Deduction of tax at source from the Final Dividend for the financial year ended 31st March, 2022
The Board of Directors of the Company ('the Board') at the Meeting held on 18th May, 2022, as you are aware, have recommended Final Dividend @ Rs. 6.25 per Ordinary Share of Re. 1/- each for the financial year ended 31st March, 2022; the said dividend is in addition to the Interim Dividend of Rs. 5.25 per share declared by the Board on 3rd February, 2022 and paid on 4th March, 2022.
The Final Dividend, if declared at the 111th Annual General Meeting of the Company convened for 20th July, 2022, will be paid between 22nd July, 2022 and 26th July, 2022.
Pursuant to the Income-tax Act, 1961, dividend income is taxable in the hands of the shareholders, and the Company will be deducting tax at source (TDS), as applicable, from the aforesaid dividend.
TDS will be deducted @ 10% on the amount of dividend payable where a valid Permanent Account Number (PAN) has been furnished by the 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).
TDS will be deducted @ 20% i.e. at twice the applicable rate on the amount of dividend payable where the resident shareholders:
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:-Click here to download Form 15G
(B) Insurance Companies (viz. LIC, GIC etc.), Mutual Funds and domestic Alternative Investment Funds, where the following documents complete in all respects are received by the Company from them.
|Category of Shareholders||Documents required|
|Alternative Investment Funds (AIF)||
|Other non-individual 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 to Foreign Portfolio Investors, Foreign Institutional Investors and other non-resident shareholders.
For availing the benefit of Tax Treaty Rate, the shareholders will be required to submit the following documents to the Company complete in all respects.
(1) Submission of Tax Exemption Forms / documents for availing the benefit of Tax Treaty Rate, as applicable, by 5th July, 2022
The Tax Exemption Forms from resident shareholders and Forms & Documents from non-resident shareholders for availing the benefit of Tax Treaty Rate, as stated above, may be sent to ISC on or before 5th July, 2022 through the ITC Eform Portal at https://eform.itcportal.com. The Eform Portal is also accessible from the Company's corporate website www.itcportal.com under the section 'Investor Relations'.
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 5th July, 2022 and / or incomplete documents will not be considered.
(2) The Tax Exemption Forms or the Forms & Documents for availing the benefit of Tax Treaty Rate submitted to the Company earlier for the Interim Dividend 2021-22 paid on 4th March, 2022 will not be considered relevant for this Final Dividend; Fresh Forms and Documents will be required to be submitted for availing such benefits.
(3) 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.
(4) In the event the dividend income as on the Record Date, i.e. 28th May, 2022, is assessable to tax in the hands of a person other than the registered shareholder (viz., the shares are held by a clearing member, broker etc. on behalf of the actual beneficial owner), such registered shareholder (i.e. the said clearing member, broker etc.) is required to furnish to the Company on or before 5th July, 2022, a declaration containing the name, address, residential status and PAN of the actual beneficial owner to whom TDS credit is to be given, and reasons for giving credit to such person. No request in this regard will be considered by the Company after 5th July, 2022.
(5) The TDS Certificate, if applicable, will be e-mailed to your registered e-mail address in due course of time, post payment of the aforesaid dividend.
Should you have any query or require any assistance in the matter, please write to Mr. T. K. Ghosal, Head of ISC, at e-mail ID firstname.lastname@example.org or you may call ISC at telephone nos. 1800-345-8152 (toll free) or 033-2288 6426 / 0034.