LIC asks shareholders to update these details to avoid higher TDS on dividends: Check deadline

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Jul 09, 2024 02:27 PM IST

Dividends will be paid to members who own equity shares of the Corporation, either in real or electronic form.

The Life Insurance Corporation of India (LIC) advised shareholders to update their Permanent Account Numbers (PANs). As per LIC advertisement dated July 5, 2024, “Members may note that the Board of Directors of the Corporation in its meeting held on May 27, 2024, has recommended a final dividend of 6/- per equity share of face value of 10/- each for the Financial Year 2023-24, subject to declaration of the same by the members of the Corporation at the 3rd Annual General Meeting scheduled to be held on Thursday, August 22, 2024.”

An exterior view of Life Insurance Corporation of India (LIC) eastern zonal head office building in Kolkata.(Reuters)

LIC: Who are eligible for dividends?

Dividends will be paid to members who own equity shares of the Corporation, either in real or electronic form. This will be done within 30 days of the dividend declaration date.

What about TDS on dividends in case of LIC?

The Income Tax Act, 1961 mandates that LIC deducts tax at source on dividends paid to members. For this, LIC members are requested to complete and/or update their residential status, PAN and other details as per the IT Act. LIC said, “Members who have not updated their bank account details are requested to update their Bank Mandate with the respective DPs on or before 05:00 p.m. (IST), Friday, July 19, 2024 to receive dividend directly into their bank account through any permissible mode.”

In case there are no bank details, LIC shall pay the dividend to such Members through any other permissible mode, as per its website.

Additionally, the website noted, “Further as per Section 139AA of the Act, every person who has been allotted a PAN and who is eligible to obtain Aadhar, shall be required to link the PAN with Aadhar. In case of failure to comply to this, the PAN allotted shall be deemed to be invalid/ inoperative and he shall be liable to all consequences under the Act and tax shall be deducted at higher rates as prescribed under the Act. The Corporation will be relying on the information verified by the utility available on the Income Tax website.”

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