HEG Limited Board Recommends Final Dividend of Rs 3.40 Per Share for FY 2025-26
HEG Limited announced that its Board of Directors recommended a final dividend for the fiscal year 2025-26. The recommendation was made at a board meeting held on April 29, 2026.The company has recommended a final dividend of Rs 3.40 per equity share. This dividend relates to the face value of Rs 2 per share, representing 170% of the face value. The payment of this dividend is subject to the approval of the shareholders at the ensuing 54th Annual General Meeting (AGM) of the Company. Should the dividend proceed, the funds will be paid or dispatched within 30 days from the date of the AGM.
Taxation on Dividend Payment
The company noted that, as per the Income-tax Act, 2025, dividends paid or distributed by a company are taxable in the hands of the shareholders. Consequently, the company will be required to deduct tax at source (TDS) at the time of the dividend payment, if approved by the shareholders at the AGM.The withholding tax rate varies based on the shareholder's residential status and category, and the specific applicable tax provisions.
Tax Deduction at Source (TDS) Rates
The TDS implications differ significantly for resident and non-resident shareholders.Resident Shareholders:
For resident shareholders, the tax deduction rate depends on the shareholding structure and documentation:
| Particular | Withholding Tax Rate | Condition / Requirement |
|---|---|---|
| Valid PAN updated (Demat or Physical) | 10% | No Documents Required |
| No PAN / Invalid PAN | 20% | No Documents Required |
Non-Resident Shareholders:
For non-resident shareholders, the rates are outlined as follows:
| Category | Withholding Tax Rate |
|---|---|
| Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) | 20% (plus applicable surcharge and cess) as per Section 393(2) or tax treaty rate, whichever is beneficial |
| Alternative Investment Fund - Category III | 10% (plus applicable surcharge and cess) |
| Other Non-resident shareholders (excluding those tax residents of Notified Jurisdictional Area) | 20% (plus applicable surcharge and cess) as per Section 393(2) or DTAA rate, whichever is beneficial |
| Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area | 30% (plus applicable surcharge and cess) |
| Sovereign Wealth funds and Pension funds notified by Central Government | NIL |
The company advised that shareholders must consult their own tax advisors regarding the specific tax implications applicable to their situation.
HEG Stock Price Movement
HEG Limited shares today slipped by 1.50% to settle at ₹578.40. The stock saw notable volume, with 917,112 shares passing through the system during today’s trading session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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