Full Press Release Details
National Stock Exchange of India Ltd. (Scrip
BSE Limited (Scrip Code: 500124)
Sub: TDS communication sent to shareholders
Pursuant to Regulation 30 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, please find attached the communication as sent to all the shareholders
with respect to the deduction of tax at source on dividend pay-out.
This is for your information.
For Dr. Reddy's Laboratories Limited
| /s/ K Randhir Singh |
| K Randhir Singh |
| Company Secretary & Compliance Officer |
CC:- New York Stock Exchange Inc.(Stock Code
Sub: Communication in respect of deduction
of tax at source on dividend pay-out
We are pleased to inform you that the Board
of Directors of the Company at their meeting held on May 19, 2022, have recommended a final dividend of Rs.30 per equity share
of Rs. 5 each, for the financial year ended March 31, 2022. This dividend is subject to approval of the shareholders at the forthcoming
Annual General Meeting.
Shareholders may note that pursuant to the
changes in the Income Tax Act, 1961 ( the Act') as amended by the Finance Act, 2020, dividend income will be taxable
in the hands of the shareholders and the Company is required to deduct tax at source (TDS) at the time of making the payment of
dividend to shareholders at the prescribed rates:
For Resident shareholders, taxes shall
be deducted at source under Section 194 of the Act, as follows:
| Valid PAN of shareholder available with the Company | 10% or as notified by the Government of India |
| Shareholders without PAN/ invalid PAN with the Company | 20% or as notified by the Government of India |
| Shareholder covered under section 206AB as per utility prescribed by CBDT | 20% |
However, no tax shall be deducted on the dividend
payable to a resident individual shareholder if the total dividend to be received by them during the financial year 2022-23 does
not exceed Rs. 5,000/- and also in cases where shareholder provide valid Form 15G (applicable to any person other than HUF or
a Company or a firm)/ Form 15H (applicable to an individual who is 60 years and older) subject to conditions specified in the
Act. Shareholders may also submit any other document as prescribed under the Act to claim a lower/ nil withholding tax. PAN is
mandatory for shareholders providing valid Form 15G/ Form 15H or any other documents as mentioned above. The formats of Form 15G/
Form 15H are also available on the website of our Registrar and Transfer Agent (RTA), Bigshare Services Private Limited at www.bigshareonline.com.
For Resident Mutual funds and Insurance
Company shareholders:
In order to provide exemption from TDS on the
dividend payable to a Mutual Fund specified under Clause (23D) of Section 10 of the Act or an Insurance Company as specified in
Section 194 of the Act, shareholders should submit the below document along with exemption notification, if any, as per the relevant
provisions of the Act:
Declaration for exemption under Circular
In case of any shareholder whose income is
subject to lower rate of TDS, or is exempt under the Act, such shareholder is requested to submit the following documents, if eligible
as per the relevant provisions of the Act, duly signed by the authorized signatory:
For Non-Resident shareholders, taxes
are required to be withheld in accordance with the provisions of Section 195 and other applicable sections of the Act, at the rates
in force. The withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) or as notified by the Government
of India on the amount of dividend payable. However, as per Section 90 of the Act, non-resident shareholders may have an option
to be governed by the provisions of the Double Tax Avoidance Treaty (DTAA) between India and the country of tax residence of the
shareholder, if they are more beneficial to them. In order to avail the benefits of DTAA, the non-resident shareholders will have
to provide the following:
The Company is not obligated to apply the beneficial
DTAA rates at the time of tax deduction/ withholding on dividend amounts. Application of beneficial DTAA rate shall depend upon
the completeness and satisfactory review by the Company, of the documents submitted by non-resident shareholder.
Declaration by shareholders under Rule 37BA
(2) of the Income Tax Rules, 1962:
In order to enable the Company to provide credit
of tax deducted at source to beneficial shareholders in whose hands dividend paid by Company is assessable, shareholders are requested
to provide declaration in format as prescribed under Rule 37BA(2) of the Income Tax Rules, 1962 - Annexure VIII
Section 206AB of the Act
Rate of TDS @10% under Section 194 of the Act
is subject to provisions of Section 206AB of the Act (effective from July 1, 2021) which introduces special provisions for TDS
in respect of non-filers of income-tax return. As provided in Section 206AB, tax is required to be deducted at higher of following
rates in case of payments to specified persons:
Where Sections 206AA and 206AB are applicable
i.e. the specified person has not submitted the PAN as well as not filed the tax return, the tax shall be deducted at the higher
of the two rates prescribed in these two sections.
As per Central Board of Direct Taxes vide Circular
No. 11 of 2021 dated 21st June 2021, for determining TDS rate on Dividend, the Company will be using functionality of the Income-tax
department to determine the applicability of Section 206AB of the Act. Rate of 20% will be applied for shareholders who are determined
as specified person in Income tax department portal.
The non-resident who does not have the permanent
establishment is excluded from the scope of a specified person.
For all shareholders:
Shareholders are requested to update tax residential
status, permanent account number (PAN), registered email address, mobile numbers and other details with their depository participants,
in case the shares are held in dematerialized form. Shareholder holding shares in physical mode, are requested to furnish details
to the Company's Registrar and Share Transfer Agent (RTA).
The formats of above declarations are available
on the website of RTA at www.bigshareonline.com. The aforementioned documents (duly completed and signed) are required
to be submitted to the Company's RTA at DRLtaxexemption@bigshareonline.com.
In order to enable us to determine the appropriate
tax rate at which tax has to be deducted at source under the respective provisions of the Act, we request you to provide the above-mentioned
details and documents as applicable to you on or before 11.59 pm (IST) on Monday, June 27, 2022. The Company will arrange
to e-mail a soft copy of TDS certificate at the shareholders registered e-mail ID in due course, post payment of the said final
dividend/ furnishing of TDS returns for the second quarter of financial year 2022-23, with the authorities.
Incomplete and/or unsigned forms and declarations
will not be considered by the Company. No communication on the tax determination/ deduction shall be considered post 11.59 pm (IST)
All the documents submitted by the shareholders
will be verified by the Company and the Company will consider the same while deducting the appropriate taxes if they are in accordance
with the provisions of the Act.
Shareholders may note that in case the tax
on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/ documents, option is available
to the shareholder to file the return of income as per the Act, and claim an appropriate refund, if eligible.
All communications/queries in this respect
should be addressed to our RTA, Bigshare Services Private Limited at their e-mail ID: DRLtaxexemption@bigshareonline.com.
Further, shareholders who have not registered/
updated their email address are requested to register/ update the same on https://www.drreddys.com/investors/investor-services/shareholder-information/
or with their depository participant or send their consent at shares@drreddys.com along with their folio no./
DP ID, Client ID and valid e-mail address for registration/ updation.
Shareholders are further requested to complete
necessary formalities to link their bank accounts to their demat accounts to enable the Company to make timely credit of dividend
in respective bank account.
Disclaimer: Above communication on TDS only