Communication to Shareholders Intimation of Tax deduction at Source on Dividend for FY 2023 24

GENERAL INSURANCE CORPORATION OF INDIA

(A Government of India Company)

CIN: L67200MH1972GOI016133 IRDAI REG. NO. 112

Regd. Office: 'Suraksha', 170, J. Tata Road, Churchgate, Mumbai-400020

Tel: +91-22-2286 7000 Fax: +91-22-2288 4010

Website:www.gicre.inEmail:investors.gic@gicre.in

URGENT & IMPORTANT

Date: 28/08/2024

Ref: Folio / DP Id & Client Id No:

Name of the Shareholder:

Dear Shareholder(s)

Subject: Communication in respect of Tax Deduction at Source (TDS) on dividend for financial year 2023-24

We wish to inform you that the Board of Directors of your Corporation at their meeting held on 28th May 2024 have recommended dividend of Rs. 10 per equity share having nominal value of Rs. 5/- each, for the financial year ended 31st March 2024, subject to approval of the shareholders at the ensuing 52nd Annual General Meeting ("AGM") of the Corporation.

The record date for the purpose of final dividend would be Friday, September 6, 2024. The dividend would be paid to the eligible shareholders within a period of 30 days from the date of ensuing AGM, electronically, through various online modes to those members who have updated their bank account details or through any other permissible mode.

As you may be aware, in terms of the provisions of the Income Tax Act, 1961, ("the Act") as amended by the Finance Act, 2020, with effect from 1st April 2020, dividend paid or distributed by a Company shall be taxable in the hands of the shareholders. The Corporation shall, therefore, be required to deduct tax at source (TDS) at the time of payment of dividend at the applicable rates.

(i) 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. However, in case of individuals, TDS would not apply if the aggregate of total dividend distributed to them by the Corporation during FY 2024-25 does not exceed Rs. 5,000.

Tax at source will not be deducted in cases where a shareholder provides Form 15G (applicable to individuals upto the age of 60 years) / Form 15H (applicable to individual above the age of 60 years), provided that the eligibility conditions are being met. Blank Form 15G and 15H can also be downloaded from the link given at the end of this communication.

Needless to mention, the Permanent Account Number (PAN) will be mandatorily required.

• Non-linkageof PAN with Aadhaar: As per Section 139AA of the Income Tax Act, every person who has been allotted a PAN and who is eligible to obtain Aadhaar, shall be required to link the PAN with Aadhaar. In case of failure to comply with this, the PAN allotted shall be deemed to be invalid/inoperative and tax shall be deducted at the rate of 20% as per the provisions of Section 206AA of the Act.

In order to provide exemption from withholding of tax, the following organisations must provide a self-declaration as listed below:

• Insurance companies: Documentary evidence that the provisions of Section 194 of the Act are not applicable to them. Copy of IRDA registration certificate (Self- attested), a self-declaration that they are beneficial owners of shares held and PAN (self-attested); Blank self-declaration can also be downloaded from the link given at the end of this communication.
• Mutual Funds: A self- declaration that they are governed by the provisions of Section 10(23D) of the Act and is covered under Section 196 of the Act along with copy of SEBI registration certificate and PAN (self-attested); Blank self-declaration can also be downloaded from the link given at the end of this communication.
• Alternative Investment Fund (AIF) established in India: A self-declarationthat 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 SEBI registration certificate and PAN (self-attested)should be provided.
• New Pension System Trust: A self-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 documents and PAN (self-attested);
• Corporation established by or under a Central Act

1. Self-Declarationstating that the shareholder is Corporation established by or under a Central Act which is, under any law for the time being in force exempt from income- tax on its income (giving the details of Act or Law under which it is exempt) - is covered by Section 196(iii) of the Act;

1. Self-attestedcopy of PAN Card; and

• 1. Self-attestedcopy of certificate of incorporation.
• Order under Section 197 of the Act: Lower/ NIL TDS on submission of self-attested copy of the certificate issued under Section 197 of the Income Tax Act, 1961.

