Hindustan Petroleum Corporation Limited (HPCL) announced that its Board of Directors, at a meeting held on May 06, 2025, recommended a final dividend of ₹10.50 per equity share for the Financial Year 2024-25. This dividend is subject to approval by members at the upcoming Annual General Meeting (AGM).
Key details regarding the dividend and tax deduction:
- The record date for the dividend is August 14, 2025.
- As per the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividend income is taxable in the hands of shareholders, and the company is required to deduct Tax at Source (TDS) at prescribed rates.
- For Resident Shareholders:
- TDS will be applicable at 10%, provided a valid PAN is updated in the company’s register.
- If PAN is not updated, invalid, deleted, or Aadhaar is not linked with PAN, a higher rate of 20% will apply.
- For individual resident shareholders, TDS will not apply if the total dividend paid by the company in FY 2025-26 does not exceed ₹10,000. If it exceeds ₹10,000, tax will not be deducted if a duly signed Form 15G (for individuals below 60 years) or Form 15H (for individuals 60 years and above) is provided, subject to eligibility conditions.
- For Non-Resident Shareholders:
- TDS under Section 195 and Section 196D of the Act will be applicable at 20% (plus applicable surcharge and cess), unless exempt under the Act's provisions.
- Shareholders are required to upload necessary documents for availing exemptions or concessions from tax on the weblink https://hpcldiv2025.com/ or submit to taxforms@hpcldiv2025.com on or before July 15, 2025.
- The company mandates payment of corporate benefits only through electronic mode for members with updated KYC details. Shareholders are requested to verify/update their KYC details, PAN, Email address, Mobile number, and Bank details with Depository Participants (for Demat shares) or Registrar & Share Transfer Agent (for physical shares).