Indian Oil Corporation Limited (IOCL) has issued a comprehensive communication to its shareholders regarding Tax Deducted at Source (TDS) procedures for the final dividend recommended for the financial year 2025-26.

Dividend Recommendation and Record Date

The Board of Directors recommended a dividend of ₹1.25 per share for FY 2025-26 at its meeting held on May 18, 2026. The company has fixed Friday, August 14, 2026 as the record date for determining entitlement of members to receive this dividend. The dividend, if declared at the AGM, will be paid within 30 days of declaration.

TDS Provisions under Income-tax Act, 2025

Under the Income-tax Act, 2025 (ITA 2025), dividend income is taxable in the hands of members, and the company is required to deduct tax at source at the time of payment.

For Resident Members

  • Standard TDS Rates: 10% for members with valid PAN; 20% for members with invalid PAN/not having PAN/PAN not linked with Aadhar
  • Exemption Conditions: No TDS if total dividend during FY 2026-27 does not exceed ₹10,000, or if member submits duly filled and signed Form 121 (corresponding to erstwhile Form 15G/15H) under Section 393(6) of ITA 2025 along with self-attested PAN card
  • Additional Exemptions: Members can submit exemption certificate/lower deduction certificate under Section 395(1) of ITA 2025
  • Special Categories: Specific exemptions provided for insurance companies, business trusts, mutual funds, Alternative Investment Funds (AIFs), provident funds, superannuation funds, gratuity funds, pension funds, ESI funds, and corporations exempt from income-tax

For Non-Resident Members

  • Standard Withholding Tax: 20% (plus applicable surcharge and cess) or as notified by Government of India
  • DTAA Benefits: Non-resident members can opt for Double Tax Avoidance Agreement provisions if more beneficial, requiring submission of:
  • Self-attested PAN card or details as per Rule 217 of IT Rules 2026
  • Tax Residency Certificate for FY 2026-27
  • Electronically filed Form 41 (corresponding to erstwhile Form 10F)
  • Comprehensive self-declaration confirming tax residency, beneficial ownership, and compliance with DTAA conditions
  • Special Categories: Foreign Institutional Investors/Foreign Portfolio Investors subject to 20% TDS or DTAA rates; Sovereign Wealth Funds and Pension Funds can claim exemption under Schedule V (Table S. No. 7) of ITA 2025

Submission Requirements and Deadline

All relevant forms, declarations, and documents must be uploaded with KFin Technologies Limited, the Registrar and Transfer Agent, at https://ris.kfintech.com/form15 on or before August 16, 2026. Resident non-individual members and non-resident non-individual members may alternatively submit through their respective custodians registered on the NSDL platform. No communication/documents will be accepted after this deadline.

Additional Provisions

  • Rule 203 Declaration: Members can declare for transfer of TDS credit to beneficial shareholders if dividend income is assessable in hands of person other than member
  • Company Discretion: The company is not obligated to apply beneficial DTAA rates and will conduct necessary due diligence
  • Member Responsibility: Members are responsible for indemnifying the company against any tax demands arising from misrepresentation or omission of information
  • Contact Information: Shareholders should contact their Depository Participant (for electronic holdings) or KFin Technologies Limited (for physical holdings) for updating personal details

Annexures Provided

The communication includes five annexures:

  • Annexure 1: Blank Form 121
  • Annexure 2: Sample Filled Form 121
  • Annexure 3: Self-Declaration Format for Resident Non-Individual Members
  • Annexure 4: Self-Declaration Format for Non-Resident Members
  • Annexure 5: Format for Declaration under Rule 203 of IT Rules, 2026

All documents are available for download from the company's website at https://iocl.com/pages/notices-overview.