Tax Exemption Forms Registration
Please note pursuant to the Income-tax Act, 1961, as amended by the Finance Act, 2020, dividends paid or distributed by a Company after 1st April 2020 shall be taxable in the hands of the Shareholders. Your Company shall therefore be required to deduct tax at source at the time of making the payment of the said Dividend payable. However, no tax or reduced tax shall be deducted on the Dividend payable by the company in cases the shareholder provides Form 15G (applicable to any Resident Individual other than a Company or a Firm) / Form 15H (applicable to an Resident Individuals above the age of 60 years) / Form 10F (applicable to Non-Residents), provided that the eligibility conditions are being met. Needless to say, Permanent Account Number (PAN) is mandatory for category of Forms.
Please note pursuant to the amendment to Income Tax Act 1961 through The Finance Act 2023, interest paid by a company on its listed debentures / bonds is taxable in the hands of the bond holders in both physical and electronic modes. Your company therefore is required to deduct tax at source at the time making the payment of the said interest. However, no tax or reduced tax shall be deducted on the interest payable by the company in cases the bond holder provides Form 15G (applicable to any Resident Individual other than a Company or a Firm) / Form 15H (applicable to an Resident Individuals above the age of 60 years) / Form 10F (applicable to Non-Residents) or any other exemption form as per the category of investor provided that the eligibility conditions are being met. Needless to say, Permanent Account Number (PAN) is mandatory for all categories of Forms. The forms need to be uploaded atleast 2 working days prior to any record date for applicability.