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Generating awareness on availability of Dispute Resolution Mechanism at Stock Exchanges against Listed Companies / Registrar to an Issue and Share Transfer Agents (RTAs)
Issuance of Securities in dematerialized form in case of Investor Service Requests
Common and Simplified Norms for processing investor’s service request RTAs and norms for furnishing PAN, KYC details and Nomination
Dear Shareholder,
As a part of its ongoing measures to enhance ease of dealing in securities markets and with a view to make process of Transmission of Shares more efficient and friendly, Securities and Exchange Board of India (SEBI), vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/65 dated May 18, 2022 specified the simplified procedure and standardized formats of documents for transmission of securities by Registrar & Share Transfer Agents (RTAs).
(a) duly signed transmission request form by the nominee;
(b) original death certificate or copy of death certificate attested by the nominee subject to verification with the original or copy of death certificate duly attested by a notary public or by a gazetted officer;
(c) self-attested copy of the Permanent Account Number card of the nominee, issued by the Income Tax Department.
(a) duly signed transmission request form by the legal heir(s)/claimant(s);
(b) original death certificate or copy of death certificate attested by the legal heir(s)/claimant(s) subject to verification with the original or copy of death certificate duly attested by a notary public or by a gazetted officer;
(c) self-attested copy of the Permanent Account Number card of the legal heir(s)/claimant(s), issued by the Income Tax Department;
(d) a notarized affidavit, in the format provided in Annexure-D from all legal heir(s) made on non-judicial stamp paper of appropriate value, to the effect of identification and claim of legal ownership to the securities.
However, in case the legal heir(s)/claimant(s) are named in any of the documents for transmission of securities as mentioned in serial number 2 in Annexure-A , an affidavit from such legal heir(s)/claimant(s) alone shall be sufficient;
(e) a copy of other requisite documents for transmission of securities as may be applicable as per Annexure-A, attested by the legal heir(s)/claimant(s) subject to verification with the original or duly attested by a notary public or by a gazetted officer:
The listed entity may, at its discretion, enhance the value of securities from the threshold limit of rupees five lakhs, in case of securities held in physical mode.
List of Annexures:
Sr. No.
Particulars
Form- web link
1.
Ready Reckoner: Documents Required for Transmission of Securities
Annexure-A
2.
Operational guidelines for processing investor’s service request for the purpose of Transmission of securities
Annexure-B
3.
Format of the form to be filed by nominee / claimant(s) / legal heir(s) while requesting transmission of securities
Annexure-C
4.
Format of affidavit to be given by all Legal Heirs or Legal Heirs named in Succession Certificate/ Probate of Will/ Will/ Letter of Administration/ Legal Heirship Certificate/Court Decree
Annexure-D
5.
Format of Bond of Indemnity to be furnished jointly by all Legal Heir(s) including the Claimant(s)
Annexure-E
6.
Format of NOC from other Legal Heir(s) for transmission of securities in favour of the Claimant(s)/legal heir(a)
Annexure-F
7.
Format of the Letter of Confirmation to be issued by RTAs/ Issuer Companies
Annexure-G
Securities and Exchange Board of India (SEBI), vide its Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/70 dated May 25, 2022 specified the simplified procedure and standardized formats of documents for issuance of duplicate share certificates.
With a view to make issuance of duplicate securities more efficient and investor friendly, the procedure and documentation requirements for issuance of duplicate securities has been further simplified. The requirements are as specified below:
Following documents required to be submitted by security holder while requesting for issuance of duplicate securities :
Form – web link
1
Affidavit for issuance of duplicate securities
Form-A
2
Indemnity for issuance of duplicate securities
Form-B
3
Format of Letter of Confirmation
Form-C
4
Investor Service Request Form – 4
ISR-4
In case of any query, kindly contact our RTA at the details provided below:
KFin Technologies Limited
Selenium Tower B, Plot 31 & 32
Financial District,
Nanakramguda
Hyderabad – 500032
Email: einward.ris@kfintech.com
Toll free: 1800 309 4001
Website: www.kfintech.com
Financial Year 2022-23
Financial Year 2021-22
Financial Year 2020-21
Subject: Intimation / Communication in respect to Deduction of tax at source on Dividend for Financial Year 2022-23.
We are pleased to inform that the Board of Directors of your Bank has recommended dividend of Rs. 3/- per Equity share of face value of Rs.10 each, subject to approval of Shareholders at the ensuing 21st Annual General Meeting of the Bank, scheduled to be held on Friday, 4th August, 2023 through Video Conference (VC) /Other Audio-Visual Means (OAVM).
As per the provisions of the Income Tax Act, 1961 (‘the Act’), dividend paid on or after 1st April 2020, is taxable in the hands of shareholders and depending upon the residential status and classification of the shareholders as per the provisions of the Act, the Bank is required to deduct tax at source (‘TDS’) from dividend paid to the shareholders at the applicable rates as mentioned below:
Resident Shareholders:
Sl
No
Tax Rate
Documents Required
Individual Shareholder receiving aggregate of total dividend not exceeding Rs. 5000 from the Bank during FY 2022-23.
