HDFC BANK LTD - Deduction of tax at source on dividend
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Ive recieved this mail from hdfc I've hdfc share please can anyone tell me in short what the purpose of this mail
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Dear Shareholder,
Subject: Deduction of tax at source on dividend
We hope that you and your family are safe and healthy.
We wish to inform you that the Board of Directors of your Bank (“Board”), at its meeting held on April 20, 2024, has recommended a dividend of Rs. 19.50 per equity share of the Bank of face value of Re. 1/- each, for the financial year ended March 31, 2024, subject to the approval of the shareholders of the Bank at its ensuing Annual General Meeting.
The dividend, as recommended by the Board and if approved at the ensuing Annual General Meeting to be held in 2024, will be paid to shareholders holding equity shares of the Bank, either in electronic or in physical form as on the record date, i.e. May 10, 2024.
In terms of the provisions of the Income-tax Act, 1961, (“the Act”), dividend paid or distributed by a Company on or after April 1, 2020 is taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of dividend. The deduction of tax at source will be based on the category of shareholders and subject to fulfilment of conditions as provided herein below:
For 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 provisions of the Act. However, in case of resident shareholders, TDS would not apply if the aggregate of total dividend distributed/paid to them by the Company during a financial year does not exceed Rs.5,000/-.
Tax will not be deducted at source in cases where a shareholder provides Form 15G (applicable to all individuals) / Form 15H (applicable to an individual above the age of 60 years), provided that the eligibility conditions are satisfied. Blank Form 15G and 15H can be downloaded from the link given at the end of this communication. Please note that all fields mentioned in the Form are mandatory and the Bank may reject the forms submitted, if they do not fulfil the requirement of the law.
NIL / lower tax shall be deducted on the dividend payable to following resident shareholders on submission of self-declaration (as per formats attached) as listed below:
.
Dear Shareholder,
Subject: Deduction of tax at source on dividend
We hope that you and your family are safe and healthy.
We wish to inform you that the Board of Directors of your Bank (“Board”), at its meeting held on April 20, 2024, has recommended a dividend of Rs. 19.50 per equity share of the Bank of face value of Re. 1/- each, for the financial year ended March 31, 2024, subject to the approval of the shareholders of the Bank at its ensuing Annual General Meeting.
The dividend, as recommended by the Board and if approved at the ensuing Annual General Meeting to be held in 2024, will be paid to shareholders holding equity shares of the Bank, either in electronic or in physical form as on the record date, i.e. May 10, 2024.
In terms of the provisions of the Income-tax Act, 1961, (“the Act”), dividend paid or distributed by a Company on or after April 1, 2020 is taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of dividend. The deduction of tax at source will be based on the category of shareholders and subject to fulfilment of conditions as provided herein below:
For 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 provisions of the Act. However, in case of resident shareholders, TDS would not apply if the aggregate of total dividend distributed/paid to them by the Company during a financial year does not exceed Rs.5,000/-.
Tax will not be deducted at source in cases where a shareholder provides Form 15G (applicable to all individuals) / Form 15H (applicable to an individual above the age of 60 years), provided that the eligibility conditions are satisfied. Blank Form 15G and 15H can be downloaded from the link given at the end of this communication. Please note that all fields mentioned in the Form are mandatory and the Bank may reject the forms submitted, if they do not fulfil the requirement of the law.
NIL / lower tax shall be deducted on the dividend payable to following resident shareholders on submission of self-declaration (as per formats attached) as listed below:
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https://www.desidime.com/discussions/hdfc-bank-ltd-deduction-of-tax-at-source-on-dividend?page=1#post_10053648
Unless you are receiving more than 5k as dividend, you have nothing to worry about.
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Not only HDFC, all the companies who are giving the dividend will send you this email.
It's telling you that they may deduct TDS as applicable.
If you are regularly filling your ITR, then ignore this. Otherwise if eligible you can submit the Form 15G/H. Same as bank/FD.