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Ref: Folio / DP Id & Client Id No: 1203320183130939
Name of the Shareholder : MURUGESAN SIVAKUMAR
Dear Shareholder(s),
We are happy to inform you that the Board of Directors of the Company on December 06, 2023 have declared 2nd Interim Dividend of Rs. 6/- per Equity Share of face value of Rs. 2/- each for the Financial year 2023-24. The Record Date for entitlement of 2nd Interim Dividend has been fixed as December 14, 2023.
As you are aware, as per the Income-tax Act, 1961 (Act), as amended by the Finance Act, 2020, dividends paid or distributed by the Company after 1st April, 2020 shall be taxable in the hands of the Shareholders. Your Company shall therefore be required to deduct tax at source (TDS) at the time of making payment of the above said Dividend.
For Resident Shareholders, tax shall be deducted at source under Section 194 of the Act at 10% on the amount of Dividend declared and paid by the Company during FY 2023-24, subject to submission of PAN details by the Shareholder. If PAN is not submitted, TDS would be deducted @ 20% as per Section 206AA of the Act. Further, the TDS rate of 10% as per Section 194 is subject to the provisions of Section 206AB of the Act which introduces special provisions for TDS to be deducted at a higher rate of 20% (i.e. twice the rate prescribed under Section 194) in respect of non-filers of income-tax returns in certain conditions defined as 'specified persons'.
Specified person, as defined in Section 206AB of the Act briefly means 'a person who has not filed the return of income for the immediately preceding financial year on or before the time limit prescribed under sub-section (1) of Section 139 of the Act; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in that immediately preceding financial year.'
Your PAN which would be available in the database of the RTA/ Depository as on the record date will be considered by your Company for the purpose of tax deduction at source and for relevant tax compliances. For the specified person who has not submitted PAN and/ or has not filed the income-tax returns, the tax shall be deducted at the higher of the two rates prescribed in Section 206AA and Section 206AB of the Act.
Please note, we would not accept any PAN update requests subsequent to the record date and would consider the PAN available in the RTA/ Depository's record as final. In light of the provisions of the Act, however subject to Rule 37BA of Income-tax rules, your Company will determine the TDS rate/ amount, basis the PAN information prevailing on the record date and the said information will be used for subsequent TDS compliances, as prescribed by the Act and Rules thereunder.
No TDS shall be deducted on the Dividend payable to Resident Individuals if the total dividend to be received by them during financial year 2023-24 does not exceed Rs 5,000. Please note that this includes past dividends already declared and paid during FY 2023-24.
In case you continue to hold shares on the record date and want lower deduction of tax, than you are requested to submit Form 15G/ 15H (for Indian residents) and in case of NRI/Foreign shareholders, they are advised to submit the following documents as applicable:
As you are aware, as per the Income-tax Act, 1961 (Act), as amended by the Finance Act, 2020, dividends paid or distributed by the Company after 1st April, 2020 shall be taxable in the hands of the Shareholders. Your Company shall therefore be required to deduct tax at source (TDS) at the time of making payment of the above said Dividend.
For Resident Shareholders, tax shall be deducted at source under Section 194 of the Act at 10% on the amount of Dividend declared and paid by the Company during FY 2023-24, subject to submission of PAN details by the Shareholder. If PAN is not submitted, TDS would be deducted @ 20% as per Section 206AA of the Act. Further, the TDS rate of 10% as per Section 194 is subject to the provisions of Section 206AB of the Act which introduces special provisions for TDS to be deducted at a higher rate of 20% (i.e. twice the rate prescribed under Section 194) in respect of non-filers of income-tax returns in certain conditions defined as 'specified persons'.
Specified person, as defined in Section 206AB of the Act briefly means 'a person who has not filed the return of income for the immediately preceding financial year on or before the time limit prescribed under sub-section (1) of Section 139 of the Act; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in that immediately preceding financial year.'
Your PAN which would be available in the database of the RTA/ Depository as on the record date will be considered by your Company for the purpose of tax deduction at source and for relevant tax compliances. For the specified person who has not submitted PAN and/ or has not filed the income-tax returns, the tax shall be deducted at the higher of the two rates prescribed in Section 206AA and Section 206AB of the Act.
Please note, we would not accept any PAN update requests subsequent to the record date and would consider the PAN available in the RTA/ Depository's record as final. In light of the provisions of the Act, however subject to Rule 37BA of Income-tax rules, your Company will determine the TDS rate/ amount, basis the PAN information prevailing on the record date and the said information will be used for subsequent TDS compliances, as prescribed by the Act and Rules thereunder.
No TDS shall be deducted on the Dividend payable to Resident Individuals if the total dividend to be received by them during financial year 2023-24 does not exceed Rs 5,000. Please note that this includes past dividends already declared and paid during FY 2023-24.
In case you continue to hold shares on the record date and want lower deduction of tax, than you are requested to submit Form 15G/ 15H (for Indian residents) and in case of NRI/Foreign shareholders, they are advised to submit the following documents as applicable:
- Form 10F
- Tax Residency Certificate duly attested by the member
- PAN Card duly attested by the member
- Self-declaration of Tax Residency and beneficial ownership of shares
- Self-declaration by the shareholder of having no permanent establishment in India in accordance with the applicable tax treaty Certificate of Registration
- Any other document (as applicable to the country specific)
on the following link latest by 05:00 PM on on December 14, 2023..
Login (https://shareholderportal.
Any document received for lower tax deduction/no tax deduction after 05:00 PM on December 14, 2023 will not be considered.
Please click on the following links to download/view the forms:
Form 15G Click here
Form 15H Click here
Login (https://shareholderportal.
Any document received for lower tax deduction/no tax deduction after 05:00 PM on December 14, 2023 will not be considered.
Please click on the following links to download/view the forms:
Form 15G Click here
Form 15H Click here
Thanks and Regards
Yours faithfully,
For Hindustan Zinc Limited
Sd/-
Rajendra Pandwal
Company Secretary and Compliance Officer
Yours faithfully,
For Hindustan Zinc Limited
Sd/-
Rajendra Pandwal
Company Secretary and Compliance Officer
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