LIC Share Holders Update: There is big news for LIC shareholders. Shareholders of Life Insurance Corporation of India (LIC) should do this work soon, otherwise their dividend may be reduced.
In fact, on July 5, 2024, LIC has advised its shareholders to update PAN through an advertisement. The advertisement said that the Board of Directors of the Corporation in its meeting held on May 27, 2024 has recommended a final dividend of Rs 6 on each equity share of face value of Rs 10.
LIC shareholders – only these people will get dividend
This has been declared by the members of the Corporation in the third Annual General Meeting to be held on Thursday 22nd August 2024 for the financial year 2023-24. As per the record date which is Friday 19th July 2024, the dividend will be paid to the members who hold equity shares of LIC in physical or electronic form. The dividend will be paid to the members eligible for final dividend within 30 days of the declaration date or latest by 20th September 2024. Members who have updated their bank account details with their depository participants can receive the payment online and through other modes.
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Shareholders should update this information
LIC said in the newspaper that members who have not updated their bank account details are requested to update them in time. The dividend will be transferred by July 19. Dividend payment will be made as per the bank details of any member.
TDS is deducted on dividend income
The Income Tax Act 1961 (IT Act) mandates that the Corporation deducts Tax Deducted at Source (TDS) on dividends paid to members. Dividend income of members is taxable. To enable compliance with TDS requirements, LIC members are advised by the company to complete and update their residential status, PAN and category as per the IT Act with their DP.
This is the rule
According to the LIC website, however, no tax will be deducted on dividends paid to resident members (individuals) if the total dividend paid to them during the financial year 2024-25 does not exceed Rs 5,000. Where the PAN is either not registered or invalid. Tax deducted at source will be deducted at the same rate as the higher of the prescribed TDS rates or @ 20%. Members will also be able to view the credit of TDS in Form 26AS, which can be downloaded from their e-filing account https://www.incometax.gov.in/iec/foportal.