NIL
Not Applicable
Shareholder with valid PAN (including individual shareholders receiving aggregate dividend in excess of Rs.5000 from the Bank during FY 2023-24)
10%
Shareholders to update / verify their PAN and residential status as per the Act, if not already done, with the Depository Participant (if shares are held in DEMAT form) and with the Bank’s Share Transfer Agent i.e., Datamatics Business Solutions
Ltd (if shares are held in Physical form).
Any resident individual Shareholder submitting Form 15G / Form 15H
a. Form 15G (applicable to individual below 60 years) (Annexure-A) / Form 15H (applicable to individual of 60 years or above) (Annexure-B) (as applicable)
b. Self-attested copy of PAN
Shareholder not having valid PAN / without registration of PAN / is a “specified person” as per Section 206AB of the Act.
20%
Shareholder submitting certificate under Section 197 of the Act
Rate
mentioned in the
certificate
Self-attested copy of the certificate under Section 197 obtained from Income Tax Authority. The same should be valid for FY 2022-23 and should cover dividend income.
5
Insurance Company under Section 194 of the Act.
a. Self-attested copy of PAN
b. Copy of registration certificate issued by IRDAI
c. Self-declaration in Annexure-C that the shareholder has full beneficial interest with respect to the shares owned by it.
6
Persons covered under Section 196 of the Act (Govt, RBI, Corporations established under Central Act and exempt from Income Tax, Mutual Fund under Section 10(23D))
A. Self-attested copy of PAN
B. Copy of registration / exemption substantiating the applicability of Section 196 of the Act.
C. Self-declaration in Annexure-C that the person is covered under Section 196 of the Act.
7
Alternative Investment Fund (AIF) established in India
B. Copy of registration certificate issued by SEBI
C. Self-declaration in Annexure C that its dividend income is not chargeable under the head 'Profit and Gains of Business or Profession' and exempt under section 10(23FBA) of the Act and they are established as Category I or Category II AIF under the SEBI regulations.
This rate is applicable for Category III AIF
8
Any other entity exempt from withholding tax under the provisions of section 197A of the Act (including those mentioned in Circular No. 18/2017 issued by CBDT)
A self- declaration in Annexure-C that the person is covered under the provisions of section 197A of the Act.
9
Any other entity entitled to exemption from TDS
Valid self-attested documentary evidence (e.g., copy of the relevant registration, notification, order, etc.) in support of the entity being entitled to TDS exemption.
Non-Resident Shareholders:
Sl No
Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs)
20% (plus applicable
surcharge and cess) or Tax Treaty rate** whichever is lower
Update/Verify the PAN and legal entity status asper the Act, if not already done, with the depositories. Provide declaration in Annexure-D whether the investment in shares has been made under the general FDI route or under the FPI route. Shareholders may also apply for a lower TDS rate as per the relevant Double Taxation Avoidance Agreements ('DTAA'), by submitting following documents:
a. Self-attested copy of PAN, if any. If PAN is not available, information to be provided under Rule 37BC(2) of Income Tax Rules, 1962 in Annexure-E
b. Tax Residency Certificate (TRC)^ obtained from the tax authorities of the country of which the shareholder is a resident, valid for FY 2022-23 (covering the period from April 1,2022 to March 31,2023);
c. Duly filled and Signed Form 10F in Annexure-F
d. Self-declaration for FY 2022-23 (covering the period from April 1, 2022 to March 31, 2023) as per Annexure-G from Non resident on shareholder's letterhead, primarily (not exclusive list) covering the following:
✓ Non-resident is eligible to claim
the benefit of respective tax
treaty
✓ Non-resident receiving the
dividend income is the beneficial
owner of such income
✓ Dividend income is not
attributable/effectively
connected to any Permanent
Establishment (PE) or Fixed Base
in India.
Other Non-resident shareholders (except those who are tax resident of Notified jurisdictional Area)
20% (plus
applicable
surcharge and cess)
OR
Tax Treaty
Rate**
(whichever is lower)
Shareholders to update / verify their PAN and residential status as per the Act, if not already done, with the Depository Participant (if shares are held in DEMAT form) and with the Bank’s Share Transfer Agent i.e., Datamatics Business Solutions.
To avail the lower rate, the following to be submitted:
A. Self-attested copy of PAN, if any. If PAN is not available, information to be
provided under Rule 37BC(2) of Income Tax Rules, 1962 in Annexure-E
B. Self-Attested copy of the Tax Residency Certificate (TRC) ^ valid for FY 2022-23, obtained from the tax authorities of the country of which the shareholder is a resident.
