GIC Recommends Dividend of Rs 13.25 Per Share; Sets Tax Deduction at Source (TDS) Guidelines for FY 2025-26
General Insurance Corporation of India (GIC) has recommended a dividend payment of Rs 13.25 per equity share for the financial year ended March 31, 2026. The dividend is subject to approval by shareholders at the forthcoming 54th Annual General Meeting (AGM). In light of changes in the Income Tax Act, 2025, the Corporation has outlined detailed guidelines regarding the deduction of tax at source (TDS) on the dividend payout.The Board of Directors met and recommended the dividend payment of Rs 13.25 per equity share, which carries a nominal value of Rs 5/- each. The recommendation was made during the Board meeting held on May 26, 2026.
As mandated by the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders with effect from April 1, 2026. Consequently, GIC must deduct TDS at the time of payment to the shareholders according to the prescribed rates and conditions.
Tax Deduction at Source (TDS) Details
GIC has established different tax deduction requirements for resident and non-resident shareholders under the provisions of the Income Tax Act.For resident shareholders, TDS will be deducted at 10% under Section 393(1) Table Sl. No. 7 of the Act, unless specific exemptions apply. Notably, individuals are exempt from TDS if the aggregate dividend distributed by GIC during the Tax Year (TY) 2026-27 does not exceed Rs 10,000.
Non-resident shareholders face a general TDS rate of 20% plus applicable surcharge and cess under Section 393(2). Non-residents also have the option to benefit from Double Tax Avoidance Agreements (DTAA) with India if it is more beneficial to them, provided they submit specific documentation, including a self-attested copy of the Tax Residency Certificate (TRC) and E-filed Form 41.
Key dividend payment details are summarized below:
| Category | Recommended Dividend per Share | TDS Rate (General) | Key Condition / Exemption |
|---|---|---|---|
| Resident Shareholders | Rs 13.25 | 10% | Individuals with aggregate dividend up to Rs 10,000 are exempt. |
| Non-resident Shareholders | N/A | 20% + Cess / Surcharge | Eligible for DTAA benefits upon submission of required documents. |
The record date set for determining eligibility for the final dividend is Friday, September 4, 2026. The dividends will be paid to eligible shareholders within a period of 30 days from the date of the ensuing AGM and will be disbursed electronically through various online modes or other permissible methods.
GICRE Stock Price Movement
General Insurance Corporation of India saw its stock edge higher on Friday, finishing the session at ₹352.10 after gaining 1.18%. The performance followed a day where the share price dipped to ₹347.05, with trading volume recording 705,812 shares as pressure persists near historical lows.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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