Coal India Limited has issued comprehensive tax guidelines to shareholders regarding the third interim dividend of ₹5.50 per equity share for FY 2025-26, with the record date set for February 18, 2026. The communication outlines detailed Tax Deduction at Source (TDS) provisions and procedural requirements for different categories of shareholders.

Dividend Payment and Electronic Mode Mandate

Following SEBI's amendment to Listing Obligations and Disclosure Requirements regulations dated November 18, 2025, the company will exclusively use RBI-approved electronic modes for dividend payments. Physical dividend instruments such as warrants, cheques, or demand drafts will no longer be issued.

Shareholders are required to update their KYC details in demat accounts to facilitate direct bank transfers. This follows earlier interim dividends of ₹5.50 per share declared on July 31, 2025, and ₹10.25 per share declared on October 29, 2025.

Tax Deduction Framework for Resident Shareholders

Under the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividends are taxable in shareholders' hands. The company will deduct tax at source under sections 194, 195, and 196D based on shareholder status and category.

Resident shareholders can claim exemption by submitting Form 15G (individuals) or Form 15H (individuals aged 60+), provided they meet eligibility conditions. The forms must reflect total expected dividend income from Coal India during the current financial year.

Non-Resident Shareholder Provisions

Non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), face a standard TDS rate of 20% plus applicable surcharge and cess. However, they can opt for lower tax treaty rates by submitting required documentation.

Non-residents from notified jurisdictional areas under Section 94A face a higher TDS rate of 30% plus surcharge and cess. Sovereign wealth funds and pension funds notified under section 10(23FE) are exempt from TDS.

Digital Tax Portal and Submission Process

Coal India has introduced a dedicated web portal at https://taxportal.coalindia.in for document submission, operational from February 13-20, 2026. All tax-related documents, including Forms 15G/15H, PAN copies, and tax residency certificates, must be submitted through this portal.

The company emphasizes that no communications regarding tax determination will be entertained after the cut-off date, and reserves the right to reject incomplete or discrepant documents. TDS certificates will be available exclusively through the online portal, with no separate mailing.

Compliance and Advisory Notes

Shareholders must ensure Aadhar-PAN linkage to avoid higher TDS rates under Section 206AA. The company will use Income Tax Department functionality to determine PAN validity and applicable rates. For shares held in multiple accounts under single PAN, the higher applicable tax rate will apply to entire holdings.

The communication includes a disclaimer stating that the information does not constitute tax or legal advice, recommending shareholders consult their tax advisors for specific circumstances. This comprehensive framework ensures regulatory compliance while facilitating efficient dividend distribution through electronic channels.

Coal India Limited has received board approval for establishing an Intermediate Holding Company (IHC) in Chile, marking a significant step in the Maharatna company's international expansion and diversification strategy. The company disclosed this development through a regulatory filing dated February 4, 2026, addressed to both BSE and NSE.

Strategic Focus on Critical Minerals

The newly approved Chilean entity will concentrate on exploring and developing opportunities in critical minerals, with particular emphasis on lithium and copper resources. This initiative aligns with Coal India's broader diversification strategy as the company seeks to expand beyond its traditional coal mining operations into strategic mineral segments.

Ownership and Investment Structure

Coal India will maintain complete control over the Chilean subsidiary through 100% equity investment. The company has indicated that this will be a cash consideration-based investment, though the specific subscription cost and share price details are yet to be finalized.

Regulatory Requirements and Timeline

The incorporation process requires approvals from key government bodies, specifically the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Coal (MoC). The company has stated that the final name and incorporation date of the IHC will be communicated once these formalities are completed.

Corporate Governance Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the relevant SEBI circular dated November 11, 2024. The disclosure was signed by B.P. Dubey, Executive Director (Company Secretary) and Compliance Officer, ensuring proper regulatory adherence.

This strategic move represents Coal India's commitment to diversifying its portfolio and establishing a presence in the critical minerals sector, particularly in South America's resource-rich Chilean market.