Dear Shareholder,
We are pleased to inform you that the Board of Directors at their Meeting held on November 09, 2021 have decided to make payment of Interim dividend of Rs.1.25/- per equity share of face value of Rs. 10/- each (12.50% on the paid up equity share capital) for the Financial year 2021-22.
Who is eligible to receive Dividend and when it will be paid?
| Record Date |
November 23 2021
Members whose names appear in the Register of Members including the list of Beneficial Owners as provided by the Depositories as on November 23, 2021 (hereinafter referred as the ‘record date’). |
| Period when Dividend will be paid |
Interim Dividend will be paidwithin 30 days of declaration by the Board of Director. |
Tax Deduction at Source (TDS) on Dividend
Shareholders may note that pursuant to the changes in the Income Tax Act,1961 (‘the Act’) as amended by the Finance Act, 2020, dividend income will be taxable in the hands of the shareholders and the Company is required to deduct tax at source (TDS) at the time of making the payment of dividend to shareholders at the prescribed rates. The tax deduction / withholding tax rate would vary depending on the tax residential status of the shareholder and the exemptions as enumerated in the Act subject to fulfilling the documentary requirements.
The TDS/Withholding tax provisions for both categories of shareholders viz. Resident and Non- Resident are detailed below:
I. Resident shareholders:
In respect of Resident Shareholders, Tax will be deducted at source (“TDS”) under Section 194 of the Act @ 10% on the amount of dividend payable unless exempt under any of the provisionsof the Act subject to fulfilment of the following conditions:
1. Valid Permanent Account Number (“PAN”) will be mandatorily required.
2. Shareholders holding shares under multiple accounts under different status/ category (e.g., Resident and Non-Resident) and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.
3. For Shareholders who are identified as “Specified Persons” under Sec 206AB of the Act, higher tax rate as applicable would be deducted if
• Shareholder has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately before the previous year in which tax is required to be deducted/ collected immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired and
• Aggregate of tax deducted at source and tax collected at source is rupees fifty thousand or more in each of these two previous years.
For the purpose of TDS, Company will verify the status (i.e., Specified Person or not) from the Government enabled online facility and deduct TDS accordingly.
Apart from the above, specific provisions applicable to Resident-Individuals and Resident Non- Individuals are given below for ready reference.
IA. Resident Shareholders (Individual):
1. In case of Individuals, TDS would not apply if the aggregate of total dividend paid to them by the Company worked out on the basis of the folio(s) as on the record date does not exceed Rs.5,000/-.
2. Tax will not be deducted at source in cases where a shareholder provides duly signed Form 15G
Annexure-1 (applicable to an individual below the age of 60 years) / Form 15H
Annexure-2(applicable to an individual of the age of 60 years and above), provided that the eligibility conditions are met.
3. Shareholders who are required to link Aadhaar number with PAN as required under section 139AA(2) read with Rule 114AAA, should compulsorily link the same within the timelines as specified by Government of India which is June 30, 2021 failing which the PAN will become inoperative and Tax would be deducted at a higher rate under section 206AA of the Act. However, this is subject to amendments issued by the Income Tax authorities from time to time. For the purpose of verification of PAN-Aadhaar linkage, Company will verify the status from the Government enabled online facility after the expiry of cut-off date kept for submission of declaration and other forms and deduct TDS accordingly.
4. Valid PAN will be mandatorily required. However, if the PAN is not updated or is invalid or is deleted or becomes inoperative on account of non-linking with Aadhaar then the higher rate as per the Act (i.e., 20%) would apply.
