Gujarat Narmada Valley Fertilizers & Chemicals Ltd.
CIN: L24110GJ1976PLC002903
‘Narmada House’, Corporate Building, P.O. Narmadanagar – 392 015.
Dist. Bharuch, Gujarat, India E-mail: investor@gnfc.in Web site: www.gnfc.in

Dear Shareholder(s),

Communication on Tax Deduction at Source (TDS) on Dividend for the F.Y. 2024-25.

Trust you and your family are safe and in good health.

 

We are pleased to inform you that the Board of Directors of your Company at their Meeting held on May 23, 2025, have recommended a dividend of ₹18/– (@180%) per equity share, having face value of ₹10/- each, fully paid up, for the financial year ended on March 31, 2025.

The dividend, as recommended by the Board of Directors, if approved at the ensuing 49th Annual General Meeting (AGM), will be paid to the shareholders holding equity shares of the Company as at the book closure dates. The book closure dates will be announced in due course.

In accordance with the provisions of the Income Tax Act, 1961 (the Act), as amended by the Finance Act, 2020 dividends paid or distributed by a Company on or after April 1, 2020 shall be taxable in the hands of the Shareholders. The Company shall therefore be required to deduct tax at source at the time of payment of the said dividend, at prescribed rates including applicable Surcharge and Cess, as notified from time to time and applicable.

This communication provides details of applicable Tax Deduction at Source (TDS) provisions, under the Act and the Rules, based on the Residential Status of the Shareholders. TDS rate may vary depending up on the Residential Status of the Shareholders and the documents submitted to the Company in accordance with the provisions of the Act and the Rules, as amended.

The shareholders are requested to ensure that their details with reference to valid Income Tax Permanent Account Number (PAN), Residential Status as per the Act and the Rules i.e. Resident or Non-Resident, Category of their Account as per the PAN, Email / Postal Address, Bank Account Details for payment of dividend etc. are complete / updated, as applicable. In case of shares held in dematerialised form / mode, the above mentioned details need to be updated with their respective Depository Participant (DP), with whom the Demat Account is maintained. In case of shares held in physical form / mode, the above mentioned details need to be updated with KFin Technologies Limited, the Company’s Registrar & Share Transfer Agent (“RTA / KFin”).

A. 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 / the Rules. However, in case of individuals, TDS would not apply if the aggregate of total dividend paid / payable to them by the Company during the financial year does not exceed ₹10,000/- (Rupees Ten Thousand only). Tax deduction will be subject to the below requirements:

Where, the Permanent Account Number (PAN) is available and such PAN is valid / operative as per the provisions of the Act.

As per the applicable provisions of Section 194 of the Act, tax will be deducted at source from the dividend amount at rate of 10% where Shareholders have registered their valid PAN with the RTA of the Company viz. KFin Technologies Limited and at rate of 20% for cases where the shareholders do not have PAN / have not registered their valid PAN with  RTA – KFin Technologies Limited. Further, the shareholders are also required to ensure that their Aadhar number is linked to their PAN. As per the proviso to Section 139AA(2) of the Act, in case of failure to link Aadhar number with PAN, the PAN shall be treated as invalid and TDS will be deducted accordingly i.e. at applicable higher rate.

Form 15G / 15H in the case of eligible Resident Shareholders

Tax at source will not be deducted in cases where shareholder provides valid and fully filled Form 15G (applicable to individuals upto 60 years age) / Form 15H (applicable to individuals above 60 years age), provided that the eligibility conditions are being met. Blank Form 15G and 15H can be downloaded from the link given as below.

Click Here to download Form 15G enclosed as Annexure 1.
Click Here to download Form 15H enclosed as Annexure 2.

Nil / lower tax will be deducted on dividend payable to the following categories of resident Shareholders, on submission of self-declaration:

Click Here to download “Declaration” enclosed as Annexure 3

i. Insurance Companies: Self attested copy of IRDA registration certificate / documents showing that provisions of Section 194 of the Act are not applicable to them along with a declaration that they are beneficial owner of the shares and PAN Card should be provided.

ii. Mutual Funds:Declaration that they are governed by the provisions of Section 10(23D) of the Act along with copy of registration certificate / documents and PAN Card (self-attested) should be provided;

iii. Alternative Investment Fund (AIF) established in India: Declaration that its income is exempt under Section 10(23FBA) of the Act and they are established as Category – I or Category – II AIF under the SEBI Regulations. Copy of registration certificate / documents and PAN Card (self-attested) should be provided;

iv. New Pension System Trust: Declaration that they are governed by the provisions of Section 10(44) [sub-section 1E to Section 197A] of the Act along with copy of registration certificate / documents and PAN Card (self-attested) should be provided;

v. Entities exempt under Section 10 of the Act: In case of resident non-individual Shareholders, if the income is exempt under the Act, , the authorized signatory shall submit self-declaration duly signed with stamp affixed for the purpose of claiming exemption from tax deduction at source;

vi. Corporation established by or under a Central Government Act:

