Mahanagar Gas Limited has issued a formal communication regarding the Tax Deduction at Source (TDS) applicable on the recently declared Interim Dividend for Financial Year 2025-26. The Board declared a dividend of Rs. 12/- (120%) per share on February 07, 2026, with a Record Date of February 13, 2026. Shareholders must ensure their KYC and PAN details are updated by February 17, 2026, to claim the correct tax rate, especially for resident shareholders whose dividend payout exceeds Rs. 10,000.
Interim Dividend Announcement Details
Mahanagar Gas Limited (MGL) formally announced the declaration of an Interim Dividend for the Financial Year 2025-26 following the Board Meeting held on Saturday, February 07, 2026. The dividend declared stands at Rs. 12/- (i.e., 120%) per equity share of Rs. 10/- each.
The crucial deadline for determining entitlement—the Record Date—is fixed as Friday, February 13, 2026. The dividend payment is scheduled to be made to all entitled shareholders within 30 days of the declaration date via electronic transfer.
Tax Deduction at Source (TDS) Requirements
Pursuant to the Finance Act, 2020 amendments, the Company is obligated to withhold taxes at source on dividend payments. Shareholders are urgently requested to ensure all necessary details are updated with their respective Depository Participants (for demat shares) or the Registrar and Transfer Agent (for physical shares) on or before Tuesday, February 17, 2026.
For Resident Shareholders
Tax will generally not be deducted if the total dividend paid in a financial year does not exceed Rs. 10,000 for a Resident Individual Shareholder. For payments exceeding this threshold, the TDS rates vary based on documentation:
- With PAN: TDS rate is 10%. Shareholders must verify/update their PAN and residential status.
- Without PAN/Invalid PAN: TDS rate is 20%. Failure to link PAN with Aadhaar renders the PAN invalid for tax purposes, leading to deduction at the higher rate.
- Exemption Claims: Shareholders eligible for NIL deduction can submit Form 15G or Form 15H, or obtain a lower/NIL withholding certificate under Section 197 of the Income Tax Act, 1961.
For Non-Resident Shareholders
The standard deduction rate is 20% plus applicable surcharge and cess, or the lower rate prescribed under the relevant Tax Treaty (whichever is lower).
- To claim the beneficial Tax Treaty rate, Non-Resident Shareholders (including FIIs/FPIs) must submit several documents by the deadline, including a copy of their PAN (if available), a Valid Tax Residency Certificate (TRC), and a self-declaration in the electronic format of Form 10F (as mandated by Notification No 03/2022).
- If a Lower/NIL withholding tax certificate under Section 197 is provided, the corresponding rate will be applied.
Mandatory KYC and Bank Account Updates
To ensure timely dividend credit, all shareholders must comply with recent SEBI regulations regarding electronic payments:
- Shareholders holding shares in dematerialized mode should update details (PAN, Contact, Bank Account, Signature) with their depositories.
- Shareholders holding physical shares must ensure KYC details are updated with the Company’s Registrar, MUFG Intime India Private Limited, on their folios.
The Company has clearly stated that communications regarding tax determination or deduction received after Tuesday, February 17, 2026, will not be entertained for the purpose of determining TDS rates for this dividend payment. If tax is deducted at a higher rate due to missing documentation, shareholders retain the option to claim a refund when filing their income tax return.
Source: BSE
