Investor Services
Grievances
Housing Development Finance Corporation Limited ('the Corporation') is committed to providing effective and prompt service to its shareholders. The Corporation has in place, a designated e-mail address i.e. [email protected] for assistance and/or grievance redressal and is closely monitored by the Company Secretary of the Corporation. The escalation matrix for complaints relating to the securities of the Corporation is as provided below:
Ms. Lata Nayak Assistant General Manager- Investor Services
5 th Floor, Ramon House,
H. T. Parekh Marg,
169, Backbay Reclamation,
Churchgate, Mumbai – 400 020.
Ms. Lakshmi Shetty Deputy General Manager - Investor Services
5 th Floor, Ramon House,
H. T. Parekh Marg,
169, Backbay Reclamation,
Churchgate, Mumbai – 400 020.
In the event, the grievance(s) are not resolved within 3 working days of its submission along with all requisite documents or the investor is not satisfied with the resolution provided, he/ she can forward his/her complaint to the Company Secretary.
Mr. Ajay Agarwal Company Secretary
HDFC House, H. T. Parekh Marg,
165-166, Backbay Reclamation, Churchgate,
Mumbai – 400 020.
In case of non-redressal of the complaint to the investor’s satisfaction, within a reasonable time frame, the investor may approach-
Mr. V. Srinivasa Rangan Executive Director
HDFC House, H. T. Parekh Marg,
165-166, Backbay Reclamation, Churchgate,
Mumbai – 400 020.
In case a complaint is still not redressed to the investor's satisfaction, the investor may approach the Securities and Exchange Board of India and file their grievance through “SCORES”, the centralized online system for lodging and tracking complaints.
SCORES facility can be accessed through the weblink http://scores.gov.in.
Filing complaints on SCORES - Easy & quick
a. Register on SCORES portal
b. Mandatory details for filing complaints on SCORES:
i. Name, PAN, Address, Mobile Number, E-mail ID
c. Benefits:
i. Effective communication
ii. Speedy redressal of the grievances
Codes and Policies
Board Committees
HDFC is a professionally managed organization with its Board consisting of eminent persons, professionals who represent various segments including finance, taxation, construction and urban policy & development. The Board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to the various stakeholders.
Mr. Deepak Parekh
Chairman
Mr. U. K. Sinha
Independent Director
Mr. Jalaj Ashwin Dani
Independent Director
Dr. Bhaskar Ghosh
Independent Director
Ms. Ireena Vittal
Independent Director
Mr. Rajesh Narain Gupta
Independent Director
Mr. P. R. Ramesh
Non-Executive Director
Mr. V. Srinivasa Rangan
Executive Director
Ms. Renu Sud Karnad
Managing Director
Mr. Keki M. Mistry
Vice Chairman & Chief Executive Officer
Mr. Jalaj Ashwin Dani
Independent Director (Chairman)
Dr. Bhaskar Ghosh
Independent Director
Ms. Ireena Vittal
Independent Director
Mr. U. K. Sinha
Independent Director(Chairman)
Mr. Deepak S. Parekh
Non-Executive Director
Ms. Ireena Vittal
Independent Director
Mr. Jalaj Ashwin Dani
Independent Director(Chairman)
Mr. V. Srinivasa Rangan
Executive Director
Mr. Rajesh Narain Gupta
Independent Director
Mr. Deepak Parekh
Chairman
Mr. Jalaj Ashwin Dani
Independent Director
Mr. Keki M. Mistry
Vice Chairman & Chief Executive Officer
Ms. Renu Sud Karnad
Managing Director
Mr. V. Srinivasa Rangan
Executive Director
Dr. Bhaskar Ghosh
Independent Director
Mr. Keki M. Mistry
Vice Chairman & Chief Executive Officer
Ms. Renu Sud Karnad
Managing Director
Mr. V. Srinivasa Rangan
Executive Director
Mr. Conrad D'Souza
Member of Executive Management
Ms. Madhumita Ganguli
Member of Executive Management
Mr. Suresh Menon
Member of Executive Management
Listing
The equity shares, non convertible debentures and warrants issued by the Corporation are listed on BSE Limited and the National Stock Exchange of India Limited and tradable on all the recognized stock exchanges. HDFC being entirely a non-promoter owned entity aims to provide detailed information to all investors.
