documents, etc. The aforesaid information is also being made available on the website of the Company at http://www.smspharma.com Kindly take the same on records. Thanking you, Yours Faithfully For SMS Pharmaceuticals Limited Thirumalesh Tumma Company Secretary SMS PHARMACEUTICALS LIMITED CIN: L24239TG1987PLC08066 Registered office: 8th Floor, Trendset Jayabheri Connect, Kondapur, Serilingampally, Ranga Reddy Dist., Hyderabad-500084 Telangana Phone. No: 040-69859999 website: www.smspharma.com, email: cs@smspharma.com Dear ….., Foli No….. Sub: SMS Pharmaceuticals Limited - Information regarding deduction of Income tax at source from payment of Dividend for the financial year 2025-26 – Regarding We are pleased to inform you that the Board of Directors of the Company at their meeting held on Friday, 22nd May, 2026 recommended a final dividend of Rs.0.40 (Rupees Forty paise) per equity share of face value of Rs. 1 (Rupees one) each for the financial year ended March 31, 2026, subject to the approval of the Members at the ensuing Annual General Meeting (‘AGM’) of the Company to be held on Wednesday, 23rd September, 2026. The Company has fixed Wednesday, 16th September, 2026, as the ‘Record Date’ for determining entitlement of members to final dividend. The final dividend, if approved by the Members at the AGM, would be paid after 23rd September, 2026, subject to deduction of tax at source. As you are aware, as per the provisions of the Income Tax Act, 2025 (‘Act’), dividend paid or distributed by a company shall be taxable at the hands of shareholders. The Company shall therefore be required to deduct tax at source at the time of making the payment of final dividend as per the categories mentioned below: Table A: Resident Shareholders : Category of Tax Exemption applicability and documentation requirements shareholders Deduction Rate Resident Individuals 10% (a) No tax shall be deducted on the dividend payable to resident individuals if: having valid PAN i. Total dividend amount to be received by them during the tax year 2026- 27 does not exceed Rs.10,000/- or ii. The shareholder provides Form 121 - Part A (applicable to Individuals below and above the age of 60 years), provided that all the required eligibility conditions are met. Please note that all fields are mandatory to be filled up and Company may at its sole discretion reject the form, if the prescribed requirements under the Act are not fulfilled. The template of Form 121 - Part A is attached as Annexure 1. iii. Exemption certificate is issued by the Income tax department, if any. (b) In case, shareholders provide certificate under section 395(1) of the Act or under section 197 of the Income-tax Act, 1961, for lower/NIL withholding of taxes, rate specified in the said certificate shall be considered, on submission of self-attested copy to the Company. Resident Individuals 20% In case, shareholders do not have PAN/ invalid PAN/PAN is not linked with not having PAN/ Aadhar/not registered their valid PAN details in their account, TDS at a higher discrepancy in PAN rate of 20% shall be applicable as per section 397(2) of the Act. Resident Non- Nil (a) Insurance Companies: Self declaration that it qualifies as ‘Insurer’ as per Individuals section 2(7A) of the Insurance Act, 1938 and has full beneficial interest with respect to the equity shares owned by it along with self-attested copy of PAN card and certificate of registration with Insurance Regulatory and Development Authority (IRDA)/LIC/GIC. (b) Mutual Funds: Self-declaration that it is registered with SEBI and is qualifying for exemption under Schedule VII [Table: Sl. No. 20 or 21] to section 11 of the Act, along with self-attested copy of PAN card and certificate of registration with SEBI. (c) Alternative Investment Fund (AIF): Self-declaration that its income is exempt under Schedule V [Table: Sl. No. 1] to section 11 of the Act, and they are registered with SEBI as Category I or Category II AIF along with self-attested copy of the PAN card and certificate of AIF registration with SEBI. (d) New Pension System (NPS) Trust: Self-declaration that it qualifies as NPS trust and income is eligible for exemption under Schedule VII [Table: SI. No. 41] to section 11 of the Act and being regulated by the provisions of the Indian Trusts Act, 1882 along with self-attested copy of the PAN card. Template of self-declaration is enclosed as Annexure 2. (e) Other non-individual shareholders: Self-attested copy of documentary evidence supporting the exemption along with self-attested copy of PAN card. (f) In case shareholders provide certificate under section 395(1) of the Act or under section 197 of the Income-tax Act, 1961 for lower/NIL withholding of taxes, rate specified in the said certificate shall be considered on submission of self-attested copy of certificate to the Company. Table B: Non-Resident Shareholders Category of Tax Exemption applicability and documentation requirements shareholders Deduction Rate Non – residents 20% As per domestic tax law: Taxes are required to be withheld in accordance with the provisions of section 393(2) [Table Sl. No. 17] read with section 207(1) [Table Sl. No. 1] of the Act. The withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) on the amount of dividend payable. In case non-resident shareholders provide a certificate issued under section 395(1) of the Act for lower/NIL withholding of taxes, rate specified in the said certificate shall be considered. As per Double Tax Avoidance Agreement (DTAA): As per Section 159 of the Act, the non-resident shareholder has the option to be governed by the provisions of the DTAA between India and country of tax residence of the shareholder, if they are more beneficial to them. In order to avail the DTAA benefit, the non-resident shareholders are required to submit the following: i. Self -attested copy of Tax Residence Certificate (‘TRC’) (for the Tax year April 1, 2026 to March 31, 2027) obtained from the tax authorities of the country of which the shareholder is a resident. ii. Shareholders who have PAN and propose to claim treaty benefit need to mandatorily file the Form 41 online at the link https://eportal.incometax.gov.in/ to avail the benefit of DTAA (for the Tax year April 1, 2026 to March 31, 2027). iii. Self -declaration by shareholder of meeting treaty eligibility requirement and satisfying beneficial ownership requirement (for the Tax year April 1, 2026 to March 31, 2027). Please refer the format attached herewith as Annexure 3. iv. In case of Foreign Institutional Investors and Foreign Portfolio Investors, copy of SEBI registration certificate. v. Self-attested copy of the PAN card allotted by the Income tax authorities. vi. In case of shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapo [Showing first 8,000 characters — download PDF for full document]