Company Disclosure: Tax Deduction on Dividend Procedures

Key Communication Details

  • The company has sent email communications to all shareholders whose email IDs are registered with the Company, Registrar and Transfer Agent (RTA), or Depositories
  • The communication outlines the process for applicability of tax deduction at source and formalities to be complied with by shareholders
  • This information is also available on the company's website at https://benareshotelslimited.com/shareholder-information/agmegm/fy-25-26

Form No. 121 Requirements

The disclosure includes the complete Form No. 121 as prescribed under rule 211 for declaration under section 393(6) for receipt of certain incomes without deduction of tax:

Part A - Declarant Information:

  • Requires complete personal details including name, address, PAN, status, residential status
  • Specific requirement for resident individuals aged 60 years or more
  • Contact information including email and phone number
  • Tax year specification (2026-27)
  • Nature of income (dividend from domestic company)
  • Estimated income declaration
  • Details of previous Form No. 121 filings during the tax year
  • Estimated total income calculation
  • ITR filing history for previous two tax years

Declaration Requirements:

  • Declarant must confirm that information is correct and complete
  • Income must not be includible in any other person's total income
  • Tax on estimated total income must be nil
  • Income must not exceed maximum amount not chargeable to tax (except for seniors)
  • False declaration may lead to prosecution/penalty under the Act

Part B - Company Verification:

  • Requires company PAN, contact information, and tax year details
  • Verification of declarant information including PAN, unique ID, date of birth/incorporation
  • Recording of estimated income and total income figures
  • Declaration receipt date recording
  • Certification by authorized company representative

Additional Declaration Forms Provided

The disclosure includes multiple declaration templates for different shareholder categories:

1. Category and Beneficial Ownership Declaration:

  • Requires shareholder confirmation of Indian tax residency for April 2026 - March 2027
  • Multiple entity categories with specific exemption criteria:
  • Insurance Companies (beneficial owners with PAN)
  • Mutual Funds (exempt under Section 11, Schedule VII)
  • Alternative Investment Funds (Category I/II AIFs, exempt under Section 11)
  • Recognized Provident/Superannuation/Gratuity Funds (exempt under Section 11)
  • New Pension System Trust (exempt under Section 11, Schedule VII)
  • Business Trusts (defined under section 2(21), exempt under Section 11)
  • Other exempt entities with supporting documentation
  • Indemnification clause for any penal consequences

2. Stock Broker/Intermediary Declaration:

  • Certification for TDS credit under Rule 203 of Income Tax Rules, 2026
  • Requires PAN, number of shares held, gross dividend amount, TDS amount
  • Declaration that shares are held on behalf of beneficial shareholders
  • Detailed table for beneficial shareholder information including:
  • Name, address, PAN
  • Number of shares as of record date
  • TDS credit allocation
  • Indemnification for any future tax liability

3. Beneficial Shareholder Declaration:

  • Request for TDS credit from stock brokers/intermediaries
  • Similar information requirements as broker declaration

4. Foreign Shareholder DTAA Declaration:

  • Comprehensive certification for non-resident shareholders
  • Requirements include:
  • Complete shareholder identification details
  • Tax residency confirmation with country specification
  • DTAA benefit eligibility declaration
  • Beneficial ownership confirmation
  • Control and discretion over dividend utilization
  • Permanent Establishment status in India
  • Place of effective management outside India
  • Anti-avoidance rule compliance declaration
  • Valid Tax Residency Certificate submission
  • Additional documentation undertaking
  • Indemnification for any liability arising from reliance on declarations

Procedural Notes

  • All declarations require proper documentation including self-attested PAN cards, registration certificates, and supporting evidence
  • The company will rely on these declarations for appropriate TDS deduction
  • Shareholders must ensure accuracy of information to avoid prosecution under section 482
  • The procedures apply specifically to dividend income from Benares Hotels Limited

Website Accessibility

All forms and communication are available on the company website at https://benareshotelslimited.com/shareholder-information/agmegm/fy-25-26 for shareholder access and compliance.