| Date | Corporate Actions |
|---|---|
| 17-Oct-77 | Incorporated as a public limited company |
| 19-Sep-78 | Public Issue of 399,874 equity shares (F.V. Rs. 100) priced at par |
| 30-Oct-81 | Final Dividend for 1980-81 - Rs. 5 per equity share |
| 26-Oct-82 | Final Dividend for 1981-82 - Rs. 7.50 per equity share |
| 25-Oct-83 | Final Dividend for 1982-83 - Rs. 10 per equity share |
| 26-Oct-84 | Final Dividend for 1983-84 - Rs. 12 per equity share |
| 30-Oct-85 | Final Dividend for 1984-85 - Rs. 13 per equity share |
| 15-Oct-86 | Final Dividend for 1985-86 - Rs. 15 per equity share |
| 15-Apr-87 | Rights Issue of 500,000 equity shares (F.V. Rs. 100) at par |
| 6-May-87 | Public Issue of 500,000 equity shares (F.V. Rs. 100) priced at par |
| 27-Oct-87 | Final Dividend for 1986-87 - Rs. 16 per equity share |
| 25-Oct-88 | Final Dividend for 1987-88 - Rs. 17 per equity share |
| 25-Jul-89 | Final Dividend for 1988-89 (on 9 months) - Rs. 14 per equity share |
| 31-Jul-90 | Final Dividend for 1989-90 - Rs. 20 per equity share |
| 18-Dec-90 | Rights Issue of 1,000,000 equity shares (F.V. Rs. 100) at a premium of ₹ 75 per share |
| 1-Jan-91 | Public Issue of 1,450,000 equity shares (F.V. Rs. 100) at a premium of ₹ 85 per share |
| 30-Jul-91 | Final Dividend for 1990-91 - Rs. 22 per equity share |
| 7-Jul-92 | Final Dividend for 1991-92 - Rs. 24 per equity share |
| 25-Feb-93 | 47,25,000 FCD's of Rs. 800 each at the ratio of 1FCD for every 2 Equity share held consisting of 2 parts - Part A and Part B of ₹ 400 each (100 + 300 premium) |
| 27-Jul-93 | Final Dividend for 1992-93 - Rs. 25 per equity share |
| 17-Jun-94 | Final Dividend for 1993-94 - Rs. 28 per equity share |
| 4-Aug-94 | Private Placement of 900,000 equity shares (F.V. Rs. 100) to Financial Institutions |
| 25-Jul-95 | Final Dividend for 1994-95 - Rs. 32 per equity share |
| 17-Oct-95 | Private Placement of 1,786,400 equity shares (F.V. Rs. 100) to Foreign Institutional Investors |
| 6-Aug-96 | Final Dividend for 1995-96 - Rs. 37 per equity share |
| 25-Jun-97 | Final Dividend for 1996-97 - Rs. 45 per equity share |
| 11-Jul-98 | Final Dividend for 1997-98 - Rs. 75 per equity share |
| 10-Jul-99 | Final Dividend for 1998-99 - Rs. 85 per equity share |
| 6-Aug-99 | Splitting of Shares from FV of Rs. 100 to FV of Rs. 10 |
| 28-Feb-00 | Special Millenium Dividend - Rs. 10 per equity share |
| 8-May-00 | Second Interim Dividend - Rs. 9 per equity share |
| 18-Jul-01 | Final Dividend for 2000-01 - Rs. 12.50 per equity share |
| 26-Jul-02 | Final Dividend for 2001-02 - Rs. 25 per equity share |
| 30-Dec-02 | Issue of Bonus Shares - Ratio 1:1 |
| 19-Jul-03 | Final Dividend for 2002-03 - Rs. 11 per equity share |
| 20-Jul-04 | Final Dividend for 2003-04 - Rs. 13.50 per equity share |
| 16-Jul-05 | Final Dividend for 2004-05 - Rs. 17 per equity share |
| 19-Jul-06 | Final Dividend for 2005-06 - Rs. 20 per equity share |
| 28-Jun-07 | Final Dividend for 2006-07 - Rs. 22 per equity share |
| 17-Jul-08 | Final Dividend for 2007-08 – Rs. 25 per equity share |
| 23-Jul-09 | Final Dividend for 2008-09 – Rs. 30 per equity share |
| 24-Aug-09 | Combined offerings of Warrants with NCDs to QIBs on a QIP basis |
| 15-Jul-10 | Final Dividend for 2009-10 – Rs. 36 per equity share |