IB. Resident Shareholders (Other than Individuals):
The TDS for Resident shareholders (other than individuals) along with required documents are provided in Table below:
| Category of Shareholder |
Tax Deduction Rate |
Exemption Applicability/ Documents required |
| Insurance Companies |
NIL |
Documentary evidence that the provisions of section 194 of the Act are not applicable to them:
1.PAN
2. Registration certificate along with
3. Self-declaration given in Annexure-3 |
| Mutual Funds |
NIL |
Documentary evidence to prove that the mutual fund is a mutual fund specified under clause (23D) of section 10 of the Act and is covered under Section 196 of the Act along
with Self-declaration given in Annexure-3 |
| Alternative Investment fund (AIF) established/ incorporated in India |
NIL |
Documentary evidence that the person is covered by Notification No. 51/2015 dated 25 June 2015
>(OR)
Self-declaration that its income is exempt under Section 10 (23FBA) of the Income Tax Act, 1961 and they are governed by SEBI regulations as Category I or Category II AIF along with the following documents
1. Self-attested copy of the PAN card
2. Registration certificate
3. Self-declaration given in Annexure-3 |
| Recognized Provident Fund |
NIL |
Self-attested copy of a valid order from Commissioner under Rule 3 of Part A of Fourth Schedule to the Act,
>(OR)
Self-attested valid documentary evidence (e.g., relevant copy of registration, notification, order, etc.) in support of the provident fund being established under a scheme framed under the Employees Provident Funds Act, 1952 needs to be submitted along with Self-declaration given in
Annexure-3 |
| Approved
Superannuation Fund / Approved Gratuity Fund
|
NIL |
Self-attested copy of valid approval granted by the
Commissioner needs to be submitted :
a)under Rule 2 of Part B of Fourth Schedule to the Act (In case of Approved Superannuation Fund)
b)under Rule 2 of Part C of Fourth Schedule to the Act (In case of Approved Gratuity Fund) along with Self-declaration given in Annexure-3 |
| NationalPension Scheme |
NIL |
Self-attested valid documentary evidence (e.g., relevant copy of registration, notification, order, etc.) grating approval to the Scheme along with Self-declaration given in
Annexure-3 |
| Entities exempt under Section 10 of the Act |
NIL |
If the income is exempt under the Act, the authorized signatory shall submit the declaration given in Annexure-3 duly signed with stamp affixed for the purpose of claiming exemption from TDS (entities as provided in Circular No.18
of 2017) |
| Corporation established by or under a Central Act/ State Act whichis, under any law for the time being in force, exempt from income- tax on its income including entities in which such corporations are the beneficial shareholders |
NIL |
Documentary evidence that the person is covered under section 196 of the Act along with self-declaration given inAnnexure-3 . |
| Order under section 197 of the Act |
Rate providedin the order |
Lower/NIL withholding tax certificate obtained from Income Tax authorities. |
| Benefit under Rule 37BA |
>Rates based on the status of the beneficial owners |
In case where shares are held by Clearing Member/ intermediaries/ stock brokers and TDS is to be applied by the Company in the PAN of the beneficial shareholders, then intermediaries/ stock brokers and beneficial shareholders will have to provide a declaration given in
Annexure-4 |
| Other resident shareholders without PAN/Invalid PAN/ Deleted PAN/ non-compliance of Section 206AB |
20% |
|
II. Non-resident Shareholder: In respect of Non-Resident Shareholders, Tax will be deducted at source (“TDS”) under Section 195 and Section 196D of the Act @ 20% (plus applicable surcharge and cess) on the amount of dividend payable unless exempt under the provisions of the Act as given below:
| Category of Shareholder |
Tax Deduction
Rate |
Exemption Applicability/ Documents required |
| Any non-resident shareholder (including Foreign Institutional Investors, Foreign Portfolio Investors (FII, FPI)) |
20%
(plus applicable surcharge and cess) or Tax Treaty rate whichever is lower |
As per Section 90 of the Act, a non-resident shareholder has an option to be governed by the provisions of the Double Taxation Avoidance Agreement (‘DTAA’) between India and the country of tax residence of the shareholder, if such DTAA provisions are more beneficial to such shareholder. To avail the DTAA benefits, the non-resident shareholder will have to compulsorily provide the following documents:
a.Copy of Permanent Account Number (PAN), if available.
b. Self-attested copy of Tax Residency Certificate (‘TRC’) issued by the revenue authorities of the country of which shareholder is tax resident, evidencing and certifying shareholder’s tax residency status during FY 2021-22.
c. Completed and duly signed Self-Declaration in Form 10F Annexure-5.
d. Self-declaration of having no taxable presence, fixed base or permanent establishment in India in accordance with the applicable Tax Treaty and Beneficial ownership by the non-residentshareholder (Annexure-6).
