IOC Announces ₹2 per Share Dividend, Setting Record Date and Income Tax Requirements

Indian Oil Corporation Ltd Announces Second Interim Dividend for FY26

Key Highlights

• Indian Oil Corporation Ltd (IOC) declared a 20% interim dividend for the financial year 2025-26.
• The dividend, equivalent to ₹2 per equity share of face value ₹10 each, will be paid to eligible shareholders on or before April 5, 2026.
• The record date for determining eligible shareholders is Thursday, March 12, 2026.

Dividend Details

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The company's board of directors approved the second interim dividend at a meeting held on March 6, 2026. The dividend is a reward to shareholders for holding the company's shares and is typically paid in cash. However, it can sometimes be issued in the form of additional shares.

Tax Compliance

Indian Oil has informed its shareholders about the tax deduction at source (TDS) provisions applicable to the dividend payout. The company will deduct TDS under Section 194 of the Income-tax Act, 1961, as amended by the Finance Act, 2020. The TDS rate will be 10% for resident shareholders who have provided a valid Permanent Account Number (PAN) or at the rate notified by the government. However, if the shareholder does not have a valid PAN or the PAN is invalid or not linked with Aadhaar, the TDS rate will increase to 20%.

Eligibility and Exemption

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Only investors who hold shares of the company on the record date are entitled to receive the interim dividend payout. Investors who buy the stock after the ex-dividend date will not be eligible for the announced dividend. Shareholders who wish to claim exemption or a lower rate of tax must upload the required documents with the company's registrar and transfer agent KFin Technologies by March 12, 2026.

Company Overview

Indian Oil is India's largest oil refining and fuel marketing company, classified as a Maharatna public sector enterprise. The company has greater financial autonomy and the ability to undertake large investments without government approval. The PSU stock ended 1.9% lower at ₹168.25 on BSE.