| 21-Aug-10 | Splitting of Shares from FV of Rs. 10 to FV of Rs. 2 |
| 9-Jul-11 | Final Dividend for 2010-11 – Rs. 9 per equity share of ₹ 2 each |
| 12-Jul-12 | Final Dividend for 2011-12 – Rs. 11 per equity share of ₹ 2 each |
| 24-Aug-12 | Last date for submission of Warrant Exercise Form |
| 20-Jul-13 | Final Dividend for 2012-13 - Rs. 12.50 per equity share of ₹ 2 each |
| 22-Jul-14 | Final Dividend for 2013-14 - Rs. 14 per equity share of ₹ 2 each |
| 30-Mar-15 | Interim Dividend for 2014-15 – Rs. 2 per equity share of ₹ 2 each |
| 29-Jul-15 | Final Dividend for 2014-15 - Rs. 13 per equity share of ₹ 2 each |
| 07-Apr-16 | Interim Dividend for 2015-16 – Rs. 3 per equity share of ₹ 2 each |
| 28-Jul-16 | Final Dividend for 2015-16 - Rs. 14 per equity share of ₹ 2 each |
| 20-Mar-17 | Interim Dividend for 2016-17 – Rs. 3 per equity share of ₹ 2 each |
| 27-Jul-17 | Final Dividend for 2016-17 – Rs. 15 per equity share of ₹ 2 each |
| 29-Mar-18 | Interim Dividend for 2017-18 – Rs. 3.5 per equity share of ₹ 2 each |
| 31-Jul-18 | Final Dividend for 2017-18 – Rs. 16.50 per equity share of ₹ 2 each |
| 25-Mar-19 | Interim Dividend for 2018-19 – Rs. 3.5 per equity share of ₹ 2 each |
| 03-Aug-19 | Final Dividend for 2018-19 – Rs. 17.50 per equity share of ₹ 2 each |
| 31-Jul-20 | Dividend for 2019-20 – Rs. 21 per equity share of ₹ 2 each |
| 22-Jul-21 | Dividend for 2020-21 – Rs. 23 per equity share of ₹ 2 each |
Stock Exchange / Trustees
The equity shares, non-convertible debentures and the warrants issued by the Corporation are listed on:
Phiroze Jeejeebhoy Towers
Dalal Street
Mumbai – 400 001
+91 22-2272 1233 / 34
+91 22-2272 1919
Exchange Plaza, Plot No. C/1, Block G, Bandra-Kurla Complex
Bandra (East),
Mumbai – 400 051
+91 22-2659 8100/ 114
+91 22-2659 8120
| Stock Exchange Codes | Reuters Code | Bloomberg Code |
|---|---|---|
| BSE-500010 | BSE-HDFC.BO | HDFC:IN |
| NSE - HDFC EQ | NSE-HDFC.NS | HDFC:IS |
Rupee Denominated Bonds issued by the Corporation to overseas investors are listed on London Stock Exchange (LSE), 10, Paternoster Square, London, EC4M7LS.
ISIN for equity shares: INE001A01036
Corporate Identity Number: L70100MH1977PLC019916
The Debenture Trustee
IDBI Trusteeship Services Limited.
Asian Building, Ground Floor
17, R. Kamani Marg, Ballard Estate
Mumbai – 400 001
Disclosures
With an aim to keep its shareholders abreast with all material information, HDFC promptly shares any disclosures made by it to the Stock Exchanges or made to its investors at large.
*Advertisements in this section pertains to loss of share certificates/Transfer of shares.
Debentures
HDFC issues secured Non-Convertible Debentures on a private placement basis under the approval of its shareholders and in terms of the applicable laws, rules and regulations governing the same. Details of debentures, disclosure document and all other relevant details are available here.
Qualified Institutions Placement
Dividend
Dividend declared at an annual general meeting is required to be paid within 30 days from the date of declaration of the said dividend. Companies are required to deposit the balance amount lying in the dividend account to an unclaimed dividend account within 37 days from the date of declaration. Any amount lying in the said account is termed as unclaimed dividend amount.
