Hindustan Copper Limited
(CIN: L27201WB1967GOI028825)
Regd. Office: 'Tamra Bhavan', 1, Ashutosh Chowdhury Avenue, Kolkata - 700 019 Phone: (033) 2283-2226,2202-1000,E-mail: investors_cs@hindustancopper.com Website:www.hindustancopper.com
Communication to Shareholders- Intimation of Tax Deduction on Dividend for FY 2022-23
Sir / Madam,
We are pleased to inform that Board of Directors of Hindustan Copper Ltd (HCL / the Company) in its meeting held on 19th May, 2023 has recommended payment of dividend at the rate of Rs.0.92 per equity share of face value of Rs. 5/- each equivalent to 18.32% on paid up capital of the Company for FY 2022-23, subject to approval of the shareholders at the Annual General Meeting (AGM) which has been convened on 29th September, 2023.
In accordance with provisions of the Income Tax Act, 1961 ('the Act') as amended by and read with the provisions of the Finance Act, 2020, applicable with effect from 1st April, 2020, dividend declared and paid by the Company is taxable in the hands of its shareholders, and accordingly the Company is required to deduct tax at source (TDS) at the applicable rates. The deduction of tax at source will be based on the residential status, category of shareholders and subject to fulfilment of conditions as provided herein below.
In view of the above, in the current financial year 2023-24, the Company shall be deducting TDS as per applicable provisions and TDS rates, while paying dividends.
Resident Shareholders:
Tax shall be deducted at source @ 10% for those resident shareholders with valid Permanent Account Number (PAN) and @ 20% for resident shareholders without PAN or invalid PAN (as per Sec 206AA of the Act). Hence, the shareholders are advised to update their PAN with the Depository Participant, if shares are held in Demat form, and with the Registrar and Share Transfer Agent of the Company, if shares held in Physical form.
However, no TDS shall be deducted on the Dividend payable to a resident Individual if the total dividend to be received by them during FY 2023-24 does not exceed INR 5,000. The threshold amount of INR 5,000/- shall be at the PAN (Permanent Account Number) level and not at Folio / DP level.
It may be noted that as per Section 139AA of the Act, every person who has been allotted a PAN and who is eligible to obtain Aadhaar, shall be required to link the PAN with Aadhaar. In case of failure to comply to the same, the PAN allotted shall be deemed to be invalid/ inoperative and he shall be liable to all consequences under the Act and tax shall be deducted at higher rates as prescribed under the Act. The Company shall be relying on the information verified by the utility available on the Income Tax website for such purpose.
Please note, we would not accept any PAN update requests subsequent to the Record Date (viz., 22nd September, 2023) and would consider the PAN available in the Share Transfer Agent/ 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 thereto.
Other Resident Shareholders:
Please refer to the table below for the rate of applicable TDS and documents to be provided to the Company's Registrar and Transfer Agents (RTA) - C B Management Services (P) Ltd on or before 25th September, 2023 (cut off period). Any documents submitted after the cutoff period will be accepted at the sole discretion of the Company:
Category of Shareholder | Documents to be provided / | Tax deduction rate | |||||||||||
Action required | |||||||||||||
Shareholder | having/ | not | Update the Permanent | Account | |||||||||
having PAN / Invalid PAN / | Number (PAN) if not already done | ||||||||||||
having | PAN | but | not | with | respective | Depository | |||||||
registered | with | respective | Participants (in case of shares held | ||||||||||
depository | participants | or | in demat mode) and with the | ||||||||||
Company's RTA or Company | Company's | Registrar | and | Transfer | |||||||||
Agents (RTA) - C B Management | |||||||||||||
Services (P) Ltd. (in case of shares | |||||||||||||
held in physical mode) by 25th | |||||||||||||
September, 2023 to take benefit of | |||||||||||||
applicable rate as per the following | |||||||||||||
status: | |||||||||||||
(A) | Shareholder | whose | PAN | is | 10% | ||||||||
registered | with | Depository | |||||||||||
Participants (in case of shares | |||||||||||||
held in demat mode) and with | |||||||||||||
