Deduction of Tax at Source from Dividend

The Board of Directors of the Company at the Meeting held on 26th June, 2020, have recommended Dividend of Rs. 10.15 per Ordinary Share of Re. 1/- each for the financial year ended 31st March, 2020. The said dividend, if declared at the 109th Annual General Meeting of the Company convened for 4th September, 2020, will be paid to the shareholders entitled thereto on 8th September, 2020.

In terms of the Income-tax Act, 1961 read with the Finance Act, 2020, payment of dividend by the Company, effective 1st April, 2020, is taxable in the hands of the shareholders. The Company will be therefore required to deduct tax at source (TDS), as applicable, from the aforesaid dividend, in the manner following:

 

I. Resident Shareholders

TDS will be deducted @ 7.5% on the amount of dividend payable where a valid Permanent Account Number (PAN) has been furnished by the concerned resident shareholders to their respective Depository Participants (in case shares are held in dematerialised form) or to the Investor Service Centre (ISC) of the Company (in case shares are held in certificate form). In the absence of a valid PAN, TDS will be deducted @ 20%.

Shareholders who are yet to furnish their PAN to their respective Depository Participants / ISC are therefore requested to do so immediately.

No TDS, however, will be deducted from dividend payable to:

(A) Individual Shareholders, if:-

  • the amount of dividend payable does not exceed Rs. 5,000/-, or
  • their income is below the taxable limit and a declaration is received from the concerned shareholders in Form 15G (for persons up to age of 60 years) or in Form 15H (for persons above the age of 60 years).

Click here to download Form 15G

Click here to download Form 15H

(B) INSURANCE COMPANIES (VIZ. LIC, GIC ETC.), MUTUAL FUNDS AND ALTERNATIVE INVESTMENT FUNDS (INCORPORATED IN INDIA) AND OTHER NON-INDIVIDUAL SHAREHOLDERS, UPON RECEIPT OF THE REQUISITE DOCUMENTS FROM THEM, AS LISTED BELOW:

Click here to view / download the documents required to be submitted to the Company

 

II. Non-Resident Shareholders

(A) For Foreign Portfolio Investors and Foreign Institutional Investors:

TDS will be deducted @ 20% (plus applicable surcharge and cess) on the amount of dividend payable.

 

(B) For other non-resident shareholders:

TDS will be deducted @ 20% (plus applicable surcharge and cess) or the Tax Treaty Rate, whichever is lower, on the amount of dividend payable.

For availing the benefit of Tax Treaty Rate, the shareholders will be required to submit requisite documents to the Company, duly completed in all respect, as listed below:

Click here to view / download the documents required to be submitted to the Company

 

Submission of Tax Exemption Forms / documents for availing benefits, as applicable

Click here to submit the duly completed and signed documents viz. Form 15G, Form 15H, TRC, Form 10F etc., as stated above on or before 15th August, 2020.

The consideration of the aforesaid documents, including application of beneficial Tax Treaty Rate, where applicable, will depend on the adequacy and completeness of such documents submitted by the shareholders and review of the same to the satisfaction of the Company. Documents received after 15th August, 2020 and / or incomplete documents will not be considered.

In the event the benefit of lower tax on dividend cannot be provided by the Company in the absence of, or due to late receipt of, the aforesaid documents, shareholders will still have an option to claim appropriate refund, if eligible, at the time of filing their income tax returns. No claim shall lie against the Company for taxes once deducted.