The details of the unclaimed dividend as on December 31, 2021 are as follows:
| Financial Year | Unclaimed Dividend as on December 31, 2021 (Rs.) | Unclaimed Dividend as % to total dividend payable | Date of declaration of Dividend | Last date for claiming Dividend |
|---|---|---|---|---|
| Interim Div 2014-15 | 45,82,714.00 | 0.15 | March 19, 2015 | April 20, 2022 |
| Final Div 2014-15 | 2,48,45,678.00 | 0.12 | July 28, 2015 | August 26, 2022 |
| Interim Div 2015-16 | 75,61,218.00 | 0.16 | March 21, 2016 | April 19, 2023 |
| Final Div 2015-16 | 3,26,18,362.00 | 0.15 | July 27, 2016 | August 25, 2023 |
| Interim Div 2016-17 | 76,28,763.00 | 0.16 | March 3, 2017 | April 1, 2024 |
| Final Div 2016-17 | 3,62,77,965.00 | 0.15 | July 26, 2017 | August 24, 2024 |
| Interim Div 2017-18 | 55,10,375.50 | 0.09 | March 16, 2018 | April 16, 2025 |
| Final Div 2017-18 | 2,39,97,138.00 | 0.09 | July 30, 2018 | August 28, 2025 |
| Interim Div 2018-19 | 58,87,700.00 | 0.10 | March 6, 2019 | April 6, 2026 |
| Final Div 2018-19 | 2,62,44,575.00 | 0.09 | August 2, 2019 | August 31, 2026 |
| 2019-20 | 2,98,40,442.00 | 0.10 | July 30, 2020 | August 28, 2027 |
| 2020-21 | 3,30,29,622.00 | 0.10 | July 20, 2021 | August 20, 2028 |
Dividends not encashed or claimed, within seven years from the date of its transfer to the unclaimed dividend account, will, in terms of the provisions of section 124 of the Companies Act, 2013, be transferred to the Investor Education and Protection Fund (IEPF), established by the Central Government. However, in terms of Section 124 (6) of the Companies Act, 2013 and Rule 7 of the IEPF Rules, a shareholder can claim the dividend from IEPF after its transfer, by making an application in Form IEPF 5 online (please visit http://www.iepf.gov.in/IEPF/refund.html)
The declared dividend which remains unpaid for a period of 30 days from the date of declaration will be transferred to unpaid dividend account for the concerned financial year You may claim your dividend by updating your bank details by submitting the required documents as mentioned above.
However, dividends not claimed, within seven years from the date of its transfer to the unpaid dividend account, will be transferred to the Investor Education and Protection Fund (IEPF) established by the Government.
As a policy, HDFC pays dividend to its shareholders commencing from the next day after its declaration. In case you have updated your Bank A/c details and still not received the credit of dividend amount in your bank account within 15 days from the date of declaration, kindly inform Investor Services Department of the Corporation (ISD) quoting your Folio Number / DP ID & Client ID.
In case of non-receipt of physical dividend warrant or dividend(s) of previous years - You are required to furnish a Declaration on plain paper. After verification, unclaimed/unpaid dividend(s) will be credited into your registered bank account.
Declaration format available at the link below:
For Declaration Format click here
In case the electronic payment fails or is rejected by the Bank, the Corporation shall issue dividend warrants / demand drafts with Bank A/c details printed on it and post it to the address registered with the Corporation / DP.
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The Corporation obtains the details of beneficiary holders (shareholders) from the Depositories as on the date of the book closure /record date fixed by the Board of Directors.
Dividend in respect of shares held in dematerialized form is normally paid electronically if the 9 digit MICR code is available in the said details.
In the absence of the said MICR code, physical instrument such as Banker’s cheque or demand draft with Bank A/c details printed on it are issued and dispatched to the address registered with the DP.
In respect of shareholders maintaining a bank account for dividend purpose with HDFC Bank Limited, the Corporation gives direct credit of the dividend amount to the said account.
In case you have updated your Bank A/c details, please return the outdated (stale) dividend warrant along with a request letter to ISD for electronic payment of dividend.
In case you have not updated your Bank A/c details, you are requested to kindly update the same by following the procedure explained at FAQ 1.
Subsequently, contact ISD for payment of your dividend electronically.
| Particulars | Dividend For 1995-96 To 2013-14 | Dividend From 2014-15 To 2020-21 |
|---|---|---|
| Status | Transferred to the Investor Education and Protection Fund (IEPF). | Will be transferred to IEPF on the due date. |
| Whether claimable? | Yes, It can be claimed from IEPF (www.iepf.gov.in). | Can be claimed from the Corporation before the due date of transfer to IEPF. |
Pursuant to section 124(5) of Act, 2013, a company shall transfer any amount lying in the Unpaid Dividend Account for 7 years along with interest accrued, if any, thereon to the Fund.
