Max Healthcare Institute has been penalised ₹11.33 lakh by the Income Tax Department for transactions with an employee and a vendor that were adjusted through journal entries. The Assessment Unit determined that these transactions, adjusted against past debit or credit entries in the books, should be considered as loans or deposits, leading to the imposition of the penalty. The company received the order on June 26, 2026, at 10.23 am.

The management stated that apart from the monetary penalty, there is no other impact on the financial, operational, or other activities of the company. The company is currently in the process of filing an appeal against the order. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Order

Max Healthcare Institute Ltd has fixed Friday, July 3, 2026, as the record date to determine members eligible for a final dividend of Rs 2 per equity share. The dividend, amounting to 20% of the face value of Rs 10 each, was recommended by the board on May 21, 2026, and is subject to approval by shareholders at the Twenty-Fifth Annual General Meeting scheduled for Thursday, July 30, 2026. The company will pay the dividend to members holding shares in dematerialized or physical form as of the record date.

Tax Deduction at Source

In compliance with the Income-tax Act, 2025, the dividend is taxable in the hands of shareholders for Tax Year 2026-27. The company will deduct tax at source (TDS) at applicable rates, which vary based on the residential status of the member and the documents submitted. For resident members, no tax is deducted if the total dividend for the tax year does not exceed Rs 10,000, provided a valid Permanent Account Number (PAN) is available. A 10% TDS applies where a valid PAN is updated with the depository participant or registrar, while the rate increases to 20% for cases involving invalid or inoperative PANs.

Documentation Requirements

Members can submit specific declarations, such as Form 121 or certificates under section 395 of the IT Act, to claim lower or nil deduction. Non-resident members have the option to be governed by the provisions of the Double Taxation Avoidance Agreement (Tax Treaty) if beneficial. The standard TDS rate for non-residents is 20% plus surcharge and cess, or the Tax Treaty rate, whichever is lower. Specific categories, such as Category III Alternative Investment Funds located in International Financial Services Centre, are subject to a 10% rate, while Sovereign Wealth funds and Pension funds notified under Schedule V of the IT Act are eligible for NIL TDS.

To facilitate appropriate tax deduction, the company requires members to submit necessary forms and documents, including PAN copies and self-declarations, to the registrar, MUFG Intime India Private Limited, by Friday, July 10, 2026. The company stated that any communication received after this date would not be considered for the payment of the final dividend. Members holding shares under multiple accounts with different residential statuses may be subject to the higher applicable tax rate on their entire shareholding.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE027H01010/17479d2e61724ef1.pdf