HEG has announced a final dividend of Rs 3.40 per equity share for the financial year 2025-26. This dividend, representing 170% of the face value of Rs 2 per share, is subject to approval at the company’s 54th Annual General Meeting (AGM). The dividend will be distributed within 30 days following the AGM, provided it receives shareholder approval.
In compliance with the Income-tax Act, 2025, dividends distributed by the company will be taxable for shareholders. Consequently, HEG will deduct tax at source (TDS) at the applicable rates during the dividend payment process. The TDS rate will vary based on the shareholder’s residential status and category, contingent upon the submission of necessary declarations and documents.
For resident shareholders, no tax will be deducted if the total dividend received during the tax year 2026-27 does not exceed INR 10,000. Shareholders are advised to ensure their PAN is updated with their depository participant or the company’s registrar and share transfer agent, as applicable. Failure to link PAN with Aadhaar will result in a higher TDS rate of 20%.
HEG has outlined specific conditions under which no tax will be deducted for resident shareholders. These include furnishing Form 121 for individuals, self-declarations for entities such as LIC and GIC, and documentary evidence for mutual funds and alternative investment funds.
Non-resident shareholders will also be subject to TDS, with rates determined by their residential status and the provisions of the Income-tax Act.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).