Abbott India : Communication on Deduction of Tax at Source on Dividend – 2021-22 (PDF, 150KB)

Abbott India Limited	Registered Office:	Tel: [phone]/2000
Godrej BKC, Plot C-68,"G"Block,	3, Corporate Park,	Fax : [phone]
15-16th Floor, Bandra-Kurla Complex,	Sion Trombay Road,	E-mail : [e-mail]
Near MCA Club, Bandra (E),	Mumbai - 400 071.India	Website : www.abbott.co.in
Mumbai - 400 051. India		CIN: L24239MH1944PLC007330

Subject: Abbott India Limited - Communication on Deduction of Tax at Source on Dividend

Dear Member,

We are pleased to inform you that the Board of Directors at its Meeting held on May 17, 2022 recommended a final dividend of Rs. 145/- and special dividend of Rs. 130/- per equity share of Rs 10/- each for the financial year ended March 31, 2022 ("Dividend"), subject to approval of the Members at the ensuing Annual General Meeting to be held on August 10, 2022.

The Dividend, if approved by the Members, will be paid on or after August 17, 2022 to the Members whose names appear on the Register of Members as on August 10, 2022 and to the Beneficial Owners of the Shares as on August 3, 2022 ("Record date"), as per the details furnished by the Depositories for this purpose. As per the Income Tax Act, 1961 (IT Act), dividends paid or distributed by companies on or after April 1, 2020 shall be taxable in the hands of the Shareholders. The Company shall, therefore, be required to deduct tax at source at the prescribed rates ("TDS") at the time of making the payment of the Dividend.

Also, please note that the TDS rate would vary depending on the residential status, category of the shareholder, compliant/non-compliant status in terms of Section 206AB of the IT Act (provisions given below) and is subject to submission of all the requisite declarations/documents to the Company. Detailed instruction regarding the same is given in the table below.

Updation of Details for payment of Dividend

You are requested to register/update your Permanent Account Number (PAN), Bank details, Email address, Mobile number, Residential address, Residential status in India (i.e. Resident or Non-Resident for FY 2022-23) with your Depository Participant (in case of electronic holding) or with the Company/Registrar and Share Transfer Agent (in case of physical holding) by August 3, 2022 along with the ISR forms. Details available with the Company in the Register of Members/Register of Beneficial Ownership maintained by the Depositories will be relied upon by the Company, for the purpose of complying with the applicable TDS provisions.

Provisions related to TDS and documents required

You are requested to take note of the below stated TDS rates and document(s), if any, required to be submitted to the Company for your respective category on or before August 3, 2022, in order to comply with the applicable TDS provisions.

Resident Members

For Resident Individuals	- No tax shall be deducted on the dividend
	payable to resident individuals if the total
	dividend to be received during financial year
	2022-23 does not exceed Rs 5,000/-.
	- TDS shall be deducted at the rate of 10%
	on the amount of dividend payable provided
	valid PAN is updated with the Depository

	Participant in case shares are held in
	dematerialized form; or Registrar and
	Transfer Agent ('RTA') in case shares are
	held in physical form and no exemption
	sought by Shareholder.
	- No tax shall be deducted on the dividend
	payable to resident individuals if the Member
	has provided Form 15H (applicable to an
	Individual above the age of 60 years) or
	Form 15G (applicable to an individual who is
	less than 60 years), as per the attached
	formats, provided that all the required
	eligibility conditions are met.
	- In case of Members who have provided a
	valid certificate issued under section 197 of
	the IT Act for lower/nil rate of deduction or an
	exemption certificate issued by income tax
	authority, the rates mentioned in such
	certificate shall be considered for deduction
	of tax at source.
	Note: Registering the valid Permanent
	Account Number (PAN) for the registered
	Folio	No./DP	ID/Client ID is	mandatory.
	In absence of PAN/Valid PAN, tax will be
	deducted at a higher rate of 20%, as per
	Section 206AA of the IT Act.
	Kindly note that the above rates will be
	subject to provisions of section 206AB of the
	IT Act as mentioned below.
	Download Forms -
	Click	Here	to download	Form 15H
	Click Hereto download Form 15G
For Resident Non-Individuals	- TDS shall be deducted at the rate of 10%
	on the amount of dividend payable, provided
	valid PAN is updated with the Depository
	Participant in case shares are held in
	dematerialized form; or Registrar and
	Transfer Agent ('RTA') in case shares are
	held in physical form and no exemption
	sought by Shareholder.
	- No tax shall be deducted at source on the
	dividend payable to certain resident non-
	individuals as per the provisions of the IT Act
	on submission of the documents mentioned
	below:
	(a) Insurance Companies/Business Trust
	specified in the second proviso to
	Section 194 of the IT Act: Self-declaration

that the Insurance Company/Business Trust has full beneficial interest with respect to the shares owned by it along with an attested copy of the PAN of the insurance company and adequate documentary evidence (e.g., registration certificate), to the effect that the no TDS is required as per provisions of section 194 of the IT Act.

1. Mutual Funds: Self-declaration along with certificate of registration under Section 10(23D) of the IT Act issued by the appropriate authority along with an attested copy of the PAN of the mutual fund.
2. Alternative Investment Fund: Self- declaration that its income is exempt under Section 10 (23FBA) of the IT Act and that the Fund is governed by the SEBI Regulations as Category I or Category II Alternative Investment Fund, along with an attested copy of the PAN and registration certificate.
3. Other Non-IndividualMembers: Documentary evidence along with an attested copy of the PAN for Members who are exempted from deduction of tax under Section 194 of the IT Act and categories covered under Section 196 of the IT Act.
4. Any other entity exempt from TDS under the provisions of section 197A of the IT Act (including those mentioned in Circular No. 18/2017 issued by CBDT): Self-declaration along with adequate documentary evidence, substantiating the nature of the entity along with an attested copy of the PAN.

