Updates

HFCL/SEC/2026-27 July 16, 2026 The BSE Ltd. The National Stock Exchange of India Ltd. 1st Floor, New Trading Wing, Rotunda Building Exchange Plaza, 5th Floor, C – 1, Block G Phiroze Jeejeebhoy Towers, Dalal Street, Fort Bandra – Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 400051 corp.relations@bseindia.com cmlist@nse.co.in Security Code No.: 500183 Security Code No.: HFCL Subject: Intimation to Shareholders on Tax Deduction on Dividend Dear Sir(s)/ Madam, Pursuant to the provisions of the Income Tax Act, 2025 and the Rules framed thereunder, dividend paid or distributed by a ompany is taxable in the hands of the shareholders and accordingly, the Company is required to deduct TDS on the Dividend. In this regard, please find enclosed herewith a copy of the e-mail communication sent to all the shareholders, whose email addresses are registered with the Depositories/the Company/the Registrar and Share Transfer Agent, inter-alia, indicating the process and documentation required for claiming tax exemption on dividend, if declared at the ensuing 39th Annual General Meeting and payable during FY 2026-27. The above information is also available on the website of the Company at www.hfcl.com. Kindly take the same on your records. Thanking you. Yours faithfully, For HFCL Limited (Manoj Baid) President & Company Secretary Encl. as above Regd. Office & Works: 8, Electronics Complex, Chambaghat, Solan-173213 (H.P.) Tel: (01792) 230644, 230645, 230647 Fax: (01792) 231902 Corporate Identity Number: L64200HP1987PLC007466 HFCL LIMITED (Corporate Identity Number: L64200HP1987PLC007466) Regd. Office: 8, Electronics Complex, Chambaghat, Solan-173213 (Himachal Pradesh) Tel: +91-1792-230644; Fax: +91-1792-231902: Website: www.hfcl.com ; E-mail: secretarial@hfcl.com Name : DPID/Client ID : THIS COMMUNICATION REQUIRES YOUR IMMEDIATE ATTENTION Dear Shareholder, We are pleased to inform you that the Board of Directors of your Company at its meeting held on April 30, 2026 has recommended a dividend @20%, i.e. Re.0.20 per equity share of face value of ₹1/- , for the financial year 2025-26, which shall be paid within 30 days of its declaration of the same by the shareholders of the Company at the ensuing Annual General Meeting (AGM). As you may be aware, in terms of the provisions of the Income-tax Act, 2025, (the “Act” or “IT Act 2025”) as amended by the Finance Act, 2026, applicable with effect from April 1, 2026, dividend declared and paid by the Company is taxable in the hands of its shareholders. Accordingly, the Company shall be required to deduct tax at source from the said dividend at prescribed rates. The aforesaid dividend, if approved by the shareholders at the ensuing AGM, will be payable to those shareholders whose name appear in the Register of Members of the Company or in the records of the Depositories Participants, as on the record date, within the prescribed timeline as per applicable statute. Pursuant to SEBI Master Circular dated February 06, 2026 issued to the Registrars to an Issue and Share Transfer Agents (RTA ) read with other related SEBI Circulars and Regulation 12 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, SEBI has mandated that dividend to the shareholders holding shares in physical mode shall be paid only through electronic mode. Such payment to the eligible shareholders holding physical shares shall be made only after they have furnished their PAN, Choice of Nomination(optional), Contact Details (Postal Address with PIN and Mobile Number) Bank Account Details and Specimen Signature for their corresponding physical folios to the Company or the RTA. Members holding shares in physical form are requested to update their KYC details such as PAN, Contact details (Postal Address with PIN, email and Mobile Number), Bank A/c details and Specimen signature to their corresponding folio numbers in relevant forms with the Company’s RTA i.e. MCS Share Transfer Agent Limited, 179-180, 3rd Floor DSIDC Shed, Okhla Industrial Area, Phase-I, New Delhi – 110020, Ph. No. +91-11-41406149, email ID: admin@mcsregistrars.com to avail uninterrupted services and electronic credit of dividend in bank account. The provisions of the Income-tax Act, 2025 have come into force with effect from 1 April 2026, replacing the earlier Income-tax Act, 1961. Accordingly, for the purposes of this communication, all references to applicable sections, rules, rates and prescribed forms have been made in accordance with the provisions of the Income-tax Act, 2025 and the Income-tax Rules framed thereunder, as applicable for the tax year (financial year) 2026–27. As per the provisions of the Act, the Company would be required to apply withholding tax / deduct taxes at source (TDS) at the prescribed rates on the dividend paid to its shareholders. The withholding tax rate would vary depending on the residential status of the shareholder and the documents submitted by them and as acceptable to the Company. This communication summarizes the applicable TDS provisions in accordance with the provisions of the Income-tax Act, 2025, for various categories, including Resident or Non- Resident members. TDS on Dividend payment to Resident Shareholders: SrParticular Withhol Declaration / Documents Required . s ding Tax Rate 1 No Tax Nil NA shall be deducted in the case of resident individual members if the amount of such dividend in aggregate paid or likely to be paid during the Tax Year (FY) does not exceed ₹10,000 (Rupees Thousand Only) 2 - Valid PAN 10% No document is required (if no exemption is sought) updated in Company’ s Register Members 3 No PAN/ 20% - No document is required (if no exemption is sought) Invalid Pan/ Valid PAN not updated in Company’ s Register Members/ PAN not linked with Aadhaar 4 Sharehold Nil Self-attested Copy of PAN card with Form 121 duly filled and er signed. Submitting Declaration in Form 121, fulfilling prescribed conditions. - (Format of Form Form 121 attached). The form can be downloaded from the Income no.121 Tax website. For claiming exemptions, the said form can be accessed online by clicking on the following link: Form 121 Please note that all fields are mandatory to be filled up and Company may at its sole discretion reject the form if it does not fulfil the requirement of law. 5 Sharehold Rate Self-attested Copy of PAN card with Self-attested- Lower/nil tax er provided deduction Certificate issued by Income Tax Authority. submitting in the Lower/Nil tax deduction certificate for the tax year (FY) 2026-27 lower / nil Certifica obtained from tax authority to be submitted to claim the lower tax tax te - rates. deduction certificate issued by Income departmen t - under Section 395 of Income Tax Act, 2025. 6 SecuritisatNil A Self-attested copy of the registration/ document evidencing the ion Trust shareholder as a securitisation trust (as defined in clause (d) of section 221(6)). 7 Mutual 10%/Nil Self-attested Copy of PAN card Fund A declaration that they are governed by the provisions of section 11 specified [schedule VII (20)/(21)] of the Act along with self-attested copy of under relevant registration documents. The required documents can be Schedule accessed online by clicking on the following link: VII (Table: https://cdn.prod.website- Sl. No. 20 files.com/69e0036b695965871f0524aa/6a56082bb264b602d75b21 or 21) of a4_Resident_Tax_Declaration-Category-Selection.pdf the Act 8 Sharehold 10%/Nil Self-attested Copy of PAN card and a declaration that they are ers to beneficial owners of shares held, along with self-attested copy of whom relevant registration documents. section 393 of the Income Tax Act, 2025 does not apply, such as Governme nt, RBI, corporatio establishe d by the Central Act like LIC, GIC, etc. 9 Category I Nil Self-attested Copy of PAN card and SEBI AIF registration certificate and II to claim benefit under section 400(1) read with Schedule V of the Alternative Income Tax Act, 2025 Investmen t Fund 10 Provi [Showing first 8,000 characters — download PDF for full document]