Amal Ltd | Annual Report 2024-25 Amal Ltd 62 b) Instructions already given by the members for shares held in the physical form will not automatically apply to the dividend paid on shares held in electronic form. Fresh instructions regarding bank details must be given to the DPs. c) Instructions regarding the change in address, nomination and power of attorney must be given directly to the DPs. 06. The members may note that the Income Tax Act, 1961, as amended mandates that dividends paid or distributed by a company, will be taxable in the hands of the members. The Company will therefore be required to deduct tax at source (TDS) at the time of making the final dividend. To enable the Company to determine the appropriate TDS rate. The members are requested to submit the documents in accordance with the provisions of the Income Tax Act, 1961. a) For resident members, TDS will be deducted under Section 194 of the Income Tax Act, 1961, at 10% on the amount of dividend declared and paid by the Company during the financial year 202526, provided PAN is registered by the members. If PAN is not registered, TDS will be deducted at a 20% rate as per Section 206AA of the Income Tax Act, 1961. However, no tax will be deducted on the dividend payable to resident individuals if the total dividend to be received by them during the financial year 2025-26 does not exceed ` 10,000. Separately, in cases where the shareholder provides Form 15G (applicable to any person other than a company or a firm) | Form 15H (applicable to an individual above the age of 60 years), provided that the eligibility conditions are being met, no TDS will be deducted. b) For non-resident members, taxes are required to be withheld in accordance with the provisions of Section 195 of the Income Tax Act, 1961, at the applicable rates in force. As per the relevant provisions of the Income Tax Act, 1961, the withholding tax will be at 20% rate (plus applicable surcharge and cess) on the amount of dividend payable to them. However, as per Section 90 of the Income Tax Act, 1961, the non-resident members have the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) between India and the country of tax residence of the members, if they are more beneficial to them. For this purpose, that is, to avail of the tax treaty benefits, the non-resident members will have to provide the following: i) Self-attested copy of Tax Residency Certificate (TRC) obtained from the tax authorities of the country of which the members are a resident. ii) Self-declaration in Form 10F submitted at income tax portal if all the details required in this form are not mentioned in the TRC. iii) Self-attested copy of the PAN card allotted by the Indian income tax authorities. iv) Self-declaration, certifying the following points: • The members are and will continue to remain, tax residents of their respective countries during the financial year 2025-26. • The members are eligible to claim the beneficial DTAA rate for the purposes of tax withholding on the dividend declared by the Company. • The members have no reason to believe that their claim for the benefits of the DTAA is impaired in any manner. • The members are the ultimate beneficial owners of their shareholding in the Company and dividend receivable from the Company.
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