Coal India Limited has approved the payment of its second interim dividend of ₹10.25 per equity share for the Tax Year 2026-27. The dividend will be paid to shareholders on record as of November 4, 2026. The announcement also details the applicable Tax Deduction at Source (TDS) provisions for resident and non-resident shareholders, including various exemption criteria and documentation requirements as per the Income Tax Act, 2025.
Coal India Announces Second Interim Dividend
The Board of Directors of Coal India Limited, in its meeting held on October 29, 2026, has approved the payment of the second interim dividend of ₹10.25 per equity share for the Tax Year 2026-27. The dividend payout is based on an equity share face value of ₹10 each.
Record Date and Payment Details
The dividend will be disbursed to shareholders who hold equity shares of the company as of Wednesday, November 4, 2026, which has been set as the Record Date. Shareholders are advised that the dividend will be paid exclusively through RBI-approved electronic modes, and no physical warrants or cheques will be dispatched.
Tax Deduction at Source (TDS) Information
In accordance with the Income Tax Act, 2025, the company is required to deduct tax at source (TDS) on dividend payments. The applicable TDS rate will depend on the status and category of the shareholders at the time of payment.
Resident Shareholders
For any resident shareholder, the TDS rate is 10%. However, no deduction is required in cases where:
- The dividend income paid or expected to be paid to a resident individual shareholder during Tax Year 2026-27 does not exceed INR 10,000/-.
- The shareholder provides an attested copy of their PAN along with documentary evidence of exemption from TDS provisions through any circular or notification.
- The shareholder submits a declaration in Form No.121 (erstwhile Form 15G/15H), fulfilling eligibility conditions for individuals aged 60 years and older. It is crucial to declare the total expected dividend income for the current Tax Year.
Failure to furnish a PAN may result in a tax deduction rate of 20% as per Section 397 of the Act.
Special Categories for Resident Shareholders
- Mutual Funds: Require a self-attested copy of registration certificate with SEBI, PAN card, and a self-declaration. Beneficial owners must also be declared.
- Insurance Companies: Need documentary evidence of Section 393 of the Income Tax Act, 2025 applicability, a self-attested PAN card copy, and registration certification from IRDAI.
- Entities exempt under Section 11 of the Act: Require a declaration from an authorized signatory, with an affixed stamp for TDS exemption claim, and a self-attested PAN card copy.
- Benefit under Rule 203: Declarations from intermediaries/stock-brokers and beneficial shareholders are required if shares are held through Clearing Members.
- Corporation established by or under a Central Act: Must provide documentary evidence of exemption under Section 393 of the Income Tax Act, 2025, along with a self-attested PAN card copy.
- Shareholder submitting Order under section 395 of the Act: Needs a lower/NIL withholding tax certificate from Income Tax authorities and a self-attested PAN card copy.
- Alternative Investment Fund (AIF): Requires a declaration of exemption under Schedule V(1) of the Act and proof of establishment as Category I or II AIF.
Other Resident Shareholders
- Other resident shareholder without PAN / Invalid PAN: A 20% TDS rate applies. Shareholders are urged to update their PAN details with depositories or the Company’s Registrar & Share Transfer Agent.
- Minor: If seeking exemption, Form 121 must be filed. If tax has been withheld, credit may be transferred to the person in whose hands the income is assessable, provided a declaration is filed.
Non-Resident Shareholders
For any non-resident shareholder / Foreign Institutional Investors (FII) / Foreign Portfolio Investors (FPI), the TDS rate is 20% (plus applicable surcharge and cess) or the Tax Treaty rate, whichever is lower. To avail Tax Treaty benefits, shareholders must submit:
- A copy of the PAN Card, if allotted by Indian authorities.
- A self-attested copy of the Tax Residency Certificate (TRC) valid as on the record date.
- Electronically generated Form 41 from the Income Tax portal.
- A self-declaration confirming eligibility for tax treaty benefits, beneficial ownership of dividend income, and compliance with other treaty conditions.
Shareholders Submitting Order under section 395 of the Act (non-residents): Require a Lower/NIL withholding tax certificate obtained from Income Tax authorities, along with a self-attested PAN card copy, valid for TY 2026-27.
Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area (under Section 176(1) of the Act): TDS is deducted at the highest of the prescribed rate, rates in force, or 30% (plus applicable surcharge and cess).
Other Provisions
- Sovereign Wealth Fund, Pension Funds, etc. (under Schedule V (7)): Nil TDS upon submission of self-declaration and registration/incorporation certificate.
- Declaration regarding opting out of Sec 202: For FY 2023-24 onwards, companies must declare in quarterly TDS returns whether shareholders opt for the old or new regime under Section 202. Non-resident shareholders must provide a declaration accordingly. If no declaration is received, the non-resident shareholder will be assumed to be not opting out of Section 202.
Important Notes for Shareholders
- If shares are held under multiple accounts with a single PAN, the highest applicable tax rate will be considered for the entire holding.
- When filing Form 121, shareholders must accurately estimate their total dividend income for the current financial year.
- The total dividend for the Tax Year (TY) 2026-27 aggregates to ₹21.00/- per equity share, comprising the 1st Interim Dividend (₹5.50), Final Dividend FY 2025-26 (₹5.25), and the 2nd interim Dividend TY 2026-27 (₹10.25).
- All required documents and declarations for tax on dividend, including Forms 121, PAN copies, and Tax Residency Certificates, should be submitted through the designated web portal: https://taxportal.coalindia.in. The portal is open from Friday, October 30, 2026, to Friday, November 6, 2026 (cut-off date).
- In case of technical issues, documents can be submitted via email at [email protected] during the specified period.
- Timely submission of documents by the cut-off date is crucial to avoid higher tax deduction at source.
- If dividend income on which tax has been deducted is assessable to another person, the deductee must upload a declaration with details of the actual beneficiary by the cut-off date.
- The company is not liable for taxes once deducted. Shareholders will be responsible for any income tax demand arising from misrepresentation or omission of information.
- Individual shareholders are advised to link their Aadhar number with PAN. Failure to do so may result in a higher tax deduction rate of 20% under Section 397 of the IT Act.
- Shareholders holding shares in physical form should submit a scanned copy of a covering letter, cancelled cheque leaf with shareholder name and bank account details, and a copy of their PAN card to the Company’s RTA, M/s Alankit Assignments Limited.
- TDS certificates will be available for download from the dedicated online Tax portal: https://taxportal.coalindia.in. Certificates will not be mailed separately.
Disclaimer: This communication is for informational purposes only and should not be construed as tax advice.
Source: BSE
