Hindustan Copper: Tax to be deducted on FY2024-25 dividend

Hindustan Copper Limited (HCL) informed shareholders on August 29, 2025, about the tax deduction at source (TDS) on the dividend payment for the financial year 2024-25. The board of directors recommended a dividend of INR 1.46 per equity share (face value INR 5/-) at a meeting held on May 27, 2025. This dividend, if approved, will be paid after the annual general meeting scheduled for September 25, 2025.

In accordance with the Finance Act, 2020, dividend income is now taxable in the hands of shareholders. TDS will be applied based on residential status and shareholder category, with a standard rate of 10% for resident shareholders with a valid Permanent Account Number (PAN) and 20% for those without a valid PAN. However, no TDS will be deducted for resident individuals if their total dividend for FY 2025-26 does not exceed INR 10,000. Shareholders are advised to update their PAN and other relevant details with their depository participants or the company’s registrar and transfer agent (RTA), Alankit Assignments Ltd., by September 25, 2025.

Non-resident shareholders will generally face a 20% TDS (plus applicable surcharge and cess), or the beneficial tax treaty rate, whichever is lower. To claim treaty benefits, non-residents must provide a self-attested copy of their PAN Card (if applicable), Tax Residency Certificate (TRC) for FY 2025-26, and a duly signed Form 10F. These documents, along with self-declarations, must be submitted by September 25, 2025, either online via the RTA’s website or via email.