HEG Limited recommended a final dividend of Rs 3.40 per equity share for the financial year 2025-26. The board approved the dividend at its meeting held on 29th April 2026. The dividend of 170% on the face value of Rs 2 per share is subject to shareholder approval at the 54th Annual General Meeting.
HEG informed the exchanges about an email communication sent to shareholders regarding amended tax deduction at source provisions on dividends under the Income-tax Act, 2025. Under the new framework, dividends paid by a company will be taxable in the hands of shareholders. HEG will deduct TDS at applicable rates at the time of dividend payment.
For resident individual shareholders, no TDS will be deducted if the total dividend paid during tax year 2026-27 does not exceed Rs 10,000. Resident shareholders with a valid PAN updated with their depository participant or the registrar will face a 10% TDS rate. Those without a valid PAN or with an inoperative PAN will face a 20% rate. Shareholders holding a lower or nil tax deduction certificate under Section 395(1) of the Act will have tax deducted at the rate specified in the certificate.
Non-resident shareholders face varying TDS rates depending on their category. FIIs and FPIs will attract a 20% rate plus applicable surcharge and cess, or a beneficial tax treaty rate. Category III AIFs located in an International Financial Services Centre will face a 10% rate. Other non-resident shareholders face a 20% rate or a beneficial DTAA rate. Sovereign wealth funds and pension funds notified by the central government qualify for a nil TDS rate.
Shareholders must submit the required declarations and documents by 19th June 2026 to enable the company to determine and deduct TDS at a rate lower than the prescribed rate. Documents must be sent via email to tdsfdiv170@lnjbhilwara.com. The dividend will be paid or dispatched within 30 days from the date of the ensuing AGM, subject to shareholder approval.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.