Life Insurance Corporation Of India has communicated to its shareholders the tax deduction at source process for the final dividend recommended for the financial year 2025-26. The Board of Directors, in its meeting held on May 21, 2026, recommended a final dividend of Rs 10 per equity share of face value Rs 10 each.
The dividend payout is subject to shareholder approval at the 5th Annual General Meeting scheduled for July 27, 2026. Eligible members whose names appear on the Register of Members or as beneficial owners with NSDL and CDSL as of the record date of June 25, 2026, will receive the dividend.
Final dividend payment will be made on or before August 25, 2026, within 30 days of shareholder approval at the AGM. The corporation is required to deduct tax at source under the Income Tax Act, 2025, with rates varying based on the residential status and entity classification of each member.
For resident members with a valid PAN, TDS will be deducted at 10 percent, while those without PAN will face a 20 percent deduction. Resident individual members receiving total dividend of up to Rs 10,000 during the tax year 2026-27 will not attract any TDS.
Non-resident members will face TDS at 20 percent plus applicable surcharge and cess. Non-resident members seeking lower rates under the Double Tax Avoidance Agreement must submit their Tax Residency Certificate, PAN details, and relevant declarations to the registrar by June 24, 2026.
Shareholders are required to upload relevant documents and declarations at the designated portal before 5:00 PM IST on June 24, 2026, to enable appropriate tax determination. Failure to furnish complete documents within the specified timeline will result in application of the higher TDS rate.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.