Petronet LNG sets TDS framework for Rs 3 FY26 dividend
Petronet LNG has communicated the tax deduction at source (TDS) rates for the final dividend of Rs 3 per share for FY26, recommended by the Board on May 4, 2026. Resident individuals are subject to 10% TDS, exempt if the total dividend is under Rs 10,000 or Form 121 is submitted, while specific entities like mutual funds enjoy a NIL rate. Non-resident shareholders face a 20% TDS plus surcharge and cess, though treaty benefits may apply. All necessary documents must be submitted to Bigshare Services Private Limited by 11:59 PM (IST) on July 10, 2026.

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Petronet LNG has established the tax deduction at source (TDS) framework for the final dividend of Rs 3 per share declared for the financial year 2025-26. The payout, recommended by the Board on May 4, 2026, is contingent upon shareholder approval at the ensuing 28th Annual General Meeting. The record date for determining dividend eligibility is June 12, 2026, with payment scheduled within 30 days of the AGM's approval.
TDS Rates for Resident Shareholders
The company will deduct tax at source under Section 393(1) of the Income Tax Act, 2025. For resident individuals, TDS is set at 10% on the dividend amount. However, no TDS applies if the aggregate dividend paid during the tax year 2026-2027 does not exceed Rs 10,000. Individuals may also avoid TDS by submitting a valid Form 121, provided eligibility conditions are met.
For resident entities such as insurance companies, mutual funds, and alternative investment funds, the TDS rate is NIL, subject to the submission of specific documentary evidence and self-declarations. Failure to provide a valid PAN or an inoperative PAN due to non-linkage with Aadhaar will result in a higher deduction rate of 20%.
| Category of Shareholder | Tax Deduction Rate | Key Requirement |
|---|---|---|
| Resident Individuals | 10% | Valid PAN required; NIL if dividend ≤ Rs 10,000 or Form 121 submitted |
| Insurance Companies | NIL | Registration certificate and self-declaration |
| Mutual Funds | NIL | Proof of Schedule VII compliance and self-declaration |
| Other Residents (No PAN) | 20% | Applicable if PAN is invalid or not linked with Aadhaar |
Guidelines for Non-Resident Shareholders
Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face a TDS rate of 20% plus applicable surcharge and cess. This rate may be lowered if the provisions of a Double Taxation Avoidance Agreement (DTAA) are more beneficial. To claim treaty benefits, non-residents must submit a Tax Residency Certificate (TRC), a self-attested PAN copy, a duly e-filed Form 41, and a declaration regarding beneficial ownership.
Document Submission Deadline
Shareholders must submit all relevant forms and declarations to the Registrar and Share Transfer Agent, Bigshare Services Private Limited, via email at tds@bigshareonline.com . The company has specified that no documents or communications regarding tax determination will be accepted after 11:59 PM (IST) on July 10, 2026. Shareholders are advised to ensure their bank details and email IDs are updated to facilitate the electronic transfer of funds.
Historical Stock Returns for Petronet LNG
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.16% | +9.75% | +8.88% | +7.40% | -2.84% | +27.83% |
How will the new TDS framework impact retail investor sentiment towards Petronet LNG ahead of the AGM?
What is the expected dividend yield for shareholders based on the current market price?
Could the strict documentation deadline for non-resident shareholders influence foreign investment flows?

































