Updates

KPEL/MAT/DIV/TDS/SEP/2026/673 September 5, 2026 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai - 400001 Bandra (E), Mumbai - 400051 Scrip Code: 539686 Symbol: KPEL Sub.: Communication to Shareholders ‐ Intimation on Tax Deduction on Dividend Dear Sir/Madam, Pursuant to the provisions of Income-Tax Act, 2025 (the “IT Act”), dividend income is taxable in the hands of the shareholders. Accordingly, Company is required to withhold tax at source from dividends paid to shareholders at prescribed rates (plus applicable surcharge and cess), as may be notified from time to time. In this regard please find enclosed herewith a communication explaining the process to be followed along with the necessary annexures. This communication is also available at the website of the Company at www.kpenergy.in. This is for your information and records. Thanking you, Yours faithfully, For K.P. Energy Limited Nisha Agarwal Company Secretary & Compliance Officer Encl.: a/a K.P. ENERGY LIMITED CIN: L40100GJ2010PLC059169 Regd. Office: ‘KP House’, Near KP Circle, Opp. Ishwar Farm Junction BRTS, Canal Road, Bhatar, Surat 395017, Gujarat Phone No: +91 261 2234757, Email Id: info@kpenergy.in, Website: www.kpenergy.in Sub: Communication in respect of deduction of tax at source on Final Dividend pay-out. Dear Shareholder, We are pleased to inform you that the Board of Directors of the Company at its Meeting held on May 7, 2026, has recommended a final dividend at the rate of 5% i.e. Re. 0.25 (Twenty-Five Paisa only) per equity share having a face value of Rs. 5/- each for the financial year 2025-26. The said dividend will be paid to those shareholders whose names appear in the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on the record date decided by the Board of Directors i.e. September 22, 2026. As per the Income Tax Act, 2025 (the Act), dividend paid and distributed by a Company is taxable in the hands of shareholders. The Company shall, therefore, be required to deduct taxes at source at the time of making payment of the dividend, if approved by the Shareholders at the ensuing Annual General Meeting (AGM). The tax deduction rates would vary depending on the residential status of the shareholders, documents submitted by the shareholders and accepted by the Company. This communication provides a brief of the applicable Tax Deduction at Source (TDS) provisions under the Act for Resident and Non-Resident Shareholder categories. I. For Resident Shareholders: Tax is required to be deducted at source under Section 393(1) read with 393(4) of the Act, at the rate of 10% on the amount of dividend where Shareholders have registered their valid Permanent Account Number (PAN). In case, Shareholders do not have PAN/invalid PAN/PAN not linked with Aadhaar, TDS at the rate of 20% shall be deducted under Section 397(2) of the Act. a. Resident Individuals: No tax shall be deducted on the dividend payable to resident individuals if - i. Total dividend amount to be received by them during the Tax Year (TY) 2026-27 does not exceed Rs. 10,000; or K.P. ENERGY LIMITED 1 ii. The Shareholder provides Form 121, provided that all the required eligibility conditions are met. Please note that all fields are mandatory to be filled up and the Company may at its sole discretion reject the form, if it does not fulfil the prescribed requirement under the Act. Click here to access Form 121 Form 121 needs to be furnished only if dividend amount exceeds Rs. 10,000. Considering that the Company has declared dividend of Re. 0.25/- per share, need for submitting Form Form 121 will arise only if your shareholding exceeds 40,000 shares. iii. Exemption certificate is issued by the Income-tax Department, if any b. Resident Non-Individuals: No tax shall be deducted on the dividend payable to the following resident non-individuals where they provide details and documents as per the format attached in Resident Tax Declaration i. Insurance Companies: Self declaration that it qualifies as 'Insurer' as per section 2(7A) of the Insurance Act, 1938, and has full beneficial interest with respect to the equity shares owned by it along with self-attested copy of PAN card and certificate of registration with Insurance Regulatory and Development Authority (IRDA)/ Life Insurance Corporation of India (LIC)/ General Insurance Corporation of India (GIC). ii. Mutual Funds: Self-declaration that it is registered with Securities and Exchange Board of India (SEBI) and as specified at Schedule VII to section 11 of the Act along with self-attested copy of PAN card and certificate of registration with SEBI. iii. Alternative Investment Fund (AIF): Self-declaration that its income is exempt under Schedule V of Section 11 of the Act, and they are registered with SEBI as Category I or Category II AIF along with self- attested copy of the PAN card and certificate of AIF registration with SEBI. iv. Business Trust (ReIT / InVIT): Self-declaration that its income is exempt under Schedule V of Section 11 of the Act and are the beneficial owner of the share/shares held in the Company; and are not subject to withholding tax as per section 393(1) of the Act, 2025 and we are submitting a self-attested copy of the PAN card. v. Other Non-Individual shareholders: Self-attested copy of documentary evidence supporting the exemption along with self-attested copy of PAN card. c. In case, Resident Shareholders (both individuals or non-individuals) provide certificate under Section 395(1) of the Act, for lower/NIL withholding of taxes, rate specified in the said certificate shall be considered, on submission of self-attested copy to the Company. II. For Non-resident Shareholders: a. As per Domestic Tax Law: Taxes are required to be withheld in accordance with the provisions of Section 393(2) of the Act, as per the rates as applicable. As per the relevant provisions of the Act, the K.P. ENERGY LIMITED 2 withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) on the amount of dividend payable to them. In case, non-resident shareholders provide a certificate issued under Section 395(1) of the Act, for lower/ Nil withholding of taxes, rate specified in the said certificate shall be considered, on submission of self-attested copy of the same. b. As per Double Tax Avoidance Agreement (DTAA): As per Section 159 of the Act, the non-resident shareholder has the option to be governed by the provisions of DTAA between India and the country of tax residence of the Shareholder, if they are more beneficial to them. For this purpose, i.e. to avail DTAA benefits, the non-resident Shareholders are required to provide the following: i. Self-attested copy of the PAN card allotted by the Indian Income Tax authorities. ii. Self-attested copy of Tax Residency Certificate (TRC) for the year 2026-27 or calendar year 2026, valid as on record date, obtained from the tax authorities of the country of which the Shareholder is a resident. iii. Self-declaration in Form 41 for Tax Year 2026-27 executed in electronic mode from Income tax portal which can be downloaded from https://eportal.incometax.gov.in/. Click here to access Procedure to file Form 41. iv. Self-declaration by Shareholder of meeting treaty eligibility requirement and satisfying beneficial ownership requirement (TY 2026-27). Click here to access Non-Resident Tax Declaration (Required only where tax treaty benefit needs to be availed). v. In case of Foreign Institutional Investors and Foreign Portfolio Investors, copy of SEBI registration certificate. vi. In case of Shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidences demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA. It is recommended that shareholder should independently satis [Showing first 8,000 characters — download PDF for full document]