Any person whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares etc. has been transferred to the IEPF Fund, may claim the shares under provision to sub-section (6) of section 124 or apply for refund, under clause (a) of subsection(3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by making an application in Form IEPF-5 online available on IEPF website (www.iepf.gov.in) alongwith fee, as decided by the Authority from time to time in consultation with the Central Government, under his own signature.
If the Corporation declares any further dividend on the shares which have already been transferred to the Fund , the amount received on such shares shall also be transferred to the Fund.
Mr. Ajay Agarwal Company Secretary
Ms. Zenobia Baghal Asst. General Manager - Deposits
Ms. Vaishali Vyas Senior Manager – Secretarial
TAX DEDUCTED AT SOURCE(TDS) ON DIVIDEND
The rate of TDS (FY 2020-21) to be applied by the Corporation on the dividend would depend upon the status of the recipient and is explained herein below:
| Particulars | Resident Shareholders | Non Resident Shareholders - other than FIIs/FPIs | FII/FPIs |
|---|---|---|---|
| Applicable section | 194 | 195 | 196D |
| Threshold | ₹5000 (Applicable only to Individual Shareholders) | Nil | Nil |
| Form 15G / 15H | Can be submitted only by Individual shareholders | Not applicable | Not applicable |
| DTAA benefit | Not applicable | Subject to furnishing mandatory documents as prescribed under the Income tax Act | Subject to furnishing mandatory documents as prescribed under the Income tax Act |
| TDS rates | 10% | 20% (plus applicable surcharge and education cess) subject to applicable DTAA rates | 20% (plus applicable surcharge and education cess) subject to applicable DTAA rates |
(i) Resident shareholders:
In case of resident shareholders, Section 194 of the I-T Act provides mandate for withholding tax at the rate of 10% on dividend income
In absence of Permanent Account Number (PAN), TDS rate of 20% will apply as per the provisions of section 206AA of the I-T Act. Accordingly, shareholders who have not provided their PAN are requested to provide the same to the Corporation (in respect of shares held in physical form) or to the DP (in respect of shares held in electronic form), on immediate basis.
No tax shall be deducted at source on payment of dividend not exceeding ₹5000 to a resident individual shareholder.
Resident individual shareholder, whose total dividend income in a financial year exceeds ₹5,000 and who wish to receive dividend without deduction of tax at source may submit a declaration in Form No. 15G/ Form No. 15H, in original to the Corporation at its Registered Office. Shareholders are requested to note that while submission of original form is mandatory, they may submit the said documents online at https://investorservices.hdfc.com/isd_form15gh.
Kindly note that the threshold of ₹5,000 or option to file Form 15G / Form 15H is not applicable to Resident HUF shareholders and the Corporation would deduct TDS in respect of such shareholders, as specified under Section 194 in full.
(ii) Non-resident shareholders (other than Foreign Portfolio Investors/ Foreign Institutional Investors)
In case of non-resident shareholders other than foreign companies, section 195 of the I-T Act provides mandate for withholding tax at the rate of 20% plus applicable surcharge and health and education cess of 4% on dividend income thereby making effective rate of TDS as under:
For non-resident shareholders other than foreign companies and firms:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹50,00,000 | Nil | 20.80% |
| Dividend Income exceeds ₹50,00,000 but does not exceed ₹1,00,00,000 | 10% | 22.88% |
| Dividend Income exceeding ₹1,00,00,000 | 15% | 23.92% |
In case of non-resident shareholders, being foreign companies, the I-T Act provides mandate for withholding tax at the rate of 20% plus applicable surcharge and health and education cess of 4% on dividend income making effective rate of TDS as under:
For non-resident shareholders being foreign companies:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹1,00,00,000 | Nil | 20.80% |
| Dividend Income exceeds ₹1,00,00,000 but does not exceed ₹10,00,00,000 | 2% | 21.216% |
| Dividend Income exceeding ₹10,00,00,000 | 5% | 21.84% |
For non-resident shareholders being a firm:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹1,00,00,000 | Nil | 20.80% |
| Dividend Income exceeding ₹1,00,00,000 | 12% | 23.296% |
Please note that the Corporation in its sole discretion reserves the right to call for any further information and/or to apply domestic law / DTAA for TDS.