In case of Members who have provided a valid certificate issued under Section 197 of the IT Act for lower/nil rate of deduction or an exemption certificate issued by income tax authority, the rates/exemptions mentioned in such certificate shall be considered for deduction of tax at source.

Note: Registering the valid Permanent Account Number (PAN) for the registered Folio No./DP ID/Client ID is mandatory. In absence of PAN/Valid PAN, tax will be deducted at a higher rate of 20%, as per Section 206AA of the IT Act.

Kindly note that the above rates will be subject to provisions of section 206AB of the IT Act as mentioned below

Format for Declaration: To download, click on Annexure 1or Annexure 2as applicable.

Non-Resident Members

Non-resident Members can avail the benefit of Double Tax Avoidance Agreement (Tax Treaty) between India and their country of residence on submission of the documents mentioned below:

1. Self-attestedcopy of the Permanent Account Number (PAN Card) allotted by the Indian Income Tax authorities.
2. Self-attestedcopy of Tax Residency Certificate (TRC) (of FY 2022-23 i.e. covering the period from April 1, 2022 to March 31, 2023) obtained from the tax authorities of the country of which the Member is resident.
3. Self-declarationin Form 10F (Refer Annexure 8 given below) if all the details required in this form are not mentioned in the TRC.
4. Self-declarationby the non-resident Member of having no Permanent Establishment/Fixed base or place of business/Business Connection/Place of Effective Management, in India in accordance with the applicable Tax Treaty (of FY 2022-23 or calendar year 2022) along with Self-declaration of Beneficial ownership (of FY 2022-23 or calendar year 2022) by the non-resident Member (Refer Annexure 9 given below).
5. Any other documents prescribed under the IT Act for lower or nil withholding of tax, if applicable.

Kindly note that the Company is not obligated to apply beneficial tax treaty rates at the time of tax deduction/withholding on dividend amounts. Application of beneficial rate of tax treaty for the purpose of withholding taxes shall depend upon completeness and satisfactory review by the Company of the documents submitted by the non-resident Member.

In case of Non-resident Shareholders (except those who are tax residents of Notified Jurisdictional Area), TDS rate of 20% (plus applicable surcharge and cess) or TDS rate as per Tax Treaty, whichever is beneficial will be applied subject to submission of documents as mentioned above.

In case of Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area as defined under section 94A (1) of the IT Act, TDS rate of 30% will be applicable.

In case of Non-Resident shareholders obtaining lower/nil tax deduction certificate issued by Income Tax Department under section 195 or section 197 of the IT Act, TDS will be applied as per the rate specified in lower/nil tax withholding certificate obtained from Income Tax Department.

In case of Non-resident Shareholders who are Alternative Investment Fund - Category III located in International Financial Services Centre, taxes shall be withheld at 10% plus applicable surcharge and cess in accordance with provisions of Section 196D of the IT Act. To download the Form, click on Annexure 3.

In case shareholders are covered under section 10(23FE) of the IT Act, no tax shall be deducted where the Shareholder submits copy of the notification issued by CBDT substantiating the applicability of section 10(23FE) of the IT Act issued by the Government of India along with self-declaration that the conditions specified in section 10(23FE) of the

IT Act have been complied with. To Download, click on Annexure 4or Annexure 5or Annexure 6as applicable.

In case of Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), taxes shall be withheld at 20% plus applicable surcharge and cess or tax treaty rate whichever is beneficial in accordance with provisions of Section 196D of the IT Act, provided such FII/FPI provides PAN, Self-Declaration (To download, click on Annexure 7), Copy of Tax Residency Certificate for the Financial Year 2022 covering the period from April 1, 2022 to March 31, 2023 and Self Declaration in Form 10F (To download, click on Annexure 8).

To download No PE Declaration, click on Annexure 9.

Members having multiple accounts under different Status/Category

Members holding shares under multiple accounts under different status/category 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.

Summary of applicable TDS/withholding tax rate

The said Dividend will be paid after deducting the tax at source as under:

1. Nil for resident shareholders in case Form 15G/Form15H (as applicable) along with self-attested copy of the valid PAN is submitted.
2. 10% for resident shareholders in case valid PAN is provided/available.
3. 20% for resident shareholders in case valid PAN is not provided/not available.
4. Beneficial tax treaty rate (based on tax treaty with India) for non-resident shareholders, as applicable will be applied based on the documents submitted by the non-resident shareholders.
5. 20% plus applicable surcharge and cess for non-resident shareholders including FII/FPI in case the aforementioned documents are not submitted.
6. At the rates prescribed in the nil/lower withholding certificate, if such certificate is made available.
7. Kindly note that the above rates will be subject to provisions of section 206AB of the IT Act as mentioned below.

Section 206AB applicable to all Shareholders (Resident and Non-Resident)

Section 206AB of the Act mandates special provisions for TDS in respect of taxpayers who have not filed their income-tax return for the previous year (referred to as specified persons). Now, as per provisions of section 206AB of the Act, tax is to be deducted at higher of the following rates in case of payments to the specified persons:

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