Sundram Fasteners Limited

CIN: L35999TN1962PLC004943

Registered Office: 98-A, VII Floor, Dr. Radhakrishnan Salai,Mylapore,

Chennai - 600 004

Phone: +91 - 44 - 28478500 | Fax: +91 - 44 - 28478510

E-mail: investorshelpdesk@ sfl.co.in | www.sundram.com

Dear Shareholder

DPID-CLID/Folio No. :

We wish to inform you that the Board of Directors at their meeting held on November 8, 2022 has approved payment of interim dividend @ Rs 3.57 per share of Re 1/- each for the financial year ending March 31, 2023 and a special dividend @ Rs. 2.00 per share of Re. 1/- each to commemorate the 60th year of incorporation of the Company.

The Interim and the Special Dividend approved by the Board of Directors will be paid on November 30, 2022 to those members whose names appear:

  1. As members on the Register of Members of the Company as on November 18, 2022 after giving effect to all valid transmission or transposition requests lodged with the Company for the shares held in physical form up to the closing hours of business on November 18, 2022.
  2. As beneficial owners as per the list to be furnished by NSDL/CDSL as at the closing hours of business on November 18, 2022.

As you may be aware, as per the Income-tax Act, 1961 (Act), as amended by the Finance Act, 2020, dividends paid or distributed by the Company after April 1, 2020, shall be taxable in the hands of the shareholders and the Company shall be required to deduct tax at source (TDS) at the prescribed rates from the dividend to be paid to shareholders exceeding Rs 5000/-(Rupees Five Thousand). The TDS rate would vary depending on the residential status of the shareholder and the documents submitted by them and accepted by the Company. Accordingly, the Interim and the Special Dividend will be paid after deducting TDS as explained herein.

SECTION A: FOR ALL SHAREHOLDERS - UPDATION OF DETAILS, AS APPLICABLE

It may be noted that in case you had already registered the following details with the Company/RTA, the details as available with the Company in the Register of Members/Register of Beneficial Ownership maintained by the Depositories will be relied upon by the Company/RTA, for the purpose of complying with the applicable TDS provisions:

  1. Valid Permanent Account Number (PAN).
  2. Residential status as per the Act i.e. Resident or Non-Resident for FY 2022-23.
  3. Category of the Shareholder viz. Mutual Fund, Insurance Company, Alternate Investment Fund (AIF) Category I and II, AIF Category III, Government (Central/State Government), Foreign Portfolio Investor (FPI)/Foreign Institutional Investor (FII): Foreign Company, FPI/FII: Others (being Individual, Firm, Trust, Artificial Juridical Person, etc.), Individual, Hindu Undivided Family (HUF), Firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI) or Artificial Juridical Person, Trust, Domestic Company, Foreign Company, etc.
  4. Email Address.
  5. Residential Address

In case, you wish to update the above-mentioned details, you are requested to submit the details by using the following link and by uploading documents by e-signing it.

https://www.integratedindia.in/KYCRegistration/KYC_EmailMobileRegistration.aspx

SECTION B: TDS PROVISIONS AND DOCUMENTS REQUIRED, AS APPLICABLE FOR RELEVANT CATEGORY OF SHAREHOLDERS

Shareholders are requested to take note of the TDS rates and document(s), if any, required to be submitted to the Company by November 22, 2022 for their respective category, in order to comply with the applicable TDS provisions.

  1. FOR RESIDENT SHAREHOLDERS:

Category of

Exemption applicability/Documentation requirement

shareholders

Mutual Funds

No TDS is required to be deducted as per Section 196(iv) of the Act, subject to

specified conditions. Self-attested copy of valid SEBI registration certificate needs to

be submitted.

Insurance Companies

No TDS is required to be deducted as per Section 194 of the Act, subject to specified

conditions. Self-attested copy of valid IRDAI registration certificate needs to be

submitted.

Category I and II

No TDS is required to be deducted as per Section 197A (1F) of the Act, subject to

Alternative Investment

specified conditions. Self-attested copy of valid SEBI registration certificate needs to

Fund

be submitted.

Recognized Provident

No TDS is required to be deducted as per Circular No.18/2017, subject to specified

Fund

conditions. Self-attested copy of a valid order from Commissioner under Rule 3 of Part

A of Fourth Schedule to the Act, or self-attested valid documentary evidence (e.g.

relevant copy of registration, notification, order, etc.) in support of the provident fund

being established under a scheme framed under the Employees Provident Funds and

Miscellaneous Provisions Act, 1952 needs to be submitted.

Approved Superannuation

No TDS is required to be deducted as per Circular No.18/2017, subject to specified

Fund

conditions. Self-attested copy of a valid approval granted by the Commissioner under

Rule 2 of Part B of Fourth Schedule to the Act needs to be submitted.

Approved Gratuity Fund

No TDS is required to be deducted as per Circular No.18/2017, subject to specified

conditions. Self- attested copy of a valid approval granted by the Commissioner under

Rule 2 of Part C of Fourth Schedule to the Act needs to be submitted.

National Pension Scheme

No TDS is required to be deducted as per Section 197A (1E) of the Act.

Government

No TDS is required to be deducted as per Section 196(i) of the Act.

(Central/State)

Any other entity entitled

Valid self-attested documentary evidence (e.g. relevant copy of registration,

to exemption from TDS

notification, order, etc.) in support of the entity being entitled to TDS exemption

needs to be submitted.