(iii) Non-resident institutional shareholders (Foreign Portfolio Investors/ Foreign Institutional Investors (FPI / FII))
In case of FPI / FII shareholders, the I-T Act provides mandate for withholding tax at the rate of 20% plus applicable surcharge and health and education cess of 4% on dividend income making effective rate of TDS as under:
For FPI/FII shareholders other than being a Company or a Firm:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹50,00,000 | Nil | 20.80% |
| Dividend Income exceeds ₹50,00,000 but does not exceed ₹1,00,00,000 | 10% | 22.88% |
| Dividend Income exceeding ₹1,00,00,000 | 15% | 23.92% |
For FPI/FII shareholders being a Company:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹1,00,00,000 | Nil | 20.80% |
| Dividend Income exceeds ₹1,00,00,000 but does not exceed ₹10,00,00,000 | 2% | 21.216% |
| Dividend Income exceeding ₹10,00,00,000 | 5% | 21.84% |
For FPI/FII shareholders being a Firm:
| Particulars | Surcharge Rate | Effective TDS rate |
|---|---|---|
| Dividend Income not exceeding ₹1,00,00,000 | Nil | 20.80% |
| Dividend Income exceeding ₹1,00,00,000 | 12% | 23.296% |
Treaty benefits under provisions of Double Tax Avoidance Agreements (DTAA)
In respect of non-resident shareholders (including foreign companies), the TDS rates mentioned above will be further subject to any benefits available under the Double Taxation Avoidance Agreement (DTAA) read with Multilateral Instrument (MLI) provisions, if any, between India and the country in which the non-resident is considered resident in terms of such DTAA read with MLI.
Further, Finance Act, 2021, inserted a proviso to section 196D(1) of the I-T Act to provide that in case of a payee to whom an agreement referred to in section 90(1) or section 90A(1) applies and such payee has furnished the TRC referred to in section 90(4) or section 90A(4) of the I-T Act, then the tax shall be deducted at the rate of 20% or rate or rates of income-tax provided in such agreement for such income, whichever is lower.
Accordingly, the TDS rates mentioned above will be further subject to any benefits available under the DTAA read with MLI provisions, if any, between India and the country in which such FPI/FII shareholder is considered as resident in terms of such DTAA read with MLI
This amendment is effective on all dividend payments on or after April 1, 2021.
In order to claim the benefit under DTAA, the Non-resident / FPI/FII shareholders would be required to submit the following documents each financial year on or before the record date fixed for determining the shareholders who are eligible to receive the dividend, if so approved at the ensuing AGM:
- Tax Residency Certificate (TRC) issued by the Tax/Government authority of the country in which such shareholder is a resident (valid for the relevant financial year);
- Form 10F containing therein information to be provided under Section 90(5)/90A(5) of the I-T Act, if not so covered in TRC (valid for the relevant financial year);
- Declaration from such shareholders stating the following:
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That the shareholder did not at any time during the relevant year have a permanent establishment in India;
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That the shareholder is the beneficial owner of the dividend;
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That the construct and affairs of the shareholder is not arranged with the main or principal purpose of obtaining any tax benefits, directly or indirectly, under the Tax Treaty; and
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That the arrangement of the shareholder is not covered under impermissible avoidance arrangement.
Please note that the Corporation in its sole and absolute discretion reserves the right to call for any further information and/or to apply domestic law / DTAA for TDS.
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(iv) Introduction of Section 206AB applicable to all shareholders (resident and non-resident)
Effective July 1, 2021, Finance Act, 2021 has inserted section 206AB of the I-T Act on special provision for TDS for non-filers of income-tax return whereby tax has to be deducted at twice the rate specified in the relevant provision of the Act.
Section 206AB(1) of the I-T Act provides that where TDS is required to be deducted under Chapter XVIIB, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid, or payable or credited, by a person to a specified person, the tax shall be deducted at the higher of the below rates:-
- at twice the rate specified in the relevant provision of the Act; or
- at twice the rate or rates in force; or
- at the rate of 5%.
Further, sub section (2) of section 206AB provides that where sections 206AA and 206AB are applicable i.e. the specified person has not submitted the PAN as well as not filed the return; the tax shall be deducted at the higher rate between both the said sections.
The term ‘specified person’ is defined in sub section (3) of section 206AB who satisfies the following conditions:
- A person who has not filed the income tax return for two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing of return of income under section 139(1) of the I-T Act has expired; and
- The aggregate of TDS and TCS in his case is ₹50,000 or more in each of these two previous years.
The non-resident who does not have the permanent establishment is excluded from the scope of a specified person.
Disclaimer: This Communication shall not be treated as an advice from the Corporation. Shareholders should obtain tax advice related to their tax matters from a tax professional.
For submission of Form No. 15G/ 15H, please click here