ICICI Lombard General Insurance Company has announced a final dividend of ₹7 per equity share for the financial year ending March 31, 2026. This decision, made during the Board of Directors meeting on April 15, 2026, is subject to approval at the upcoming Annual General Meeting (AGM) scheduled for June 19, 2026.
The company has outlined important dates related to the dividend. The record date is set for May 29, 2026, and the dividend payout will occur on or before July 3, 2026. Shareholders are required to submit any tax-related documents by June 2, 2026, to ensure proper tax deduction at source (TDS).
According to the Income-tax Act, 2025, as amended by the Finance Act, 2026, dividends are taxable in the hands of shareholders. ICICI Lombard will deduct TDS at the prescribed rates when paying the dividend. The TDS rate varies based on the shareholder’s residential status and the documents they provide. For resident shareholders, the TDS rate is 10%, increasing to 20% if a valid PAN is not provided or is inoperative. Shareholders with a total dividend not exceeding ₹10,000 per year or those who provide a duly filled Form 121 with a valid PAN may be exempt from TDS.
Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, will have TDS applied at 20% or the rate specified in a relevant tax treaty, whichever is lower. They may also provide a certificate under Section 395 of the Act for a lower or nil withholding rate.
ICICI Lombard has communicated these details to shareholders via email, ensuring they are informed of the process and documentation required for claiming tax exemptions or reduced withholding tax on the final dividend.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).