Investors

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 unclaimed dividend as on May 31, 2023, are as follows:

Financial Year Unclaimed Dividend as on May 31, 2023 (Rs.) Unclaimed Dividend as % to total dividend payable Date of declaration of Dividend Last date for claiming Dividend
Interim Div 2015-16

73,03,87,154.00

0.14 July 27, 2016 August 25, 2023
Final Div 2016-17 7,03,99,41.00 0.15 March 3, 2017 April 1, 2024
Interim Div 2016-17 3,39,30,990.00 0.15 March 3, 2017 April 1, 2024
Final Div 2016-17 4,82,37,00.00 0.08 March 16, 2018 April 16, 2025
Interim Div 2017-18 2,08,32,834.00 0.07 July 30, 2018 August 28, 2025
Final Div 2017-18 5,11,33,88.00 0.08 March 6, 2019 April 6, 2026
Interim Div 2018-19 2,22,30,215.50 0.07 August 2, 2019 August 31
2019-20 2,56,56,256.00 0.08 July 30, 2019 August 28, 2027
2020-21 2,83,50,435.00 0.08 July 20, 2021 August 20, 2028
2021-22 3,92,25,036.00 0.08 June 30, 2022 July 29, 2029
Interim Div 2022-23 1,41,08,225.00 0.02 May 04, 2023 June 03, 2030

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)

Nodal Officer

Mr. Ajay Agarwal
Company Secretary

Deputy Nodal Officer

Mr. Mangesh Raje
Dy. General Manager - Deposits

Deputy Nodal Officer

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 ₹5,000 (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 ₹5,000 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.

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:

  1. That the shareholder did not at any time during the relevant year have a permanent establishment in India;
  2. That the shareholder is the beneficial owner of the dividend;
  3. 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
  4. 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.

(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

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