September 7, 2023
Dear Shareholder,
Subject:

Deduction of tax at source on dividend------------------------------------------------------The Board of Directors recommended final dividend of Rs. 1.67 per equity share(@16.70%) of Rs. 10/- each for the financial year 2022-23.
The ‘Record date’ for final Dividend is Friday, September 22, 2023 for determining theeligibility of shareholders to receive the dividend. The shareholders, holding shares of theCompany, in either electronic mode or in physical form, as on the Record Date, i.e. September
22, 2023 shall be eligible to receive the final Dividend.
As you may be aware, in terms of the provisions of the Income-tax Act, 1961, ("the Act") as
amended by the Finance Act, 2020, dividend paid or distributed by a Company on or after 1stApril, 2020 shall be taxable in the hands of the shareholders. The Company shall therefore berequired to deduct tax at source at the time of payment of final Dividend.
FOR RESIDENT SHAREHOLDERS:}

Tax will be deducted at source (“TDS”) under Section 194 of the Act @ 10% on the amount ofdividend payable unless exempt under any of the provisions of the Act. However, in case ofindividuals, TDS would not apply if the aggregate of total dividend distributed to them by
the Company during FY 2023-24 does not exceed Rs. 5,000.
Needless to mention, the Permanent Account Number ("PAN") will be mandatorily
required. If PAN is not submitted/updated/verified, TDS would be deducted @ 20% as per
Section 206AA of the Income Tax Act, 1961.
A. Tax Deductible at Source for Resident Shareholders (if no exemption is sought):
S.No.

Particulars (1)Withholding
Tax Rate (2)1.

Valid PAN updated
in the Company’sRegister ofMembers/Depository

2.

No PAN/Valid PAN 20%
not updated in theCompany’s Registerof Members.

10%

Documents Required (3)Update/Verify the PAN, and theresidential status as per Act, if not alreadydone, with the depositories (in caseequity shares are held in DEMAT mode)
and with the Company's Registrar andTransfer Agents (RTA) – Alankit
Assignments Ltd., Alankit House 4E/2,
Jhandewalan Extension New Delhi110055 , e-mail: rta@alankit.com (in caseequity shares are held in physical mode).
No document required

S.No.

Particulars (1)3.

Availability oflower/nil tax
deduction certificate
issued by IncomeTax Department u/s
197 of Income TaxAct, 1961

Withholding
Tax Rate (2)Documents Required (3)Rate specified
Lower tax deduction certificate obtainedin the certificate from Income Tax Authority.

No Tax Deductible at Source on dividend payment to resident shareholders if theShareholders submit and register following documents:

S.No.

Particulars (1)1.

Submission of form
15G/15H

2.

3.

4.

5.

6.

Shareholders to whom
Section 194 of theIncome Tax, 1961 does
not apply such as LIC,GIC, etc
Shareholder coveredu/s 196 of Income Tax
Act, 1961 such as
Government, RBI,corporations
established by Central
Act & mutual funds.
Category I and II
Alternative Investment
Fundi) Recognizedprovident fundsii) Approved
superannuation
fundiii) Approved gratuity
fundNational Pension
SchemeWithholding
Documents Required (3)Tax Rate (2)Nil
Declaration in Form No. 15G (applicableto any person other than a company or afirm) / Form 15H (applicable to an
Individual who is 60 years and above),fulfilling certain conditions.
Nil

Self-declaration/Documentary evidence
that the said provisions are notapplicable.

Nil

Self-declaration/Documentary evidence
for coverage u/s 196 of Income Tax Act,1961.

Nil

SEBI registration certificate to claim
benefit under section 197A (1F) of
Income Tax Act, 1961.
Necessary documentary evidence as per
Circular No. 18/2017 issued by Central
Board of Direct Taxes (CBDT).

Nil

Nil

No TDS as per section 197A (1E) of
Income Tax Act, 1961.

In order to provide exemption from withholding of tax, shareholders are requested tosubmit the aforesaid documents duly signed mentioned in column no. 3 by sending an email at company.secretary@midhani-india.in and to Company’s RTA viz.
rta@alankit.com not later than 05.00 P.M Thursday, September 21, 2023. The shareholders
are also advised to post/courier the documents to ‘Company Secretary – Mishra Dhatu
Nigam Limited - P.O. Kanchanbagh, Hyderabad – 500058.’
FOR NON-RESIDENT SHAREHOLDERS:
Tax is required to be withheld in accordance with the provisions of Section 195 of theIncome Tax Act, 1961 at applicable rates in force. As per the relevant provisions of the Act,the tax shall be withheld @ 20% (plus applicable surcharge and cess) on the amount of
final Dividend payable.
The Withholding tax on dividend payment to non-resident shareholders if the nonresident shareholders submit and register following document as mentioned in column
no. 3 of the below table with the Company/RTA:
S. No.

Particulars (1)Withholding Tax Rate
(2)

Documents Required (3)1.

Foreign
Institutional
Investors(FIIs) /Foreign
Portfolio
Investors(FPIs)

20% (plus applicablesurcharge and cess).

