Deduction of Tax at Source from the Final Dividend for the Financial Year Ended 31st March 2024

The Board of Directors of the Company ('the Board') at the Meeting held on 30th April 2024 as you may be aware have recommended Final Dividend of ₹ 5.00 per Equity Share of ₹ 10/- each for the financial year ended 31st March 2024.

The Final Dividend if declared at the 43rd Annual General Meeting of the Company convened for 29th August 2024 will be paid between 30th August 2024 and 5th September 2024.

Pursuant to the Income-tax Act 1961, dividend income, as you are aware, is taxable in the hands of the shareholders, and the Company will be deducting tax at source (TDS) as applicable from the dividend amount payable to you.

The tax rate would vary depending on the residential status category of the shareholder and is subject to provision of requisite declarations/documents to the Company.

This communication is being sent as a measure of investor servicing to apprise you on the applicable provisions of TDS on dividend and other related matters.

Resident Shareholders

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 Registrar and Share Transfer Agent (‘RTA’) (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:

have not furnished valid PAN; or
have not linked PAN with their Aadhaar where applicable; or
are considered to be 'Specified Person' under Section 206AB of the Income Tax Act 1961.

Shareholders who are yet to furnish their PAN to their respective Depository Participants / RTA 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 by the Company during a financial year does not exceed ₹5000/- or
- their income is below the taxable limit and declaration is received by the Company from the shareholders in Form 15G (for individuals up to age of 60 years) or in Form 15H (for individuals above the age of 60 years).

Click here to download Form 15G

Click here to download Form 15H

(B) Insurance Companies, Mutual Funds, and domestic Alternative Investment Funds where documents complete in all respects are received by the Company from them. Click here to view / download the documents required.

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 to Foreign Portfolio Investors, Foreign Institutional Investors, and other non-resident shareholders.

The Tax Treaty rate shall be applied for withholding the tax on submission of the following documents to the company:

Copy of Indian Tax Identification number (PAN) if available.
Self-attested copy of Tax Residency Certificate (TRC) (for FY 2024-25 or calendar year 2024) valid as on the AGM date obtained from the tax authorities of the country of which the shareholder is tax resident.
Self-declaration in Form 10F if PAN is not available. In case where PAN is available Form 10F has to be executed in electronic mode from Income tax portal. Click here to download Form 10F
Self-declaration confirming not having a Permanent Establishment in India and eligibility to Tax Treaty benefit (for FY 2024-25 or calendar year 2024)

For availing the benefit of Tax Treaty Rate, the shareholders will be required to submit necessary documents to the Company complete in all respects. Click here to view / download the documents required.

In case of shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore DTAA.

General Instructions / Information

Submission of Tax Exemption Forms/documents for availing the benefit of Tax Treaty Rate as applicable by 9th August 2024.

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 should be filled up and the completed signed Forms/documents are required to be sent to Investor_TH@ith.co.in / helpdeskdelhi@mcsregistrars.com within the stipulated time period.

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 9th August 2024 and/or incomplete documents will not be considered.

In the event the benefit of lower tax on dividend cannot be provided by the Company due to non-receipt / late receipt of the Tax Exemption Forms or the Forms & 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.

In the event the dividend income as on the Record Date i.e. 9th August 2024 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 9th August 2024 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 9th August 2024.

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 do get in touch with the Company at Investor_TH@ith.co.in

This communication should not be treated as a tax advice from the Company.