ICICI Bank Recommends Final Dividend of ₹1.2 Per Share for FY 2025-26; Outlines TDS Requirements
ICICI Bank Limited has announced the recommendation of a final dividend for its shareholders, detailing the tax deduction at source (TDS) requirements applicable to both resident and non-resident investors for the financial year ending March 31, 2026.The Board of Directors, during a meeting held on April 18, 2026, recommended the payment of a final dividend amounting to ₹1.2 per equity share. This represents 60% of the face value, which is ₹2 each. The dividend is scheduled for payment to shareholders who meet the criteria as of the record date, set for August 3, 2026, pending approval at the 32nd Annual General Meeting scheduled for August 21, 2026.
Tax Deduction at Source (TDS) for Resident Shareholders
The Bank specified that dividend payments are taxable in the hands of shareholders under the Income-tax Act, 2025. TDS will be deducted based on various criteria, depending on the resident shareholder's status and the documentation provided.For Resident Shareholders:
- A general TDS rate of 10% applies if a valid PAN is provided. If no valid PAN is furnished or if the PAN is not linked with Aadhaar, the TDS rate is applicable at 20%.
- No tax will be deducted on the dividend if the total payable to a resident individual shareholder does not exceed ₹10,000 per year, or if the shareholder provides duly signed Form 121 with valid PAN.
The Bank provided specific nil-rate eligibility criteria for certain corporate and institutional shareholders:
| Particulars | Applicable Rate of TDS | Required Documentation |
|---|---|---|
| Insurance Companies | Nil | Declaration and self-attested registration certificate with IRDAI and PAN card copy. |
| Government, RBI, or Specified Corporations/Mutual Funds | Nil | Declaration that the entity is covered under Section 393(5) of the Act along with relevant documentation and PAN card copy. |
| Category I & II Alternative Investment Funds (AIF) registered with SEBI | Nil | Declaration confirming income exemption under Schedule V, along with SEBI AIF registration certificate and PAN card copy. |
| Exempt Shareholders by CBDT Circular or Notification | Nil | Declaration covering the exemption status in accordance with relevant provisions and supporting documentation. |
| All Resident Shareholders (Other) | Rate determined by lower or nil deduction certificate from the Income Tax department | Self-attested copy of the applicable certificate, noting ICICI Bank Limited's TAN as MUMI16212A. |
TDS Guidelines for Non-Resident Shareholders
Non-resident shareholders face different TDS rates depending on their status:- ADR Depositaries: A TDS rate of 10% applies to the dividend amount.
- FII/FPI (Foreign Institutional Investors): The TDS is applicable at 20% or as per the rate specified in any applicable Double Tax Avoidance Agreement, whichever is lower.
- Other Non-Resident Shareholders: The default TDS is set at 20% or as per a tax treaty, whichever is lower.
Non-resident shareholders seeking to avail benefits under an applicable tax treaty must submit specific documentation, including a self-attested copy of the Tax Residency Certificate (TRC) for tax year 2026-27 and a self-declaration in Form 41.
Key Operational Instructions
The Bank emphasized that all TDS rates are subject to applicable surcharge and cess. Shareholders holding shares must update their details, including tax residential status, PAN, bank account details, postal address, email, mobile number, and nomination with their relevant participants. For physical shareholders, this includes updating KYC and bank account details through the Registrar and Share Transfer Agent.The dividend will be paid only after deducting TDS as determined based on the documents provided by the shareholder. Shareholders were instructed to submit all required documents for tax determination no later than August 3, 2026 (6:00 p.m. IST).
ICICIBANK Stock Price Movement
Today, ICICI Bank Limited shares climbed in the post-market session, settling at ₹1412.70 after gaining 0.91%. The equity saw significant activity, with 12.9 million shares being traded during the closing hours today.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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