FPI registration number / certificate.

2.

Other Nonresident
shareholders

20% (plus applicablesurcharge and cess)or tax treaty rate
whichever isbeneficial.

To avail beneficial rate of tax treaty
following tax documents would be
required:
1. Tax Residency certificate issued byrevenue authority of country ofresidence of shareholder for theyear in which dividend is received.
2. PAN
3. Form 10F filled & duly signed
4. Self-declaration for non-existenceof permanent establishment/ fixedbase in India.
(Note: Application of beneficial Tax TreatyRate shall depend upon the completeness ofthe documents submitted by the NonResident shareholder and review to thesatisfaction of the Company. The Company
is not obligated to apply the beneficial DTAA

S. No.

Particulars (1)Withholding Tax Rate
(2)

Documents Required (3)rates at the time of tax deduction /withholding on dividend amounts.)

3.

Indian Branchof a Foreign
BankNilLower tax deduction certificate u/s
195(3) obtained from Income TaxAuthority
Self-declaration confirming that theincome is received on its own accountand not on behalf of the Foreign Bank.

5. Availability ofLower/NILtax deduction
certificate
issued by
Income Tax
Department
u/s 197 of
Income Tax
Act, 1961

Rate specified incertificate.

Lower tax deduction certificate
obtained from Income Tax Authority.
The certificate should be valid for theFY 2023-24 and should cover thedividend income.

TDS rate in case of ‘Specified Persons’:
The Finance Act, 1961 has inserted the provisions of Section 206AB of the Income Tax Act,
1961 with effect from July 1, 2021, pursuant to which the company would be liable todeduct tax at higher of the below rates on the dividend paid to ‘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%

For the purposes of section 206AB"specified person" meansa) A person who has not furnished the return of income for the assessment year relevantto 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 undersub-section (1) of section 139 has expired andb) the aggregate of tax deducted at source and tax collected at source in his case isrupees fifty thousand or more in the said previous year.
Non-resident shareholders who do not have a permanent establishment in India are
excluded from the scope of a ‘Specified Person’In cases where Sections 206AA and 206AB are applicable i.e., the shareholder has not
submitted PAN as well as not filed the return, tax will be deducted at higher of the rates
prescribed in these sections.
The Income Tax Department has issued a compliance check utility to check whether aperson is covered under the ‘specified person’ as defined under Section 206AB of the Act.
Accordingly, for determining TDS rate on Dividend, the Company will be using said
utility to determine the applicability of Section 206AB of the Act.
Kindly note that if any Non-Resident is a ‘specified person’ under the above-mentioned
provisions (i.e., they have not filed tax returns for the assessment year relevant to theprevious year immediately preceding the financial year in which tax is required to bededucted within due dates and their aggregate of TDS or TCS exceeds INR 50,000 peryear), a No Permanent Establishment (PE) declaration should be submitted to theCompany by September 21, 2023. In the event such declaration is not submitted, theCompany shall apply withholding tax at a higher rate as per provisions of section 206AB.
Shareholders also please note that linking of PAN and Aadhar is mandatory. Accordingly,
shareholders are requested to link their PAN with Aadhar on the Income tax website. Incase the PAN is not linked with Aadhar, then the PAN is liable to be treated as invalidand TDS would be deducted at higher rate prescribed in Section 206AA.
Declaration under Rule 37BA
In terms of Rule 37BA of the Income Tax Rules, 1962, if dividend income on which tax has
been deducted at source is assessable in the hands of a person other than the deductee,
then such deductee should file declaration with company in the manner prescribed in theRules.
Shareholders are requested to submit the aforesaid documents/ declarations asmentioned in column no. 3 by sending an e-mail at company.secretary@midhani-india.in
and to Company’s RTA viz. rta@alankit.com not later than 05.00 P.M Thursday,
September 22, 2023. The shareholders are also advised to post/courier the documents to‘Company Secretary – Mishra Dhatu Nigam Limited - P.O. Kanchanbagh, Hyderabad– 500058.’
No communication on the tax determination / deduction shall be entertained after 5.00
P.M. September 21, 2023.
In case tax on dividend is deducted at a higher rate in the absence of receipt of theaforementioned details / documents, you would still have the option of claiming refundof the excess tax paid at the time of filing your income tax return by consulting your taxadvisor. No claim shall lie against the Company for such taxes deducted. Shareholders will
be able to see the credit of TDS in Form 26AS, which can be downloaded from theire-filing account at https://incometaxindiaefiling.gov.in.
For further clarification or query on tax related issues, please send your mailto rta@alankit.com and shareholders are kindly requested to intimate your contact no. inthe mail so that we can get back to you in case of any issues.

This Communication is not exhaustive and does not purport to be a complete analysis or
listing of all potential tax consequences in the matter of dividend payment. Shareholders
should consult their tax advisors for requisite action to be taken by them.
We seek your co-operation in the matter.
Thanking You,Yours faithfully
For Mishra Dhatu Nigam Limited
Sd/Paul Antony
Company Secretary & Compliance Officer