Tata Power Dividend Tax Communication; Shares Rise 2.72%

Mumbai, May 26: Tata Power Company Limited has issued a communication to shareholders outlining the tax deduction at source (TDS) process applicable to the proposed dividend of ₹2.50 per equity share for FY2025-26.

The company stated that its Board had recommended a dividend of ₹2.50 per equity share of face value ₹1 each, equivalent to 250%, for the financial year ended March 31, 2026. The dividend remains subject to shareholder approval at the company’s 107th Annual General Meeting (AGM), according to an exchange filing.

According to the shareholder communication, the AGM is scheduled for July 7, 2026, while the record date has been fixed as June 23, 2026. The dividend payment date is scheduled for July 10, 2026, subject to approval at the AGM.

Tata Power said the communication has been sent to shareholders to explain applicable tax rates, documentation requirements and procedures for availing lower or nil withholding tax under provisions of the Income Tax Act, 2025.

Stock Market Snapshot

Tata Power shares traded higher during Tuesday’s session.

As of 11:13 a.m. IST on May 26, 2026, the stock was trading at ₹424.80, up ₹11.25 or 2.72% from the previous close of ₹413.55.

The Tata Power share price advanced alongside broader market activity, with investors also taking note of the company’s dividend-related update and upcoming shareholder milestones.

During the session, the stock touched ₹425.95 and a low of ₹414.00, according to market data.

Key Dates And Tax Compliance Requirements

The company requested shareholders to submit applicable tax-related documents on or before June 22, 2026, to enable determination of the appropriate withholding tax rate.

For resident shareholders, TDS generally applies at 10% where valid PAN details are available. Higher withholding rates may apply in cases involving invalid PAN details or non-compliance with PAN-Aadhaar linkage requirements, as specified under the Income Tax Act, 2025.

Non-resident shareholders may claim benefits under applicable Double Taxation Avoidance Agreements (DTAA), subject to submission of prescribed documents, including tax residency certificates and related declarations.

The company also clarified that dividend income remains taxable in the hands of shareholders under prevailing tax regulations.

Company Background

Tata Power Company Limited is one of India’s largest integrated power utilities, with operations spanning conventional and renewable power generation, transmission, distribution and power trading.

The company has continued expanding its renewable energy portfolio, solar manufacturing operations, transmission infrastructure and distribution businesses across multiple regions.

Tata Power remains a key participant in India’s energy transition strategy, with investments across clean energy, storage, electric vehicle charging and grid modernisation initiatives.

Conclusion

The filing primarily relates to shareholder compliance requirements ahead of the proposed FY2025-26 dividend payment and does not involve any change to the dividend recommendation already announced by the board.

Investors will now watch the upcoming AGM on July 7, 2026, where shareholders will vote on the proposed dividend before the scheduled payout date of July 10, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/TATAPOWER/Tata-Power-Company-Limited
• https://nsearchives.nseindia.com/corporate/VPTPCL_26052026105436_Final_TDS.pdf