LIC Shareholders urged to update PAN to avoid Reduced Dividend

New Delhi:

Life Insurance Corporation of India (LIC) has issued an urgent notice for its shareholders.

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To ensure you receive the full dividend, you must update your Permanent Account Number (PAN) immediately.

On July 5, 2024, LIC advised through an advertisement that shareholders must update their PAN to avoid a reduction in their dividend.

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Dividend Details and Important Dates

The Board of Directors of LIC recommended a final dividend of ₹6 on each equity share with a face value of ₹10 during their meeting on May 27, 2024.

This will be declared at the third Annual General Meeting on August 22, 2024, for the financial year 2023-24.

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The dividend will be paid to shareholders holding LIC equity shares in either physical or electronic form as of the record date, July 19, 2024.

Eligible members will receive the dividend within 30 days of the declaration, no later than September 20, 2024.

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Updating Bank Account Information

LIC has urged shareholders to ensure their bank account details are updated in time. Shareholders with updated bank account details with their depository participants will receive the payment online and through other modes.

The dividend will be transferred based on the updated bank details by July 19, 2024.

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Tax Deduction on Dividend Income

According to the Income Tax Act of 1961, LIC is required to deduct Tax Deducted at Source (TDS) on dividends.

Dividend income is taxable, and LIC advises members to update their residential status, PAN, and category as per the IT Act with their depository participants to comply with TDS requirements.

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Tax Rules for Dividends

No tax will be deducted on dividends paid to resident members (individuals) if the total dividend does not exceed ₹5,000 during the financial year 2024-25.

If the PAN is not registered or is invalid, TDS will be deducted at the higher of the prescribed rates or at 20%.

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Members can view the credit of TDS in Form 26AS, which is downloadable from their e-filing account on the Income Tax Department’s website.

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