Shareholder Services - Dividend

Table 1: Resident Shareholders

Table 2: Non-resident Shareholders

1. Copy of PAN Card, if any, allotted by the Indian authorities
2. Self-attested copy of Tax Residency Certificate valid as on the Record Date, obtained from the tax authorities of the Country of which the Shareholder is resident
3. Self-declaration in Form 10F (format attached herewith as Annexure - 9)
4. Self-declaration confirming not having a Permanent Establishment in India and eligibility to Tax Treaty benefit (format attached herewith as Annexure - 10)
5. Self-declaration regarding 'Principle Purpose Test' (if any) as applicable to respective Treaty (format attached herewith as Annexure - 10)
6. Self-declaration as regards beneficial ownership (format attached herewith as Annexure -10)

Notes:

1. In due compliance of the applicable provisions of the Act, the Company will be issuing certificate for tax deducted at source in Form 16A. The credit for tax deducted at source can also be verified by the Shareholder by verifying Form 26AS, after the statement of tax deducted at source is furnished by the Company and thereafter Annual Information Statement (Form 26AS) is updated.
2. In case dividend income under the provisions of the Act is chargeable to tax in hands of any other person other than the Registered Shareholder, then, a declaration to that effect is required to be submitted in terms of section 199 of the Act read with Rule 37BA of the Income Tax Rules, 1962 (format attached herewith as Annexure - 2). On such submission, the Company will deduct tax in the name of such person, which would be due compliance of law on the part of the Company.
3. The Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.
4. In case of any further dividend which is paid in the FY 2022-23 and considering the amount of dividend payments made earlier, if the aggregate dividend pay-out exceeds ₹ 5,000/-, then, from the subsequent payment of dividend, the tax on the current as well as on earlier amount of dividend will be deducted and accordingly, the balance amount of dividend will be paid to the concerned Individual Shareholder.
5. The Company, in compliance with the provisions of the Act, will allot unique identification number and the declarations will be furnished along with the statement of deduction of tax to the income tax authority (Form 15H/15G attached herewith as Annexure - 3 & 4).
6. Insurance companies: The Life Insurance Corporation of India, The General Insurance Corporation of India, The National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited, The United India Insurance Company Limited and any other insurer, as per section 2(28BB) of the Act. In case of any other insurer, self-attested copy of registration is to be furnished. If shares are not owned but have full beneficial interest, then, a declaration to that effect (format attached herewith as Annexure - 5).
7. In terms of section 139AA of the Act read with rule 114AAA, Aadhaar number is required to be linked with PAN by March 31, 2023. In case of failure of linking Aadhaar number with PAN within the prescribed timeline, PAN shall be considered inoperative and, in such scenario, tax shall be deducted at higher rate of 20%. Therefore, Shareholders are advised to link Aadhaar number with PAN if not done.
8. TDS to be deducted at higher rate in case of non-filers of Return of Income as per section 206AB of the Act which requires the Company to deduct tax at higher of the following rates in case of a 'specified person':.
   1. At twice the rate specified in the relevant provision of the Act; or
   2. At twice the rates or rates in force; or
   3. At the rate of 5%; or
   4. At the rate of 20%, if section 206AA is applicable
   The term 'specified person' means a person who:
   • has not filed return of income for the assessment year relevant to the previous year immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and
   • is subjected to tax deduction/collection at source in aggregate amounting to ₹ 50,000/- or more in the said previous year.
    
   A non-resident who does not have a permanent establishment is excluded from the scope of a specified person. Accordingly, non-resident shareholders are requested to provide declaration in format attached herewith as Annexure 10 attached herewith if they do not have permanent establishment and hence should not be considered as specified person.
    
   The Income Tax Department has through the reporting portal utility, made available the list of 'specified person' for the purpose of section 206AB which shall be obtained at the time of deduction of TDS and accordingly, for those Shareholders who are classified as a specified person under section 206AB, TDS on the dividend amount will be deducted at higher rate of 20%.
    
9. The provisions of the tax treaty rate shall be applied even if tax is deductible under section 196D. Therefore, under both section i.e. section 195/196D, the treaty provisions can be applied, subject to submissions of documents as mentioned above. However, the Company is not obligated to apply the Tax Treaty rates at the time of tax deduction/withholding on dividend amounts, if the completeness of documents submitted by the non-resident Shareholder is not to the satisfaction of the Company, including not in accordance with the provisions of the Act. The Company, in compliance of section 195 of the Act, will furnish information relating to the payment of dividend and deduction of tax at source thereon in Form 15CA by the Company and 15CB by a Chartered Accountant, as applicable.
10. In case tax on dividend is deducted at a higher rate in the absence of receipt of the aforementioned details / documents, the concerned Shareholder would still have the option of claiming refund of the excess tax deducted at the time of filing the income tax return. No claim shall lie against the Company for such taxes deducted.
11. The above is only to facilitate the Shareholder so that appropriate TDS is deducted on the dividend amount in accordance with the applicable provisions of the Act.

1. In terms of section 139A of the Act, it is mandatory to quote PAN if tax is deductible on the dividend amount at source under section 194 of the Act. Such non-quoting shall attract penalty of ₹ 10,000/- under section 272B of the Act.
2. SEBI has mandated the submission of PAN by every participant in the securities market

1. Click Here to download Circular No. 18/2017 dated May 29, 2017
2. Click Here to download beneficial ownership declaration (Rule 37BA(2))
3. Click Here to download - Form 15H
4. Click Here to download - Form 15G
5. Click Here to download - Declaration from insurance companies
6. Click Here to download - Declaration from Corporation established by or under a Central Act
7. Click Here to download - Declaration from Mutual Funds
8. Click Here to download - Declaration from Alternative Investment Fund
9. Click Here to download - Form 10F
10. Click Here to download - Declaration from Non-resident

• scanned copy of duly filled and signed request letter (download ECS Mandate) which shall contain Member`s Name, Folio Number, Address registered with Company, Bank Details (Bank name, Branch, Address, Account No., Account Type, MICR No., IFSC Code)
• scanned copy of self-attested PAN card
• scanned copy of self-attested address proof (such as Driving License, Bank Statement, Election Card, Passport, AADHAR Card) in support of address registered with Company.
• scanned copy of self-attested cancelled cheque bearing name of member or first holder in case shares are in joint name. In case the cancelled cheque leaf does not bear your name, please attach a self-attested copy of your bank pass-book statement page which bears your name.