GIC Re FY26 dividend ₹13.25: record date, TDS

What GIC Re announced

General Insurance Corporation of India (GIC Re) has recommended a final dividend of ₹13.25 per equity share for the financial year ended March 31, 2026. The equity shares carry a nominal (face) value of ₹5 each. The proposed dividend is subject to shareholder approval at the company’s upcoming 54th annual general meeting (AGM).

The recommendation was made alongside the board’s approval of the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. In stock exchange filings, the company also set a record date to determine shareholder eligibility for the payout. GIC Re further issued a detailed communication on how tax will be deducted at source (TDS) on dividends under the Income Tax Act, 2025.

Dividend amount and what it represents

The final dividend proposed by the board is ₹13.25 per share. In the exchange filing, the company stated this corresponds to 265% on the face value of ₹5 per share. The dividend, if approved at the AGM, will be paid within 30 days from the date of declaration at the AGM.

This payout is described as a final dividend for FY2025-26. The company’s disclosures also include dividend yield figures from different data snapshots, including a quarterly context and a “current dividend yield” number. These yield figures can differ depending on the reference price and the time period used.

Key dates: record date and document submission deadline

GIC Re has fixed Friday, September 4, 2026 as the record date for determining the eligible shareholders for the final dividend. In practical terms, shareholders whose holdings are on the register as of the record date are considered for dividend eligibility, subject to market settlement rules.

Alongside the dividend timeline, the company set a separate compliance timeline for tax documentation. Shareholders are required to submit requisite documents by 5:00 pm on Monday, September 7, 2026. The submission is to be made through the Registrar and Transfer Agent (RTA) portal or via email, as outlined in the shareholder communication.

Taxability of dividends from April 1, 2026

GIC Re stated that, pursuant to the Income Tax Act, 2025, dividend income will be taxable in the hands of shareholders with effect from April 1, 2026. As a result, the corporation will deduct tax at source (TDS) at the prescribed rates at the time of dividend payment.

The company’s note emphasises that the TDS rate depends on the shareholder category and the completeness of documentation submitted. This includes the availability of PAN and, for some cases, whether PAN is linked with Aadhaar.

TDS for resident individuals: threshold and rates

For resident individual shareholders, GIC Re stated that TDS will not apply if the aggregate dividend distributed during the tax year does not exceed ₹10,000. For dividend amounts that exceed this threshold, TDS will be deducted at 10% under Section 393(1) Table Sl. No. 7 of the Act, provided PAN is linked with Aadhaar.

If PAN is not provided or Aadhaar is not linked, the company stated the TDS rate rises to 20% as per Section 397(2). This higher rate is presented as a default consequence of missing or non-compliant PAN-Aadhaar linkage.

The communication also notes that the ₹10,000 threshold is a “new TDS threshold for FY 2025-26” and that the earlier threshold mentioned was ₹5,000 per financial year.

Exemptions for select resident entities

GIC Re’s communication states that exemptions are available for specific entities such as insurance companies, mutual funds, and Alternative Investment Funds (AIFs). These exemptions are conditional on submission of self-declarations and registration certificates, as applicable.

For such entities, the practical implication is that the TDS outcome depends on whether the shareholder submits the required declarations and proofs within the stated deadline. The company’s note frames documentation as the key determinant for applying the correct withholding tax rate.

TDS for non-residents, FIIs and FPIs, and DTAA option

For non-resident shareholders, including FIIs and FPIs, GIC Re stated a default withholding tax rate of 20% plus applicable surcharge and cess. However, the company also stated that such shareholders may avail benefits under the Double Tax Avoidance Agreement (DTAA) between India and the shareholder’s country of residence, if the DTAA rate is more favourable.

To claim DTAA benefits, the company listed the documents required from non-residents: a self-attested PAN (if applicable), a Tax Residency Certificate, e-filed Form 41, and declarations regarding beneficial ownership and permanent establishment status in India. The company’s communication positions these documents as necessary to apply a DTAA rate rather than the default withholding rate.

Dividend yields cited and historical dividend points

The material provided includes multiple dividend yield references for GIC Re. It mentions “Dividend Yield 2.38”, and separately states that for the quarter ending March 2026, the company declared a dividend of ₹13.25 per share on 26 May 2026, “translating a dividend yield of 3.76%”. It also states, “The current dividend yield of General Insurance Corporation of India (GICRE) is 2.81%,” and adds an illustration that an investment of ₹1,000 is expected to generate dividend of ₹28.11 every year.

The dividend history snippet also lists cash dividends with ex-dates and amounts: Sep 4, 2026 (Final ₹13.25), Sep 4, 2025 (Final ₹10.00), Sep 11, 2024 (Final ₹10.00), and an “Interim” dividend of ₹2.25 (date not specified in the provided text).

Summary table: dividend, dates, and TDS rules (as disclosed)

Dividend snapshot table: ex-dates and yields mentioned

Market impact and what shareholders should track

For shareholders, the two immediate action points in the disclosure are the September 4, 2026 record date and the September 7, 2026 documentation deadline for determining the applicable TDS rate. The company’s communication makes it clear that tax outcomes depend on shareholder category and document completeness, particularly for PAN availability and PAN-Aadhaar linkage in resident cases.

The other practical consideration is timing. The company stated the dividend would be paid within 30 days from the date of declaration at the AGM, subject to shareholder approval. Investors tracking expected cash flows typically watch the AGM date and the subsequent payment window, while also ensuring their tax documentation status is aligned with the company’s requirements.

Conclusion

GIC Re has recommended a FY26 final dividend of ₹13.25 per share, set September 4, 2026 as the record date, and outlined TDS rules under the Income Tax Act, 2025 effective from April 1, 2026. Shareholders who need a lower or correct withholding rate must submit the required documents by 5:00 pm on September 7, 2026 through the RTA channels specified by the company. The dividend will be payable after shareholder approval at the 54th AGM and, as stated by the company, would be paid within 30 days of declaration at the AGM.