HPCL Recommends Final Dividend of Rs 19.25 Per Share for FY 2025-26; Details on Tax Deduction at Source Announced
Hindustan Petroleum Corporation Limited (HPCL) has announced that its Board of Directors recommended the payment of a Final Dividend for the Financial Year 2025-26, subject to approval by members at the ensuing Annual General Meeting. The company detailed the provisions regarding Tax Deduction at Source (TDS) related to the dividend payment following changes in the Income Tax Act, 2025.The Board meeting, held on May 13, 2026, recommended a Final Dividend of Rs. 19.25 per equity share for FY 2025-26. The record date set for the dividend payment is August 14, 2026.
As mandated by amendments to the Income Tax Act, 2025 introduced via the Finance Act, 2026, the dividend income will be taxable in the hands of shareholders, necessitating TDS deduction at the time of payment according to prescribed rates. The applicable tax rate depends on the residential status and documentation provided by the shareholder.
TDS Provisions for Dividend Payment
HPCL specified distinct provisions and rates for resident and non-resident shareholders under the IT Act. Tax consequences vary based on adherence to regulatory requirements, including PAN updates and linked Aadhaar details.The structure of the TDS/Withholding tax is detailed as follows:
| Shareholder Category | Applicable TDS Rate | Key Conditions / Notes |
|---|---|---|
| Resident Shareholders | 10% | Applicable if a valid PAN is updated with the company's Register of Members. |
| Higher rate (20%) | Applies if the PAN is invalid, deleted, or Aadhaar is not linked with the PAN as verified through the Government enabled online facility. | |
| No TDS | For Individual Residents where the aggregate dividend paid in FY 2026-27 does not exceed Rs. 10,000/-, provided necessary documentation (Form 121 - Annexure 1) is furnished. | |
| Non-Resident Shareholders | 20% + Surcharge and Cess | Applicable under Section 393(2) of the IT Act, unless exempt under specific provisions. |
Shareholders who hold shares under multiple accounts or statuses are advised that the higher rate applicable to their status will be considered for their entire holdings across different accounts. Shareholders also have the option to claim a refund of any excess tax deducted by filing their income tax return.
HINDPETRO Stock Price Movement
Today, shares of Hindustan Petroleum Corporation Limited surged, settling at ₹388.9 after gaining 6.56%. The stock traded within a narrow range defined by a day low of ₹372 and a high of ₹391.1, with over 14.1 million shares traded throughout the 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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