Mahindra & Mahindra Limited and Manulife Holdings (Bermuda) Limited have incorporated their joint venture entity, Mahindra Manulife Insurance Limited (MMIL), to enter the life insurance sector. The company received the Certificate of Incorporation from the Ministry of Corporate Affairs on May 29, 2026, at 5.10 p.m. This incorporation follows the necessary no objection certificate from the Insurance Regulatory and Development Authority of India (IRDAI) and marks the execution of the partnership agreement announced on November 12, 2025.

The joint venture is structured as a 50:50 partnership between mahindra & mahindra and Manulife Holdings (Bermuda) Limited. MMIL has been incorporated with an authorized and paid-up capital of ₹1 crore, divided into 10,00,000 equity shares of ₹10 each. Both partners have subscribed to 5,00,000 equity shares each, aggregating to ₹50 lakh per entity, resulting in equal shareholding and control.

MMIL will focus on the life insurance business, including the provision of administrative services as defined under the Insurance Act, 1938. The venture aims to leverage Mahindra's extensive distribution reach in India and Manulife's global expertise in product innovation and underwriting. The company intends to address India's protection gap by offering long-term savings and protection products, with a specific focus on rural and semi-urban markets.

The registered office of the newly incorporated entity is located in Mumbai, Maharashtra. The consideration for the subscription of shares was made in cash. The integration of Mahindra's local presence with Manulife's digital and AI-native capabilities is intended to establish MMIL as a technology-driven insurer aligned with the vision of "Insurance for All."

Joint Venture Structure

Mahindra & Mahindra Limited has recommended a dividend of Rs 33 per share for the financial year ended March 31, 2026. The payout, amounting to 660% of the face value of Rs 5 each, is subject to shareholder approval at the 80th Annual General Meeting scheduled for July 30, 2026. The company has communicated the applicable Tax Deducted at Source (TDS) provisions to shareholders, detailing the documentation required to claim exemptions or lower withholding rates.

The Board of Directors approved the dividend recommendation at its meeting held on May 5, 2026. The dividend will be paid after July 30, 2026, contingent upon approval by the members. In accordance with the Income Tax Act, 2025, dividends are taxable in the hands of shareholders, and the company is required to deduct TDS at the time of payment. The Register of Members will close from July 4, 2026, to July 30, 2026, for the purpose of dividend payment and the AGM.

TDS Provisions for Resident Shareholders

For resident shareholders with a valid Permanent Account Number (PAN), TDS will be deducted at 10% on the dividend amount. If the PAN is invalid, not registered, or not linked with Aadhaar, the TDS rate increases to 20%. Resident individuals are exempt from TDS if the total dividend received during the Tax Year 2026-27 does not exceed Rs 10,000 or if they submit valid exemption forms such as Form 121.

Resident non-individual entities, including insurance companies, mutual funds, and Alternative Investment Funds (AIFs), can claim exemption by submitting specific self-declarations and registration certificates. Government shareholders are not subject to TDS. Shareholders may also provide a certificate under Section 197 or 395(1) of the Income-tax Act for lower or nil withholding.

TDS Provisions for Non-Resident Shareholders

Non-resident shareholders are subject to a withholding tax rate of 20%, plus applicable surcharge and cess, under domestic tax laws. For tax residents of Notified Jurisdictional Areas, the rate is 30%. Shareholders have the option to be governed by the Double Tax Avoidance Agreement (DTAA) if more beneficial, provided they submit a Tax Residency Certificate (TRC), PAN, and electronically filed Form 41 by the stipulated deadlines.

The company has clarified that it is not obligated to apply beneficial DTAA rates at the time of tax deduction if the documentation is incomplete or unsatisfactory. Non-resident shareholders, including Foreign Portfolio Investors (FPIs), must submit a self-declaration confirming treaty eligibility and beneficial ownership.

Key Deadlines and Compliance Requirements

Shareholders must ensure their PAN, residential status, and category details are updated in their demat accounts. The records available as of July 3, 2026, will determine entitlement and tax compliance. Documents for tax exemption or lower TDS must be submitted by June 26, 2026. Failure to provide valid documentation will result in TDS deduction at the applicable higher rate, and the company will not entertain requests for revision of the TDS return post-payment.

Shareholders holding shares in physical mode must contact the company's Registrar and Share Transfer Agent, KFin Technologies Limited, to update details. The company emphasized that any income tax demand arising from misrepresentation or omission of information by shareholders will be their responsibility.