Indian Oil Corporation has approved a second interim dividend of ₹2.00 per share (20% of face value ₹10) for FY 2025-26, with record date on March 12, 2026 and dividend payable on or before April 5, 2026.

Indian Oil 2nd Interim Dividend – Key Highlights

• Company: Indian Oil Corporation Limited (IOC), Maharatna PSU, symbol IOC (NSE), code 530965 (BSE).

• Dividend type: Second interim dividend for FY 2025-26.​
• Dividend amount: ₹2.00 per equity share, i.e., 20% of face value ₹10.​
• Board meeting date: March 6, 2026 (1:00 PM to 1:30 PM) where the dividend was approved.​
• Record date: Thursday, March 12, 2026 to determine eligible shareholders.​
• Payment timeline: Dividend to be credited on or before April 5, 2026 to eligible shareholders’ bank/demat-linked accounts.​

TDS (Tax Deducted at Source) on Indian Oil 2nd Interim Dividend

For Resident Shareholders (individuals, HUFs, etc.):​

• Valid PAN: TDS at 10% (or as notified under Income Tax Act).
• No/invalid PAN: TDS at 20%.
• Dividend below ₹10,000 in FY (aggregate of 2024-25 final, 1st and 2nd interim FY 2025-26): No TDS, subject to conditions and declarations.​
• Form 15G / 15H:
  • Form 15G: Resident individuals below 60 with total income below taxable limit can submit Form 15G + self-attested PAN to avoid TDS.
  • Form 15H: Resident individuals 60+ (senior citizens) can submit Form 15H + PAN to claim nil deduction, subject to conditions.​

For Non-Resident Shareholders (NRI, FPI, FII, non-resident companies):​

• Default TDS at 20% + surcharge + cess.
• Lower rate possible under applicable DTAA (tax treaty) if:
  • Valid Tax Residency Certificate (TRC).
  • Form 10F.
  • Beneficial ownership declaration and other documents submitted in time.​

Document Submission:

• All TDS-related documents (Form 15G/15H, TRC, Form 10F etc.) must be uploaded with KFin Technologies Ltd, the Registrar & Transfer Agent, via https://ris.kfintech.com/form15 on or before March 12, 2026.​
• No changes/requests will be considered after the cut-off date.​

Strengths

• Consistent shareholder reward policy with multiple dividends in FY 2025-26, reflecting strong cash flows.
• Backed by robust Q3 FY26 performance with net profit jump and higher GRMs, supporting sustainable payout capacity.
• Maharatna PSU with diversified operations across refining, pipelines, marketing, petrochemicals, natural gas – underlying business strength.
• Dividend yield support for long-term investors, enhancing overall total return from IOC stock.
• Clear TDS communication and digital process via KFintech improves compliance and transparency for resident and non-resident shareholders.​

Risks

• Dividend amount (₹2 per share) may be modest relative to share price volatility, limiting short-term upside purely from payout.
• Dividend sustainability depends on refining margins (GRM), crude price cycles and government pricing/intervention in fuels.
• As a PSU, dividend policy can be influenced by government cash needs, possibly affecting optimal capital allocation.
• High capex plans in refining, petrochemicals, clean energy and pipelines may compete with future dividend payouts.
• TDS complexity (PAN, DTAA, forms) can cause lower net receipts or delayed refunds for investors who do not submit documents correctly or on time.​

FAQs

1. What is the amount of the 2nd interim dividend announced by Indian Oil?
Indian Oil Corporation has declared a second interim dividend of ₹2.00 per equity share, equivalent to 20% of the face value ₹10 for FY 2025-26.​

2. What is the record date for Indian Oil’s 2nd interim dividend?
The record date to determine eligible shareholders for this interim dividend is Thursday, March 12, 2026.​

3. When will the 2nd interim dividend be paid to shareholders?
The dividend will be paid/credited on or before April 5, 2026 to all shareholders whose names appear in the register/beneficial owners list as on the record date.​

4. How much TDS will be deducted on Indian Oil’s second interim dividend for resident shareholders?
For resident shareholders with valid PAN, TDS is 10%; for no/invalid PAN, TDS is 20%. No TDS is deducted if the total dividend from IOC in the financial year is below ₹10,000, subject to conditions and submission of required forms.​

5. How can I avoid or reduce TDS on my Indian Oil dividend as a resident individual?
Eligible residents can submit:

• Form 15G (below 60 years), or
• Form 15H (60 years or above),
  along with self-attested PAN, through KFintech portal (https://ris.kfintech.com/form15) on or before March 12, 2026, to seek nil/lower TDS where legally allowed.​

6. What about TDS for non-resident/NRI investors in Indian Oil?
For non-residents, TDS is 20% plus surcharge and cess, or lower DTAA rate if TRC, Form 10F and beneficial ownership declarations are submitted before the deadline.​

7. Why is Indian Oil able to pay a second interim dividend in FY 2025-26?
Indian Oil recently reported strong Q3 FY26 profits and solid operating performance, which supports a second interim dividend as part of its capital-return strategy to shareholders.