the Company's RTA (in case of | |||||||||||||
shares held in physical mode) | |||||||||||||
(B) | Shareholder | submitting Form | Nil | ||||||||||
15G (applicable to an individual | |||||||||||||
below the age of 60 years)/ | |||||||||||||
Form 15H (applicable to an | |||||||||||||
Individual above the age of 60 | |||||||||||||
years), | subject | to | required | ||||||||||
eligibility conditions being met. | |||||||||||||
(Refer | Annexure | 1 | and | ||||||||||
Annexure 2, respectively) | |||||||||||||
(C) | Shareholders whose PAN is not | 20% | |||||||||||
registered/ is invalid or who has | |||||||||||||
been identified as a "specified | |||||||||||||
person" by the income tax | |||||||||||||
functionality | |||||||||||||
Shareholder who submits the | Self-attested lower/ NIL withholding | At the Rate | |||||||||||
Order under Section 197 of | tax | certificate | obtained | from | tax | provided in the | |||||||
the Income-tax Act, 1961 | authority to be submitted. The | Order | |||||||||||
certificate | should be | valid for | the |
financial year 2023-24 and should | ||||||||
cover the dividend income. | ||||||||
Insurance | Companies: | (a) | Self-declaration that | it | Nil | |||
Public | & | Other Insurance | qualifies as 'Insurer' as per | |||||
Companies | to | whom | section 2(7A) of the Insurance | |||||
provisions of Section 194 of | Act, 1938 and it has full | |||||||
the Income-tax Act, 1961 are | beneficial interest with respect | |||||||
not applicable. | to the shares owned by it; | |||||||
(Refer Annexure 3); | ||||||||
(b) Documentary evidence that the | ||||||||
provisions of section 194 of the | ||||||||
Act are not applicable; | ||||||||
(c) Self-attested copy of PAN Card; | ||||||||
and | ||||||||
(d) | Self-attested | copy | of | |||||
registration certification issued | ||||||||
by the IRDAI. | ||||||||
Alternative Investment | (a) | Self-declaration stating that the | Nil | |||||
Fund as defined in Clause | shareholder is (Refer Annexure | |||||||
(a) of Explanation 1 of Sec | 3) | |||||||
115UB of the Act | − Category I | or Category | II | |||||
Alternative | Investment Fund | |||||||
and is regulated by the | ||||||||
Securities and Exchange Board | ||||||||
of India; | ||||||||
− is covered by Notification No. | ||||||||
51/2015 dated 25th June 2015; | ||||||||
− its income is exempt under | ||||||||
section 10(23FBA) of the Act; | ||||||||
and | ||||||||
- has full beneficial interest with | ||||||||
respect to the shares owned by | ||||||||
it. | ||||||||
(b) | Self-attested | copy | of | |||||
registration certificate; and | ||||||||
(c) | Self-attested copy of PAN Card. | |||||||
Mutual Funds specified u/s | (a) | Self-declaration stating that the | Nil | |||||
10(23D) | & | covered | under | shareholder is (Refer Annexure | ||||
Section 196 of the Income- | 3) | |||||||
tax Act, 1961 | - | a Mutual Fund as specified in | ||||||
Section 10(23D) of the Income- | ||||||||
tax Act, 1961; | ||||||||
- is covered by Section 196(iv) of | ||||||||
Income-tax Act, 1961; and | ||||||||
- has full beneficial interest with | ||||||||
respect to the shares owned by | ||||||||
it. | ||||||||
(b) | Self-attested | copy | of | |||||
registration certificate; and | ||||||||
(c) | Self-attested copy of PAN Card |
Govt. of India, Corporation | Self-declaration specifying the | Nil |
established by or under a | specific Central Act under which | |
Central Act which is, under | such corporation is established and | |
any law for the time being in | that their income is exempt under | |
force, exempt from income- | the provisions of Income Tax Act, | |
tax on its income (Section | 1961 along with a self-attested copy | |
196) | of the PAN card and registration | |
certificate | ||
New Pension System Trust | Self-declaration that it qualifies as | Nil |
NPS trust and income is eligible for | ||
exemption under Section 10(44) of | ||
the IT Act and being regulated by | ||
the provisions of the Indian Trusts | ||
Act, 1882 along with self-attested | ||
copy of the PAN card and | ||
registration certificate. | ||
Non-Resident Shareholders:
Generally, tax shall be deducted at source @ 20% (plus applicable surcharge and cess) on dividend paid to non-resident shareholders, in accordance with the provisions of Section 195 of the Act at applicable rates in force and Section 196D of the Act.
