Deduction of tax at source from the Interim Dividend for the financial year ending on 31st March, 2024
The Board of Directors of the Company ('the Board') at the Meeting held on 29th January, 2024 have declared Interim Dividend @ Rs. 6.25 per Ordinary Share of Re. 1/- each for the financial year ending on 31st March, 2024; the Interim Dividend will be paid between 26th February, 2024 and 28th February, 2024.
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:
Category of Shareholders | Documents required |
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Insurance Companies |
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Mutual Funds |
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Alternative Investment Funds (AIF) |
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Other non-individual resident shareholders |
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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 15th February, 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 sent to ISC through e-mail at isc@itc.in or by post / courier at 37 Jawaharlal Nehru Road, Kolkata 700 071.
Shareholders may also login at https://eform.itcportal.com (ITC Eform Portal) on and from 10th February, 2024 to submit the Tax Exemption Forms or the Forms & Documents. 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 15th February, 2024 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 Final Dividend 2022-23 paid on 14th August, 2023 will not be considered relevant for this Interim 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 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.
(4) In the event the dividend income as on the Record Date, i.e. 8th February, 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 15th February, 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 15th February, 2024.
(5) The TDS Certificate, if applicable, will be e-mailed to the registered e-mail address of the Shareholders 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 ISC at the following telephone nos. or e-mail ID:
Telephone nos. : 1800-345-8152 (toll free), 033-2288 6426 / 0034
E-mail : isc@itc.in