Max Healthcare Institute Ltd announced a final dividend of Rs 2 per share for FY26. Shareholders must submit new tax forms by July 10, 2026, to avoid higher TDS.

Max Healthcare Proposes Rs 2 Dividend, Cites New Tax Form Rules

Max Healthcare Institute Ltd's board has recommended a final dividend of Rs 2.00 per equity share for the fiscal year ending March 31, 2026. The company also issued a crucial reminder about tax compliance under the new Income-tax Act, 2025.

Dividend Announcement

The company's directors have proposed a final dividend of Rs 2 per share, equivalent to 20% of the face value, for FY26. This payout is contingent on shareholder approval at the upcoming 25th Annual General Meeting (AGM), scheduled for July 30, 2026. The record date for determining eligibility for this dividend is July 3, 2026.

Critical Tax Update

Significantly, Max Healthcare highlighted a change in tax requirements. The new Income-tax Act, 2025, and its associated Income-tax Rules, 2026, mean that old tax exemption forms, such as 15G and 15H, will no longer be valid. Investors seeking to claim tax exemptions on their dividend income must now use the newly introduced Form 121.

Why This Matters to Investors

For shareholders, the Rs 2 dividend is tied to the July 3, 2026, record date. Equally important is the tax compliance directive. Failing to submit the correct new forms by the July 10, 2026, deadline could result in a higher rate of Tax Deducted at Source (TDS) being applied to their dividend payments.

Regulatory Shift

This announcement follows Max Healthcare's financial results for the fiscal year ended March 31, 2026. The mandatory use of new tax forms reflects a broader regulatory change impacting how shareholders declare their tax status for dividend income.

Action Required for Tax Exemption

Investors aiming to receive dividends without TDS deduction must complete and submit Form 121. All necessary tax declarations and documentation must be processed through the RTA portal, identified as web.in.mpms.mufg.com, no later than July 10, 2026. This process marks a departure from previous compliance procedures.

Potential Shareholder Risk

The main risk for shareholders lies in the potential for increased TDS deductions if they do not adhere to the new tax form requirements and the July 10, 2026, submission deadline. It is vital that all documentation is correctly submitted via the RTA portal to ensure timely processing.

Broader Industry Context

While dividend policies vary among healthcare companies, many listed entities are facing similar shifts in tax compliance. The transition to new tax forms is part of a wider regulatory evolution affecting numerous companies and their investors.

Key Dates to Note

• Dividend Payout: Rs 2.00 per equity share announced for FY26.
• Dividend Record Date: July 3, 2026.
• Tax Document Deadline: July 10, 2026.
• AGM Date: July 30, 2026.

Next Steps for Shareholders

Investors are advised to stay informed by monitoring updates from Max Healthcare and its Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited. Following guidance on Form 121 and the RTA portal is recommended. Shareholders should also verify that their PAN and other personal details are current to prevent any processing complications.