Please find attached the intimation of deduction of tax at source on dividend

Through NEAPS By Listing Centre National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, C-1 Phiroze Jeejeebhoy Towers Bandra–Kurla Complex, Bandra (East) Dalal Street, Fort, Mumbai-400051 Mumbai – 400001 Trading Symbol: STERTOOLS Scrip Code: 530759 Date: 11th August, 2026 Subject: Intimation of Deduction of tax at source on dividend- E-mail Communication to Shareholders Dear Sir/Madam, Pursuant to the Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, please find enclosed herewith e-mail communication, which has been sent to all the Shareholders whose e-mail addresses are registered with the Company/ Registrar and Transfer Agent/ Depositories, indicating the process and documentation required for claiming tax exemption/withholding tax, at applicable rates, if any, on the proposed Dividend to be paid, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company. The copy of this intimation is also being disseminated on Company’s website at https://stlfasteners.com/investors. This is for your information and record purpose. Thanking You, Yours truly, For STERLING TOOLS LIMITED Pragya Saxena Company Secretary & Compliance Officer M No. F9640 Encl.: As Above. REGD OFFICE : DJ-1210, 12th Floor, DLF Tower -B, Jasola District Centre, New Delhi-110025 Email-csec@stlfasteners.com STERLING TOOLS LIMITED CIN: L29222DL1979PLC009668 Regd. Office: DJ-1210, 12th Floor, DLF Tower-B, Jasola District Centre, New Delhi – 110025 Corporate Office: Plot No. 4, D L F Industrial Estate, Faridabad-121003 E-mail: csec@stlfasteners.com, Website: www.stlfasteners.com Tel: 91 129 2270621-25 THIS COMMUNICATION IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION Ref: Folio / DP Id & Client Id No: Name of the shareholder: Dear shareholder, Subject: Deduction of tax at source on dividend We hope that you and your family are safe and healthy. We wish to inform you that the Board of Directors of Sterling Tools Limited (“the Company”), at its meeting held on 15th May, 2026, has recommended a dividend of Rs. 2.75/- per equity share of the face value of Rs. 2/- each for the financial year ended 31st March, 2026, subject to the approval of shareholders of the Company at its ensuing Annual General Meeting (“AGM”). The dividend, as recommended by the Board and if approved at the ensuing Annual General Meeting to be held in 2026 will be paid in electronic form to the shareholders holding Equity shares on the Company as on the record date, i.e. 28th August, 2026. In terms of the provisions of the Income-tax Act, 2025, (the Act”), dividend paid or distributed by a Company would be taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of dividend. The deduction of tax at source will be based on the category of shareholders and subject to fulfilment of conditions as provided below: For Resident Shareholders Tax will be deducted at source (“TDS”) under section 393(1) [Table: S.No.7] read with section 393(4) [Table Sr. no. 10] of the Act @ 10% on the amount of dividend payable unless exempt under any of the provisions of the Act. However, in case of resident shareholders, TDS would not apply if the aggregate of total dividend distributed/paid to them by the Company during a financial year does not exceed Rs.10,000/-. Tax will not be deducted at source in cases where a shareholder provides Form 121, provided that the eligibility conditions are satisfied. Blank Form 121 can be downloaded from the link given at the end of this communication. Also, FAQ’s related to Form 121 can also be downloaded from the below given link. Please note that all fields mentioned in the Form are mandatory and the Company may reject the forms submitted, if they do not fulfil the requirement of the law. NIL / lower tax shall be deducted on the dividend payable to following resident shareholders on submission of self-declaration (refer format) as listed below: i) Insurance companies: Declaration that no tax is deductible as per provisions of 393(4) [Table: S.No.10] of the Act along with self-attested copy of registration certificate and PAN card; ii) Mutual Funds: Declaration by Mutual Fund shareholder eligible for exemption under Schedule VII (Table: Sl. No. 20 or 21) of section 11 of the Act, along with self-attested copy of registration documents and PAN card; iii) Alternative Investment Fund (AIF) established in India: Declaration that the shareholder is eligible for exemption under Schedule V [Table: Sl. No. 1] of section 11 of the Act and they are established as Category I or Category II AIF under the SEBI regulations, along with copy of self-attested registration documents and PAN card; iv) New Pension System Trust: Declaration along with self-attested copy of documentary evidence supporting the exemption and self-attested copy of PAN card; v) Other shareholders: Declaration along with self-attested copy of documentary evidence supporting the exemption and self-attested copy of PAN card; vi) Shareholders who have provided a valid certificate issued under section 395(1) of the Act for lower / nil rate of deduction or an exemption certificate issued by the income tax authorities along with Declaration. For Non-Resident Shareholders Tax is 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 at applicable rates in force. As per the relevant provisions of the Act, the tax shall be withheld @ 20% (plus applicable surcharge and cess) on the amount of dividend payable. However, as per Section 159 of the Act, a non-resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Agreement (“DTAA”) between India and the country of tax residence of the shareholder, if they are more beneficial to the shareholder. For this purpose, i.e. to avail the Double Tax Avoidance Agreement (DTAA) benefits, the non-resident shareholder will have to provide the following: i) Self-attested copy of PAN card, if any, allotted by the Indian Income Tax Authorities; ii) Self-attested copy of Tax Residency Certificate (“TRC”) obtained from the tax authorities of the country of which the shareholder is resident; iii) Electronically generated Form - 41 from income tax portal; iv) Self-declaration (refer format) by the non-resident shareholder of meeting DTAA eligibility requirement and satisfying beneficial ownership requirement v) In case of Foreign Portfolio Investors, self-attested copy of SEBI registration certificate; vi) In case of shareholder being tax resident of Singapore, along with the above (as may be applicable), please furnish the letter issued by the competent authority or any other evidences demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA. The self-declarations referred to in point no. (iv) can be downloaded from the link given at the end of this communication. Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review by the Company, of the documents submitted by non-resident shareholders and meeting requirement of the Act read with applicable DTAA. It must be ensured that self-declaration should be addressed to Sterling Tools Limited and should be in the same format as given. In the absence of the same, the Company will not be obligated to apply the beneficial DTAA rate at the time of tax deduction on dividends. Form 41 in digital format is mandatory for non-resident shareholders having PAN in India or who are required to obtain PAN in India. Form 41 in any other format will not be considered for benefit under DTAA. Higher rate of TDS In case, an individual shareholder who does not have PAN / has an Invalid PAN/ whose PAN is not linked with Aadhar / not registered their valid PAN details in their account, tax at the rate of 20% shall be deducted under Sect [Showing first 8,000 characters — download PDF for full document]