LIC Announces ₹10 Final Dividend for FY26; Shareholders Asked to Update Tax Details
Mumbai, June 15: State-owned insurance giant Life Insurance Corporation of India (LIC) has recommended a final dividend of ₹10 per equity share for the financial year 2025-26, subject to approval by shareholders at the company's fifth Annual General Meeting scheduled for July 27, 2026.
Following approval at the AGM, the dividend will be paid on or before August 25, 2026, to eligible shareholders whose names appear in the records as of June 25, 2026, the company said in a regulatory filing.
LIC Issues Advisory on TDS Deduction for Dividend Income
Along with the dividend announcement, LIC has informed shareholders about the process for tax deduction at source (TDS) on dividend payments. Under the provisions of the Income Tax Act, 2025, dividend income is taxable in the hands of investors, and LIC will deduct TDS at applicable rates based on shareholders' tax status and PAN details.
Resident shareholders with valid PAN details will generally be subject to a 10% TDS rate, while those without valid PAN information may face a higher deduction of 20%.
June 24 Deadline for Submission of Tax Documents
The insurer has asked shareholders seeking lower or nil tax deduction to submit the required declarations, exemption certificates, and supporting documents by 5 p.m. on June 24, 2026.
Non-resident shareholders wishing to avail benefits under Double Taxation Avoidance Agreements (DTAA) have also been advised to submit the prescribed documents within the specified timeline.
Dividend to Be Paid Through Electronic Modes Only
LIC said dividend payments will be made only through RBI-approved electronic channels. Shareholders have been urged to ensure that their bank account and KYC details are updated with their depository participants or with KFin Technologies, the company's registrar and transfer agent.
The company also advised investors to link their PAN with Aadhaar to avoid higher tax deductions.
Strengthening Shareholder Communication
The latest communication underscores LIC's efforts to ensure smooth dividend distribution and compliance with evolving tax regulations while safeguarding the interests of millions of shareholders.