Application of beneficial under DTAA rate shall depend upon the completeness and satisfactory review by the Company of the documents submitted by the Non-Resident shareholders. The Company will apply its sole discretion and is not obligated to apply the beneficial DTAA rates for tax deduction on dividend payable to shareholders.
TDS shall be recovered at 20% (plus applicable surcharge and cess) if any of the above-mentioned documents are not provided. |
| Submitting Order under section 195(3)
/197 of the Act |
Rate provided in the Order |
Lower/NIL withholding tax certificate obtained from Income Tax authorities and submitted to the Company |
Note:
1. Shareholders holding shares under multiple accounts under different status/ category (eg. Resident and Non-Resident) and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.
2. For Shareholders who are identified as “Specified Persons” under Sec 206AB of the Act, higher tax rate as applicable would be deducted if
• Shareholder has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately before the previous year in which tax is required to be deducted/ collected immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired and
• Aggregate of tax deducted at source and tax collected at source is rupees fifty thousand or more in each of these two previous years.
For the purpose of TDS, Company will verify the status (i.e., Specified Person or not) from the Government enabled online facility and deduct TDS accordingly. It may be noted that as per sections 206AB, the specified persons shall not include a non-resident who does not have a permanent establishment in India.
Annexures:
To view / download Annexure 1 - Form 15G
click here.
To view / download Annexure 2 Form 15H
click here.
To view / download Annexure 3 - Resident Tax Declaration
click here.
To view / download Annexure 4 – Rule 37BA declaration
click here
To view / download Annexure 5 - Form 10F
click here.
To view / download Annexure 6 - Letter Foreign Company has no PE in India and Self declaration owner
click here.
Submission of Declarations and other Documents:
Kindly note that the shareholders are requested to mail signed, sealed, and certified the aforementioned documents latest by 12:00 PM, December 1, 2021 at
ahmedabad@linkintime.co.in and
investors@pardrugs.com in order to enable the Company to determine and deduct appropriate TDS / withholding tax rate. Kindly note that no communication/documents on the tax determination / deduction shall be considered post 12:00 PM (IST) of December 1, 2021.
It may be further noted that in case the tax on said Interim Dividend is deducted at a higher rate in the absence of receipt of the aforementioned details/documents from you or on application of provisions of Section 206AB or on account of PAN being treated as inoperative as the PAN is not linked with Aadhaar (in case of individuals), there would still be an option available with you tofile the return of income and claim an appropriate refund, if eligible.
No claim shall lie against the Company for such taxes deducted.
In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided / to be provided by the Shareholder(s), such Shareholder(s) will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings.
Pursuant to the General Circular No. 20/2020 dated 5th May 2020 issued by Ministry of Corporate Affairs, the dividend will be paid electronically in the Members’ bank accounts. Kindly note that the dividend shall be paid after deduction of the applicable tax at sources in the Members’ bank account.
Once the tax at sources is deducted and paid to the credit of the income-tax department by the company, the Member shall have to claim the deducted tax at sources from the income-tax department and no claim shall be lied against the Company for such deducted tax at sources.
Updating PAN, Email ID, Mobile, Bank and other details
Members are requested to verify / update their PAN, Email address for communication, Mobile number, Bank details etc.
(a) For Shares held in Demat form with the Depository Participants
(b) For Shares held in Physical form with the Company and its Registrar and Transfer Agents M/s. Link In time through email at
ahmedabad@linkintime.co.in and
investors@pardrugs.com along with supporting documents.
Shareholders, whose valid PAN is updated, will be able to see the credit of TDS in Form 26AS, which can be downloaded from their e-filing account at
https://www.incometax.gov.in/iec/foportal/
We request your cooperation in this regard. We urge you to stay safe.
Thanking you,
Disclaimer: The information set out herein above is included for general information purposes only and does not constitute legal or tax advice. Since the tax consequences are dependent on facts and circumstances of each case, the investors are advised to consult their own tax consultant with respect to specific tax implications arising out of receipt of dividend.