  1. Self-Declaration stating that the Shareholder is a Corporation established by or under the Central Government Act which is, under any law for the time being in force, exempt from income-tax on its income (giving the details of the Act or Law under which it is exempt) – is covered by Section 196(iii) of the Act; and
    • Dividend is payable in respect of Securities or Shares owned by the Corporation; or
    • in which Corporation has full beneficial interest in Shares
  2. Self-attested copy of PAN Card;
  3. Self-attested copy of Certificate of Incorporation.

vii. Where Shareholders furnishes lower / nil withholding tax certificates under Section 197, TDS will be deducted as per the rates prescribed in such Certificate

B. For Non-Resident Shareholders:

  1. Tax is required to be withheld in accordance with the provisions of Section 195 of the Act at the applicable rates in force. As per applicable provisions of the Act, tax shall be withheld @ 20% (plus surcharge and cess, as applicable) on the amount of dividend payable.
  2. As per Section 90 of the Act, a non-resident Shareholder has an option to be governed by the provisions of the Double Taxation Avoidance Agreement (DTAA) between India and the country of tax residence of the Shareholder, if such DTAA provisions are more beneficial to such Shareholder. To avail the DTAA benefit, non-resident Shareholder will have to provide the following documents:

    Documents should be legible and in PDF / JPEG formats and the password protected documents should be avoided. In case documents are not clearly visible or there are any password issues, then the documents will be ignored. The Company will apply its sole discretion and is not obligated to apply the beneficial DTAA rates for tax deduction on dividend payable to Shareholders. Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review, by the Company, of the documents submitted by the Non-Resident Shareholders.

  3. Notwithstanding the above, tax shall be deducted at source / withholding tax @ 20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors (“FII”) and Foreign Portfolio Investors (“FPI”). Such TDS/ withholding tax rate shall not be reduced on account of the application of the lower DTAA rate, if any.
  4. Where a shareholder (other than FII and FPI as covered in Para B(3) above) of the Act furnishes valid lower / nil withholding tax certificate under Section 197 of the Act, TDS will be deducted as per the rates prescribed in such certificate.

For all Shareholders:

Shareholders are requested to upload aforementioned documents latest by 5.00 PM, 31-07-2025 on the website of the RTA at https://ris.kfintech.com/form15/ and also email them at einward.ris@kfintech.com in order to enable the Company to determine and deduct appropriate TDS / withholding tax rate.

No communication on the tax determination / deduction shall be entertained after 5.00 PM, 31-07-2025.

Documents received by post or from registered email Id will only be accepted. In case of joint shareholders, first name of shareholder in the share certificate / demat account is required to furnish the requisite documents for claiming any applicable beneficial tax rate.

Shareholders may note that in case the tax on the said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents, option is available to shareholders to file Return of Income as per the Act and claim for a credit / appropriate refund, if eligible. No claim shall lie against the Company for such taxes deducted from the dividend payable. 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 Company 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.

In the event of any income-tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of the information provided by the shareholder/s, such shareholder/s will be responsible, accountable and liable to indemnify the Company for all expenses, charges, costs, damages and losses forthwith on demand without any demure and also to provide the Company all information/ documents and co-operation in any assessment/defense / appellate proceedings before the Tax / Government authorities.

Note: Shareholders holding shares under multiple accounts under different status / category and single PAN, shall note that, higher of the tax as applicable to the status / category in which the shares held under PAN will be considered on their entire holding in different accounts.

UPDATION OF INCOME TAX PAN, BANK ACCOUNT DETAILS, SIGNATURE, MOBILE NUMBER, EMAIL ID, ADDRESS, NOMINATION AND OTHER DETAILS :

Shareholders are requested to update their PAN, Bank Account details, Signature, Mobile Number, E-mail Id, Residential Address, Residential status, Category, Nomination and other details with their relevant Depository Participants (DPs), if the shareholding is in demat form.

In case, shares are held in physical form, shareholders will have to submit Form ISR-1,         ISR-2, ISR-3 or SH-13, SH–14  to KFin Technologies Limited,  the Registrar and Share Transfer Agents of the Company at KFin Technologies Limited, Selenimum Tower B, Plot Nos. 31-32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad, Telangana 500032.

The shareholders are requested to go through the web link  https://www.gnfc.in/useful-forms/  to download the Forms.

The company is obligated to deduct the applicable tax at Source and deposit with the Govt., based on the records made available by National Securities Depository Limited or Central Depository Services (India) Limited (collectively referred to as ‘the Depositories’) in case of shares held in demat mode and by the RTA of the Company in case of shares held in physical mode and that no request will be entertained for revision of TDS at any later stage.

Thanking you,

Yours faithfully,

For  Gujarat Narmada Valley Fertilizers & Chemicals Limited

 

Sd/-

Rajesh Pillai
Company Secretary

Disclaimer : The information set out herein above is included for general information purposes only and does not constitute legal or tax advice. Tax consequences depend on the facts and circumstances of each case. The investors are advised to consult their tax consultant to know and understand tax implications in respect of dividend receivable, depending on their specific residential status under the Income Tax Act and the Rules, as amended. 

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