Other resident

a. TDS is required to be deducted at the rate of 10% with effect from April 1, 2021

shareholder

under Section 194 of the Act.

b. No TDS is required to be deducted, if aggregate dividend distributed or likely to

be distributed during the financial year to an individual shareholder does not

exceed Rs. 5000/-.

c. No TDS is required to be deducted on furnishing of valid Form 15G (for

individuals, with no tax liability on total income and income not exceeding the

maximum amount which is not chargeable to tax) or Form 15H (for individuals

above the age of 60 years with no tax liability on the total income).

d. TDS is required to be deducted at the rate of 20% under Section 206AA of the

Act, if valid PAN of the shareholder is not available.

e. TDS is required to be deducted at the rate prescribed in the lower tax

withholding certificate issued under Section 197 of the Act, if such valid

certificate is provided.

II. FOR NON - RESIDENT SHAREHOLDERS:

Category of

Exemption Applicability/Documentation requirement

shareholders

Any entity entitled to

Valid self-attested documentary evidence (e.g. relevant copy of registration,

exemption from TDS

notification, order, etc. by Indian tax authorities) in support of the entity being

entitled to exemption from TDS is to be submitted.

FPI, FII and Other nonresident shareholder

  1. TDS is required to be deducted at the rate of 20% (plus applicable surcharge and cess) under Section 195 of the Act.
  2. Further, as per Section 90 of the Act the non-resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Treaty between India and the country of tax residence of the shareholder, if they are more beneficial to them. For this purpose, i.e. to avail Tax Treaty benefits, the non-resident shareholders will have to provide the following:
    1. Self-attestedcopy of the PAN allotted by the Indian Income Tax authorities;
    2. Self-attestedcopy of valid Tax Residency Certificate obtained from the tax authorities of the country of which the shareholder is a resident;
    3. Self-declarationin Form 10F e-filed in the Income Tax portal along with the acknowledgement for e-filing; and
    4. Self-declarationcertifying:
    • The shareholder is and will continue to remain a tax resident of the country of its residence during the Financial Year 2022-23;
    • The shareholder is eligible to claim the beneficial DTAA rate for the purposes of tax withholding on dividend declared by the Company;
    • The shareholder has no reason to believe that its claim for the benefits of the DTAA is impaired in any manner;
    • The shareholder is the ultimate beneficial owner of its shareholding in the Company and dividend receivable from the Company; and
    • The shareholder does not have a taxable presence or a permanent establishment in India during the Financial Year 2022-23.
  4. TDS is required to be deducted at the rate prescribed in valid lower tax withholding certificate issued under Section 197 of the Act, if such certificate is provided.
  1. Notes:
  1. All the above referred tax rates will be enhanced by surcharge and cess, wherever applicable.
  2. For all self-attested documents, Shareholders must mention on the document "certified true copy of the original". For all documents being uploaded by the Shareholder, the Shareholder undertakes to send the original document(s) on request by the Company.
  3. In case, the dividend income is assessable to tax in the hands of a person other than the registered Shareholder as on the Record Date, the registered shareholder is required to furnish a declaration containing the name, address, PAN of the person to whom TDS credit is to be given and reasons for giving credit to such person.
  4. Above communication on TDS sets out the provisions of law in a summary manner only and does not purport to be a complete analysis or listing of all potential tax consequences. Shareholders should consult with their own tax advisors for the tax provisions that may be applicable to them.
  1. We shall arrange to email the soft copy of the TDS certificate at your registered email ID in due course, post payment of the dividend.
  2. It may be further noted that in case the tax on dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents, there would still be an option available with the shareholder to file the return of income and claim an appropriate refund, if eligible. No claim shall lie against the Company for such taxes deducted.
  3. In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided / to be provided by the Shareholder(s), such Shareholder(s) will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings.
  4. Benefit under Rule 37BA:In case, the dividend income is assessable to tax in the hands of a person other than the registered Shareholder as on the Record Date, the registered shareholder is required to furnish a declaration containing the name, address, PAN of the person to whom TDS credit is to be given and reasons for giving credit to such person. In case where shares are held by Clearing Members / Intermediaries / Stockbrokers, and TDS is to be applied by the Company in the PAN of the beneficial Shareholders then intermediaries / stockbrokers or others and the beneficial Shareholders will have to provide a declaration. Format of declaration is available in the link provided below. This declaration should be submitted through the link provided below, within 3 days from the record date to the RTA. Kindly note that no declaration shall be accepted after Tuesday, November 22, 2022.
  5. TDS to be deducted at higher rate in case of non-filers of Income Tax Return
    "As per the provisions under Income Tax Act, 1961, a person shall be levied a higher TDS rate w.e.f. 1st July, 2021, if they have not filed Income Tax Returns for the immediately preceding year relevant to the year in which tax is required to be deducted for which the time limit of filing of return of income under section 139(1) of the Act has expired and aggregate TDS / TCS Credit of Rs.50,000/- or more in immediately preceding year (Section206AB)
    This Section requires the TDS to be deducted at higher of the following rates for not complying with the aboveprovision.
  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%
    In view of the above, Income Tax Department has facilitated a new functionality "Compliance Check for Section 206AB & 206CCA" to facilitate tax deductors / collectors to verify if a person is a "Specified Person" as per section 206AB & 206CCA. The Company will do a Compliance Check using your PAN and deduct tax at higher rate if it isfound that the above provisions are not complied with".

"Specified person" as defined u/s 206AB (3) is someone who has:

  1. not filed income tax return for previous year immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing of return of income under section 139(1) of the Act has expired; and
  2. The aggregate of TDS and TCS in whose case is Rs. 50,000 or more in that previous year.

Non-resident shareholders who do not have permanent establishment in India are excluded from the scope of a "specified person".

Kindly note that the aforementioned documents (Form 15G, Form 15H, Form 10F and self-declaration) are required to be submitted using the link provided below:

https://www.integratedindia.in/ExemptionFormSubmission.aspx

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Sundram Fasteners Ltd. published this content on 18 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2022 08:18:02 UTC.