1. • IFSC Units of a Finance Company, Finance unit and Broker Dealer opting to claim deduction u/s 80LA(1A)/80LA(2): Self-attestedcopy of PAN and Self-declarationin Form 1 in accordance with the notification no. 28/2024 dated 07th March 2023 issued by CBDT. Blank self-declarationcan also be downloaded from the link given at the end of this communication.
   • Other Resident Non Individual Shareholders: Shareholders who are exempted from the provisions of TDS as per Section 194 of the Act and/ or who are covered u/s 196 of the Act and/or any other provisions of the Act (e.g. entities as provided in CBDT Circular No.18 of 2017), shall also not be subjected to any TDS, provided they submit a self-declarationalong with the documentary evidence (e.g. relevant copy of registration, notification, order, etc.) in support of it being entitled to the exemption available and an attested copy of the PAN.
2. For Non-resident shareholders:

Tax is required to be withheld in accordance with the provisions of Section 195 and 196D of the Act at applicable rates in force. As per the relevant provisions of the Act, the tax shall be withheld @20% (plus applicable surcharge and cess) on the amount of dividend payable. However, as per Section 90 of the Act, a non-resident shareholder including FII and FPI have the option to be governed by the provisions of the Double Tax Avoidance Agreement ("DTAA") between India and the country of tax residence of the shareholder, if they are more beneficial to the shareholder. For this purpose, i.e. to avail the Tax Treaty benefits, the non-resident shareholder will have to provide the following:

1. Self-attestedcopy of Permanent Account Number (PAN Card), if any, allotted by the Indian income tax authorities;
2. Self-attestedcopy of Tax Residency Certificate (TRC) obtained from the tax authorities of the country of which the shareholder is resident;
3. E-filedForm 10F, if all the details required in this form are not mentioned in the TRC;
4. Self-declarationby the non-resident shareholder of having no permanent establishment in India in accordance with the applicable Tax Treaty;
5. Self-declarationof beneficial ownership by the non-resident shareholder.

The documents referred to in point nos. (iii) to (v) can be downloaded from the link given at the end of this communication.

The Corporation 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 Corporation, of the documents submitted by Non-Resident shareholder.

• Order under Section 195(3) /197 of the Act: Lower/ NIL TDS on submission of self- attested copy of the certificate issued under Section 195(3) /197 of the Income Tax Act, 1961.

To enable us to determine the appropriate TDS / withholding tax rate applicable, we request you to provide the above details and documents not later than, Thursday,

12th September 2024. Dividend will be paid after deducting the TDS as under:

• NIL for resident shareholders receiving dividend upto Rs. 5,000 or in case Form 15G / Form 15H (as applicable) along with self-attested copy of the PAN is submitted
• 10% for resident shareholders receiving dividend in excess of Rs. 5,000 in case PAN is provided/available
• 20% for resident shareholders, if PAN is not provided / not available or if Aadhaar is not linked or is classified as Specified Person under Section 206AB then the higher rate as per the Act (i.e., 20%) would apply
• Tax will be assessed on the basis of documents submitted by the non-resident shareholders
• 20% plus applicable surcharge and cess for non-resident shareholders in case the aforementioned documents are not submitted
• Lower/ NIL TDS on submission of self-attested copy of the certificate issued under Section 197 of the Income Tax Act, 1961
• Shareholders holding shares under multiple accounts under different status/ category (e.g., Resident and Non-Resident) and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.

For all Shareholders:

Kindly note that the aforementioned documents should be uploaded latest by 5:00 PM, 12th September, 2024 on the website of the KFin Technologies Limited, the Registrar and Transfer Agent ("KFintech") at https://ris.kfintech.com/form15/or emailed to einward.ris@kfintech.com. You can also email the same to investors.gic@gicre.in. No communication on the tax determination / deduction shall be entertained after Thursday, 12th September 2024.

Documents received by Post or from registered email id will only be accepted. In case of joint Shareholders, first named shareholder in the Share Certificate / Demat Account is required to furnish the requisite documents for claiming any applicable beneficial tax rate.

