GIC Re Dividend ₹13.25: New TDS Rules Explained
By Business Desk
GIC Re recommends a ₹13.25 dividend for FY26. Understand the impact of new TDS rules effective April 1, 2026, on your dividend income.
General Insurance Corporation of India (GIC Re) has recommended a final dividend of ₹13.25 per equity share for the financial year ending March 31, 2026. This announcement also brings new Tax Deduction at Source (TDS) rules that will affect you.
Here are the key details about your upcoming GIC Re dividend:
- Dividend amount: ₹13.25 per equity share
- Board approval date: May 26, 2026
- Record date for eligibility: September 4, 2026
- Expected payment: Within 30 days of the 54th Annual General Meeting
While the Board of Directors approved this recommendation on May 26, 2026, it still needs shareholder approval at the upcoming 54th Annual General Meeting. Once approved, the record date for determining your eligibility to receive the dividend is September 4, 2026.
Understanding New TDS Rules on Your Dividend
Starting April 1, 2026, new Tax Deduction at Source (TDS) provisions under the Income Tax Act, 2025, will apply to your dividend income. This means how your dividend is taxed at source is changing, and you’ll want to be prepared.
For resident shareholders, here’s what you can expect regarding TDS:
- A 10% TDS will apply if your dividend income exceeds ₹10,000.
- If your Permanent Account Number (PAN) is not linked to Aadhaar, the TDS rate increases to 20%.
- Certain entities are exempt from these TDS provisions.
This shift places the compliance burden more directly on you as a shareholder. Ensuring your PAN is correctly linked to Aadhaar and that any applicable exemptions are properly claimed will be crucial to avoid higher tax deductions.
What Non-Resident Shareholders Need to Do
If you are a non-resident shareholder, pay close attention to these specific requirements:
- A default withholding tax of 20% will be applied to your dividend.
- To claim benefits under a Double Taxation Avoidance Agreement (DTAA), you must submit all required documents by September 7, 2026.
In essence, understanding these new TDS rules and acting proactively by submitting necessary documents is key. This will help you manage your tax liabilities effectively and ensure you receive your dividend without unexpected deductions.