Petronet LNG Limited has issued a communication to its shareholders regarding the deduction of Tax at Source (TDS) on the Final Dividend for the financial year 2025-26. This intimation is made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015.

Nature of the Event

The disclosure is a regulatory communication to shareholders concerning the TDS process on an upcoming dividend payment.

Key Quantitative Figures

The Board of Directors, in its meeting held on 4th May 2026, recommended a Final Dividend of ₹3 per share on equity shares of face value ₹10 each for FY 2025-26.

Parties Involved

  • Registrar and Share Transfer Agent (RTA): Bigshare Services Private Limited
  • Shareholders: Resident and Non-Resident shareholders of the company.

Stated Rationale

The communication is for informing shareholders about the TDS provisions under the Income Tax Act, 2025, that apply to the dividend income and the process to submit necessary documents to avail lower or nil TDS rates.

TDS Provisions and Financial Impact

General Rule: The company is obligated to deduct TDS on the dividend payable to shareholders. The dividend income is taxable in the hands of the shareholders.

For Resident Shareholders:

  • Default Rate: TDS is deducted @ 10% under Section 393(1) [Table 1 Sl. No. 7] of the Income Tax Act, 2025.
  • Exemption for Individuals: No TDS if the aggregate dividend from the company during FY 2026-27 does not exceed ₹10,000.
  • Form 121: Individuals can submit duly signed Form 121 to claim nil deduction if their estimated total income for the year is below the taxable limit.
  • PAN-Aadhaar Linkage: Mandatory. TDS will be deducted at a higher rate of 20% if PAN is invalid, deleted, or inoperative due to non-linking with Aadhaar.
  • Lower/Nil TDS Certificate: Shareholders can obtain a certificate under section 395 of the Act from income-tax authorities and submit a self-attested copy for deduction at the specified rate.
  • Specific Exempt Entities: Detailed TDS rates and required documents are provided for various entities including Mutual Funds (0%), Alternative Investment Funds (AIFs) (0%), Recognized Provident Funds (0%), Approved Superannuation/Gratuity Funds (0%), National Pension Scheme (0%), and entities exempt under Schedule VII of the Act (0%).

For Non-Resident Shareholders:

  • Default Rate: TDS is deducted @ 20% (plus applicable surcharge and cess) under Section 393 [Table 2 Sl. No. 15 or 17] of the Act.
  • DTAA Benefit: Non-resident shareholders can avail a lower tax rate as per the Double Taxation Avoidance Agreement (DTAA) between India and their country of tax residence, if it is more beneficial.
  • Documents for DTAA: To avail DTAA benefits, non-resident shareholders must provide:
  • Self-attested copy of PAN (if available).
  • Self-attested copy of a valid Tax Residency Certificate (TRC).
  • Completed and duly e-filed Form 41.
  • A self-declaration regarding tax residency, beneficial ownership, and lack of permanent establishment in India (Annexure-5).
  • The company retains sole discretion to apply the beneficial DTAA rates based on its review of submitted documents.

Submission Process

  • All duly filled and signed documents/forms (Form 121, Annexure 2, 3, 4, 5) must be sent directly to the RTA's email ID: tds@bigshareonline.com.
  • No communication or documents regarding tax determination/deduction will be considered after the deadline of 11:59 PM IST on Friday, 10th July 2026.
  • Shareholders holding shares under multiple accounts with a single PAN will be taxed at the higher rate applicable to any of the statuses.

Important Notes and Disclaimers

  • The dividend will be paid electronically to members' bank accounts.
  • If TDS is deducted at a higher rate due to non-submission of documents or inoperative PAN, shareholders can claim a refund by filing their income tax return.
  • No claim shall lie against the Company for such taxes deducted.
  • Shareholders are responsible for indemnifying the company against any income tax demands arising from misrepresentation or omission in the information they provide.
  • The company clarifies that this communication is not tax advice and shareholders should consult tax professionals.