Please refer to the below table for the rate of applicable TDS and documents to be provided to Company's RTA - C B Management Services (P) Ltd on or before 25th September, 2023 (cut off period). Any documents submitted after the cut-off period will be accepted at the sole discretion of the Company:
Particulars | Documents to be provided | Tax deduction Rate | |||||||
Shareholder who submits the | Lower | / | Nil | withholding | tax | Rate as prescribed in | |||
Order under Section 197 of the | certificates obtained from the tax | the order | |||||||
Income-tax Act, 1961 | authority. | ||||||||
Other | Non-Resident | Documents required to claim treaty | |||||||
shareholders | benefits: | ||||||||
(this | includes | Foreign | (a) | Self-attested | copy | of | the | ||
Companies, | Foreign | Permanent Account Number (PAN | |||||||
Institutional Investors (FIIs), | Card) | allotted | by | the | Indian | 20% (plus applicable | |||
Foreign | Portfolio | Investors | Income-tax authorities, if any. In | surcharge and cess) | |||||
(FPIS), Bodies Corporate, NRI, | case, PAN is not available, the non- | ||||||||
Foreign | Nationals | and other | resident | shareholder | shall furnish | OR | |||
foreign entities) | (a) name, (b) email id, (c) contact | Tax Treaty Rate | |||||||
number, (d) address in residency | |||||||||
country, | (e) | Tax | Residency | (whichever is lower) | |||||
Certificate and | Tax | Identification | |||||||
Number of the residency country | |||||||||
(Refer Annexure 6). | |||||||||
(b) | Self-attested | copy | of Tax | ||||||
Residency | Certificate | ||||||||
(TRC) obtained | from | the | tax | ||||||
authorities of the country of which | |||||||||
the shareholder | is | tax | resident, |
Particulars | Documents to be provided | Tax deduction Rate |
evidencing and certifying shareholder's tax residency status during FY 2023-24.
-
Completed and duly signed Self- declaration in Form 10F (to be
furnished and verified electronically). As you may already be aware, pursuant to Notification No. 03/2022 dated 16 July 2022 of the Central Board of Direct Tax (CBDT), Form 10F is required to be obtained electronically by the non- resident shareholders having Permanent Account Numbers (PAN), through the e-filing portal of the Income Tax website. However, in terms of the CBDT Notifications dated 12 December 2022 and 28 March 2023, non- resident taxpayers not having PAN and also not required to have PAN as per the relevant provisions of the Act have been exempted from the mandatory electronic filing of Form 10F till 30 September 2023. Therefore, such category of taxpayers may furnish Form 10F in manual mode till 30 September 2023, along with an undertaking that they are so covered by the
CBDT Notifications. (Refer
Annexure 4)
- Self-declarationin the prescribed format certifying on the following points (Refer Annexure 5):
- Shareholder is and will continue to remain a tax resident of the country of its residence during the Financial Year 2023-24;
- Shareholder is eligible to claim the beneficial DTAA rate for the purposes of tax withholding on dividend declared by the Company;
- Shareholder has no reason to believe that its claim for the benefits of the DTAA is impaired in any manner;
- Shareholder is the ultimate beneficial owner of its
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Hindustan Copper Ltd. published this content on 29 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2023 08:02:03 UTC.