HPCL sets ₹19.25 final dividend, outlines TDS rates for FY26
Hindustan Petroleum Corporation Limited has recommended a final dividend of ₹19.25 per share for FY26, with a record date of August 14, 2026. The company outlined specific TDS rates: 10% for residents with valid PAN, 20% for invalid PAN, and 20% plus surcharge and cess for non-residents. Residents with dividends under ₹10,000 are exempt, while those above must submit Form 121 - Annexure 1. Documents for tax exemptions must be submitted by July 31, 2026.
*this image is generated using AI for illustrative purposes only.
Hindustan Petroleum Corporation Limited has recommended a final dividend of ₹19.25 per equity share for the financial year 2025-26, subject to shareholder approval at the upcoming Annual General Meeting. The record date to determine eligibility for this payout is August 14, 2026. The company has detailed the tax deduction at source (TDS) rates applicable to this dividend, which vary based on the residential status of the shareholder and the validity of their Permanent Account Number (PAN).
The Board of Directors approved the recommendation during its meeting on May 13, 2026. Tax will be deducted in accordance with the Income Tax Act, 2025, as amended by the Finance Act, 2026. Shareholders must ensure their KYC details are updated, as SEBI mandates that corporate benefits be paid only via electronic mode to members with compliant records.
For resident shareholders, a TDS rate of 10% applies if a valid PAN is updated in the company's records. This rate rises to 20% if the PAN is invalid, not updated, or not linked with Aadhaar as required under Section 262 of the Income Tax Act. Resident individual shareholders are exempt from TDS if their aggregate dividend income during FY 2026-27 does not exceed ₹10,000. If the dividend exceeds this threshold, tax will not be deducted provided the shareholder submits Form 121 - Annexure 1 and meets the eligibility conditions.
Non-resident shareholders are subject to TDS at 20%, plus applicable surcharge and cess, under Section 393(2) of the Income Tax Act, unless specific exemptions apply. The company cautioned that shareholders holding shares under multiple accounts with different statuses but a single PAN may be subject to the higher tax rate applicable to any of those statuses on their entire holding.
To avail exemptions or concessions, shareholders must upload necessary documents via the weblink www.hpcldiv2026.com or submit them to taxforms@hpcldiv2026.com on or before July 31, 2026. The company clarified that if tax is deducted at a higher rate due to missing details, shareholders can claim a refund while filing their income tax returns.
Tax Deduction Rates for Dividend
| Shareholder Category | TDS Rate | Conditions |
|---|---|---|
| Resident (Valid PAN) | 10% | PAN updated in company records |
| Resident (Invalid/No PAN) | 20% | PAN invalid, not updated, or Aadhaar not linked |
| Resident Individual (Dividend ≤ ₹10,000) | 0% | Aggregate dividend does not exceed ₹10,000 in FY 2026-27 |
| Resident Individual (Dividend > ₹10,000) | 0% | Form 121 - Annexure 1 submitted and conditions met |
| Non-Resident | 20% + surcharge + cess | Under Section 393(2) of Income Tax Act |
Historical Stock Returns for Hindustan Petroleum
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.34% | +0.49% | +2.94% | -13.20% | -6.26% | +97.71% |
How will this dividend payout impact HPCL's capital expenditure plans for the upcoming fiscal year?
What is the expected shareholder approval rate for the dividend recommendation at the upcoming AGM?
Could the high TDS rates for non-resident shareholders deter foreign investment in HPCL moving forward?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
