Indian Oil Corporation (IOC) has declared an interim dividend of ₹5 per share for the financial year 2025-26. The record date for determining entitlement is set as December 18, 2025. Tax will be deducted at source (TDS) as per applicable Income-tax Act provisions. Resident members with valid PAN will face 10% TDS. Detailed instructions for resident and non-resident members are provided for tax exemptions or lower deduction certificates.
Interim Dividend Details
The Board of Directors of Indian Oil Corporation (IOC) has announced an interim dividend of ₹5 per share for the financial year 2025-26. The announcement was made on December 12, 2025. The record date to determine the eligibility of members for the interim dividend has been fixed as Thursday, December 18, 2025.
Tax Deduction at Source (TDS)
As per the Income-tax Act, 1961, dividend payments are taxable in the hands of the members, therefore, tax will be deducted at source at the time of payment. Here’s a summary of TDS provisions:
For Resident Members:
Tax will be deducted under Section 194 of the Act.
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Members with a valid PAN: 10% TDS or as notified by the Government of India.
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Members with an invalid PAN or PAN not linked with Aadhaar: 20% TDS or as notified by the Government of India.
No tax/lower tax shall be deducted on dividend payable to resident individuals if the total dividend amount does not exceed ₹10,000 during the financial year 2025-26.
Important: The final dividend for 2024-25, paid in September 2025, will also be considered for calculating the threshold exemption limit of ₹10,000. Short deduction of TDS from earlier dividends may result in TDS deduction from the current interim dividend.
Resident members can submit Form 15G (for those below 60 years) or Form 15H (for those 60 years or older) along with a self-attested copy of their PAN card to claim exemption, provided eligibility conditions are met.
For Non-Resident Members:
Tax is required to be withheld in accordance with the provisions of Section 195 and other applicable sections of the Act, at the rates in force, which will be at the rate of 20% (plus applicable surcharge and cess) or as notified by the Government of India on the amount of dividend payable.
Non-resident members can claim benefits under the Double Tax Avoidance Agreement (DTAA) by providing necessary documents.
Important Dates and Information
All required documents for claiming tax treaty benefits or exemptions must be uploaded by December 17, 2025.
Contact KFin Technologies Limited for any queries or for updating personal details.
Source: BSE