For giving TDS credit to another person as per provision clause (i) of sub-rule (2) of Rule 37BA of the Income Tax Rules, 1962, Shareholders are requested to provide Declaration along with a copy of the PAN card of the person to whom credit is to be given by 5:00 PM, September 12, 2024. Blank declaration can also be downloaded from the link given at the end of this communication.

In the absence of receipt of the above-mentioned documents/details or completeness of the documents, the Corporation shall deduct the tax as per the provisions of Income Tax Act. No claim shall be entertained by the Corporation for such taxes deducted.

General Notes:

• Bank details update: we request you to update your bank account details with your Depository Participant for enabling the Corporation to make timely credit of dividends in the respective bank accounts.
• Shareholders are requested to update their PAN, signature, mobile number, email, address, residential status, category and other details with their relevant depository participants (DP) where you have been maintaining demat account. The Corporation will continue to send communications to shareholders (including AGM Notice, annual reports etc.) to their respective registered email.
• SEBI vide its circulars has mandated that holders of physical securities, whose folio(s) are not updated with any of the KYC details viz., PAN, nomination, contact

details, mobile number, bank account details or specimen signature, shall be eligible for payment of dividend in respect of such folios, only through electronic mode with effect from 1 April, 2024. Please refer SEBI FAQs by accessing the link: https://www.sebi.gov.in/sebi_data/faqfiles/jan-2024/1704433843359.pdf(FAQ No 38 & 39). Accordingly, dividend payable to members holding shares in physical mode, whose KYC details are not updated shall be withheld by the Corporation. Shareholders are therefore advised to update their KYC details on priority, if not done already.

• Shareholders, whose 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/iec/foportal/-

• If the tax is deducted at a higher rate in absence of receipt of, or satisfactory completeness of the aforementioned details/documents by the Corporation before dividend processing period, option is available with you to file the return of income as per the Act and claim an appropriate refund, if eligible. No claim shall, however, lie against the Corporation for such taxes deducted.
• All communications/queries in this respect should be addressed to RTA at its email addresseinward.ris@kfintech.com. Alternatively, you may contact the Corporation on the above address.
  Thanking you,
  For General Insurance Corporation of India
  Suresh Savaliya Company Secretary
  Click hereto download 15G Click hereto download 15H Click hereto download 10F

Click hereto download - Self declaration

Click hereto download Self Declaration (Insurance Company) Click hereto download Self Declaration (Mutual Fund)

Click hereto download Form 1

Click hereto download Declaration under Section 199 read with Rule 37BA

Disclaimer: The information set out herein above is included for general information purposes only and does not constitute legal or tax advice. Since the tax consequences are dependent on facts and circumstances of each case, the investors are advised to consult their own tax consultant with respect to specific tax implications arising out of receipt of dividend.

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1FORM NO. 15H

[See section 197A(1C) and rule 29C]

Declaration under section 197A(1C) to be made by an individual who is of the age of sixty

years or more claiming certain incomes without deduction of tax.

PART I

Total No. of Form No.15H filed Aggregate amount of income for which Form No.15H filed

18. Details of income for which the declaration is filed

............................................................

Signature of the Declarant

________________________

1. Substituted by the IT (Fourteenth Amdt.) Rules, 2015, w.e.f. 1-10-2015. Earlier Form No. 15H was amended by the IT (Fifth Amdt.) Rules, 1982, w.e.f. 21-6-1982, IT (Fifth Amdt.) Rules, 1989, w.r.e.f. 1-4-1988, IT (Fourteenth Amdt.) Rules, 1990, w.e.f. 20-11-1990, IT (Twelfth Amdt.) Rules, 1992, w.e.f. 1-6-1992, IT (Seventh Amdt.) Rules, 1995, w.e.f. 1-7-1995, IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999, IT (Twelfth Amdt.) Rules, 2002, w.e.f. 21-6-2002, IT (Eighth Amdt.) Rules, 2003, w.e.f. 9-6-2003, IT (Fourteenth Amdt.) Rules, 2003, w.e.f. 1-8-2003 and IT (Second Amdt.) Rules, 2013, w.e.f. 19-2-2013.