A. Resident Shareholders

Tax shall be deducted at source @10% for those resident shareholders with valid Permanent Account Number (PAN), @20% for resident shareholders without PAN or invalid PAN. 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 are 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 Rs. 5,000.

TDS to be deducted at a higher rate in case of non-filers of Return of Income (Resident Shareholders)

The Finance Act, 2021, had inter alia inserted the provisions of section 206AB of the Act with effect from July 1, 2021. The provisions of section 206AB of the Act require the deductor to deduct tax at higher of the following rates from amount paid/ credited to 'specified person':

1. At twice the rate specified in the relevant provision of the Act; or
2. At twice the rates or rates in force; or
3. At the rate of 5%

The meaning of ‘specified person’, as amended by Finance Act, 2022 with effect from April 1, 2022, is provided in the said section as under:

'Specified person' means a person who has:

1. Not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the return of income under sub-section (1) of section 139 has expired; and
2. The aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in the said previous year.

In view of the above provisions of Section 206AB of the Act, in respect of dividend paid to resident shareholders in the financial year 2023-24, who are liable to be treated as ‘specified person’ basis the output generated from the Compliance Portal of the income-tax department, tax shall be deducted at source at twice the applicable rates.

C. TDS to be deducted at higher rate in case of non-linkage of PAN with Aadhaar

As per Section 139AA of the Income Tax 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 with this, the PAN allotted shall be deemed to be invalid/inoperative and tax shall be deducted at the rate of 20% as per the provisions of section 206AA of the Act. Shareholders may visit https://www.incometax.gov.in/iec/foportal/ for FAQ issued by Government on PAN Aadhar linking.

The above referred documents, duly completed and signed (in xerox or original, as advised in below table) should be sent to the Registrar & Transfer Agent (“RTA”) of the Company, M/s. Link Intime India Private Limited as directed in Annexure-A.

1. In case where mandatorily originally signed documents are required to be submitted as mentioned in Annexure- A, the same should be submitted to our RTA at its Mumbai/ New Delhi address (Mr. Pradeep Mokale - Assistant Vice President, M/s. Link Intime India Private Limited, Unit- HCL Technologies Limited, C-101, 247 Park, L B S Marg, Vikhroli (West), Mumbai- 400083 or to Link Intime India Private Limited, Noble Heights, 1st floor, Plot No NH-2, C-1 Block, LSC, near Savitri Market, Janakpuri, New Delhi- 110058 within the above prescribed time limit. No communication on the tax deduction shall be entertained in respect of the dividend declared after the above time limit.
2. In case where only xerox documents are required to be sent as specifically mentioned in Annexure- A, the same should be sent to hcldivtax@linkintime.co.in through registered e-mail of the shareholder quoting Name, Folio number/ Demat Account No., Number of shares and PAN details of the shareholder on or before 5:00 PM (IST) of the Record Date fixed for the respective dividend in order to enable the Company to determine and deduct appropriate TDS/ withholding tax or the same can be uploaded online at the following link- click here

Note: If documents are required to be submitted in original as per Annexure- A, the same should not be submitted through this common Link. The same shall not be considered by the Company, if submitted.

Further, the Board of Directors of the Company in its meeting held on July 12, 2023 has declared an interim dividend of Rs.10/- per share. The Record Date of July 20, 2023 fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The payment date of the said interim dividend shall be August 1, 2023. Hence, to avail any benefit in the form of concessional TDS rate on the said interim dividend, the above documents should be submitted on or before the Record Date.

The declarations under Rule 37BA of the Income Tax Rules, 1962, if applicable, need to be submitted on or before the above Record date for enabling the Company to consider the same. All communications/ queries in this respect should be addressed and sent to our RTA, Link Intime India Private Limited at its email address mentioned above.

Shareholders may note that in case the tax on said dividend is deducted at a higher rate in absence of receipt or insufficiency of the aforementioned details/documents required from the shareholder, an option is available to the shareholder to file the return of income as per Income Tax Act, 1961 and claim appropriate refund, if eligible.

• Form 10F
• Form 15G & 15H
• Form No PE and Beneficial Ownership Declaration
• Form No PE declaration for non-resident shareholders for the purposes of Section 206AB of the Act

In order to know the amount of tax deducted, the Company shall be sending, after payment of dividend, the TDS certificate in respect of tax deducted to its shareholders in due course. Alternatively, the shareholders can also check Form 26AS from their e-filing accounts.

Best Regards,
For HCL Technologies Limited
Sd/-
Manish Anand
Company Secretary

Annexure-A

List of Documents to be submitted for non-deduction of Tax at Source or for applying for concessional Rates of TDS, subject to condition that provisions of Section 206AB of the Act are not applicable in the case of a shareholder