C. Duly filled and Signed Form 10F in Annexure-F
D. Self-declaration for FY 2022-23 (covering the period from April 1, 2022 to March 31, 2023) from Non-resident, in Annexure-G primarily covering the following:
➢ Non-resident is eligible to claim the benefit of respective tax treaty;
➢ Non-resident receiving the dividend income is the beneficial owner of such income;
➢ Dividend income is not attributable/effectively connected to any Permanent Establishment (PE) or Fixed Base in India;
➢ Non-resident complies with any other condition prescribed in the relevant Tax Treaty and provisions under the Multilateral Instrument ('MLI');
➢ Non-resident does not have a place of effective management in India.
Application of the beneficial rate of tax treaty for TDS is at the discretion of the Bank and shall depend upon completeness of the documentation and review of the same by the Bank.
Non-Resident
Shareholders who are tax residents of Notified
Jurisdictional Area as defined u/s 94A(1) of the Act
30%
Submitting
certificate u/s 197 (i.e. lower or NIL withholding tax certificate)
Rate provided in the certificate
If lower/ NIL withholding tax certificate obtained from Income tax authority is submitted, tax will be withheld at the rate specified in the said certificate, subject to furnishing a self-attested copy of the same. The certificate should be
obtained on TAN of the Bank i.e., MUMU08577C, valid for FY 2022-23 and should cover dividend income.
Non-resident
shareholder who is a “specified
person” as per section 206AB.
40% (plus applicable
Any other entity
entitled to
exemption from TDS
Self-declaration substantiating the fulfilment of prescribed conditions and Valid self-attested documentary evidence (e.g., copy of the relevant registration, notification, order, etc.) in support of the entity being entitled to TDS exemption.
^In case, the TRC is furnished in a language other than English, the said TRC would have to be translated from such other language to English language and thereafter duly notarized and apostilled copy of the TRC would have to be provided.
** The beneficial Tax Treaty rates will not automatically apply at the time of tax deduction/ withholding on dividend amounts. Application of beneficial Tax Treaty Rate shall depend upon the completeness and satisfactory review by the Bank of documents submitted by non-resident shareholders. In case documents are found to be incomplete, the Bank reserves the right to not consider the tax rate prescribed under the tax treaty.
Notes:
1. The above-mentioned forms / declarations can be downloaded from the Bank’s RTA at https://ris.kfintech.com/form15
2. If dividend income is taxable in hands of any person other than the recipient of the dividend (e.g. Clearing member/corporations), then requisite details to be provided by way of a declaration under Rule 37BA(2) of the Income Tax Rules, 1962 in Annexure H.
3. Form 15G / Form 15H can be submitted only in case the shareholder's income tax payable on estimated total income for FY 2022-23 is NIL.
4. Lower deduction Certificate u/s 197 of the Act may be obtained under TAN of the Bank i.e., MUMU08577C.
5. Shareholders may note that all documents to be submitted are required to be self-attested (the documents should be signed by shareholder/authorised signatory stating the document to be "certified true copy of the original"). In case of ambiguous, incomplete or conflicting information, or valid information/documents not being provided, tax at maximum applicable rate will be deducted.
6. In case of any discrepancy in documents submitted by the shareholder, the Bank will deduct tax at higher rate as applicable, without any further communication in this regard.
7. Where sections 206AA and 206AB are applicable i.e. the specified person has not submitted the PAN as well as not filed the return; the tax shall be deducted at higher of two rates prescribed in these two sections.
8. In the event of a mismatch in category of shareholder (individual, company, trust, partnership, local authority, Government, Association of Persons etc.) as per register of members and as per fourth letter of PAN (10 digit alpha-numeric number), the Bank would consider fourth letter of PAN for determining the category of shareholders and the applicable tax rate/ surcharge/ education cess.
9. The shareholders are requested to upload the aforementioned documents, duly filled and signed latest by 5 PM (IST), Friday, 28th July, 2023 with Bank’s RTA at https://ris.kfintech.com/form15 in order to enable the Bank to determine and deduct appropriate TDS / withholding tax rate. No communication on the tax determination/deduction shall be entertained post Friday, 28th July, 2023.
10. Soft copy of forms 15G / 15H / any other document addressed to the Bank shall either be digitally signed or original thereof shall be sent to the Bank’s RTA at the address given below:
KFin Technologies Limited Unit: Union Bank of India Selenium Tower B, Plot 31 & 32 Financial District, Nanakramguda Hyderabad – 500032 Toll free: 1800 309 4001 Website: www.kfintech.com
11. 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 from you, an option is available to you to file the return of income as per the Act and claim an appropriate refund, if eligible. No claim shall lie against the Bank for such taxes deducted.
12. In case of joint shareholders, the shareholder named first in the Register of Members is required to furnish the requisite documents for claiming any applicable beneficial tax rate.
13. 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 The Bank shall not be liable to entertain any request from such shareholder and the requisite steps will have to be taken by the shareholder at his / her end only. The shareholders are required to ensure that instructions mentioned herein are duly adhered to, failing which Bank would not be able to entertain any requests for allowing any exception, whatsoever.
Thanking You
Your Faithfully,
For Union Bank of India
Sd/-
(S.K. Dash)
Company Secretary
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.
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