Hyundai Motor India Recommends Final Dividend of 210% and Details Tax Deduction at Source Rates

Hyundai Motor India Recommends Final Dividend of 210% and Details Tax Deduction at Source Rates​

Hyundai Motor India Limited has released details regarding the proposed payment of a final dividend for the financial year ended March 31, 2026, providing comprehensive guidance on the applicable Tax Deduction at Source (TDS) rates as mandated by the Income Tax Act, 2025.

The Board of Directors recommended a final dividend amounting to 210% of the face value of the stock. This equates to Rs. 21.00 per equity share, against which the shares are fully paid up at Rs. 10/- each. The recommendation was made during a meeting held on May 08, 2026, and is subject to approval by shareholders at the Annual General Meeting (AGM) scheduled for August 26, 2026.

The company fixed August 05, 2026, as the record date for the final dividend. As per the provisions of the Income Tax Act, 2025, which came into effect on April 01, 2026, any dividend paid is taxable in the hands of shareholders, necessitating TDS deduction at rates determined by the shareholder's residential status and classification.

TDS Rates for Resident Shareholders​

Hyundai Motor India Limited provided a detailed breakdown of TDS applicability based on the category and documentation submitted by resident individual shareholders.

The TDS rate depends significantly on the validity and linkage of the Permanent Account Number (PAN) and other self-declaration forms. Key provisions include:

• Valid PAN: A 10% deduction rate applies to residents with a valid PAN, provided the total dividend paid during that tax year does not exceed Rs. 10,000.
• No or Invalid PAN: For shareholders without a valid PAN, a 20% TDS is applicable, subject to similar criteria concerning the Rs. 10,000 threshold.
• Form 121 Submission: Residents who submit Form 121 along with a copy of their valid PAN card are eligible for NIL deduction.
• Institutional/Specific Categories: For shareholders categorized as Mutual Funds or Recognized Provident Fund (in line with Table SI. No. 20 / 21), the applicable rate is NIL, provided specific self-declarations and documentation are submitted.

Non-Resident Shareholder Rates​

For non-resident shareholders, the applicable TDS rate ranges depending on their tax status and investment category. The rates include applicable surcharge and cess where necessary.

Key classifications for non-resident investors and corresponding rates are detailed below:

Documentation and Deadlines​

The company stressed the importance of timely submission of documents to ensure proper tax rate determination. The final deadline for furnishing all required documents—including PAN copies, self-declarations (such as Annexure B), or relevant certificates—is set for Wednesday, August 12, 2026, at 17:00 Hours (IST).

The company has reserved the right to deduct tax at the maximum applicable rate if submitted documents are incomplete, ambiguous, or conflicting. Shareholders were advised that in the event of any income tax demand arising from misinformation provided, they must indemnify the company and cooperate with tax proceedings.

HYUNDAI Stock Price Movement​

Hyundai Motor India's stock settled robustly today, surging by 8.17% and closing at ₹2180.70. The shares traded within a range of ₹2090 to ₹2208, with over 5.53 million shares transacted during the session.