Hindustan Copper : Intimation of TDS on Dividend for FY 2022-23

Hindustan Copper Limited

(CIN: L27201WB1967GOI028825)

Regd. Office: 'Tamra Bhavan', 1, Ashutosh Chowdhury Avenue, Kolkata - 700 019 Phone: [phone],E-mail: [e-mail] 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.

1. 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)

1. Self-declarationin the prescribed format certifying on the following points (Refer Annexure 5):
2. • 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