Abbott India : Communication on Deduction of Tax at Source on Dividend – 2022-23

Abbott India Limited	Registered Office:	Tel: [phone]/2000
Godrej BKC, Plot C-68,"G"Block,	3, Corporate Park,	Fax : [phone]
15-16th Floor, Bandra-Kurla Complex,	Sion Trombay Road,	E-mail : [e-mail]
Near MCA Club, Bandra (E),	Mumbai - 400 071.India	Website : www.abbott.co.in
Mumbai - 400 051. India		CIN: L24239MH1944PLC007330

Subject: Abbott India Limited - Dividend for the financial year 2022-23 - Communication on Deduction of Tax at Source on Dividend

Dear Member,

We hope this e-mail finds you safe and in good health.

We are pleased to inform you that the Board of Directors at its Meeting held on May 19, 2023 recommended a final dividend of Rs. 180/- and special dividend of Rs. 145/- per equity share of Rs 10/- each for the financial year ended March 31, 2023 ("Dividend"), subject to approval of the Members at the ensuing Annual General Meeting to be held on August 9, 2023.

The Dividend, if approved by the Members, will be paid on or after August 16, 2023 to the Members whose names appear on the Register of Members and to the Beneficial Owners of the Shares as on July 21, 2023 ("Record date"), as per the details furnished by the Depositories for this purpose.

As per the Income Tax Act, 1961 (IT Act), dividends paid or distributed by companies 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 prescribed rates ("TDS") at the time of making the payment of the Dividend.

Also, please note that the TDS rate would vary depending on the residential status, category of the shareholder, compliant/non-compliant status in terms of Section 206AB of the IT Act (provisions given below) and is subject to submission of all the requisite declarations/documents to the Company. Detailed instruction regarding the same is given in the table below.

Updation of Details for payment of Dividend

You are requested to register/update your Permanent Account Number (PAN), Bank details, Email address, Mobile number, Residential address, Residential status in India (i.e., Resident or Non-Resident for FY 2023-24) with your Depository Participant (in case of electronic holding) or with the Company/Registrar and Share Transfer Agent (in case of physical holding) by July 21, 2023 along with the ISR Forms. Details available with the Company in the Register of Members/Register of Beneficial Ownership maintained by the Depositories will be relied upon by the Company, for the purpose of complying with the applicable TDS provisions.

Provisions related to TDS and documents required

You are requested to take note of the below stated TDS rates and document(s), if any, required to be submitted to the Company for your respective category on or before July 21, 2023 in order to comply with the applicable TDS provisions.

Resident Members

For Resident Individuals

• No tax shall be deducted on the dividend payable to resident individuals if the total dividend to be received during financial year 2023-24 does not exceed Rs 5,000/-. In the

For Resident Non-Individuals

absence of PAN, TDS will be deducted at higher rate @20% as per section 206AA of the Act, as may be applicable.

• TDS shall be deducted at the rate of 10% on the amount of dividend payable provided valid PAN is updated with the Depository Participant in case shares are held in dematerialized form; or Registrar and Transfer Agent ('RTA') in case shares are held in physical form and no exemption sought by Shareholder.
• No tax shall be deducted on the dividend payable to resident individuals if the Member has provided Form 15H (applicable to an Individual above the age of 60 years) or Form 15G (applicable to an individual who is less than 60 years), as per the attached formats, provided that all the required eligibility conditions are met.
• In case of Members who have provided a valid certificate issued under section 197 of the IT Act for lower/nil rate of deduction or an exemption certificate issued by income tax authority, the rates mentioned in such certificate shall be considered for deduction of tax at source.

Note: Registering the valid Permanent Account Number (PAN) for the registered Folio No./DP ID/Client ID is mandatory.

In absence of PAN/Valid PAN, tax will be deducted at a higher rate of 20%, as per Section 206AA of the IT Act, as may be applicable.

Kindly note that the above rates will be subject to provisions of section 206AB of the IT Act as mentioned above.

Download Forms:

Click Hereto download Form 15H Click Hereto download Form 15G

• TDS shall be deducted at the rate of 10% on the amount of dividend payable, provided valid PAN is updated with the Depository Participant in case shares are held in dematerialized form; or Registrar and Transfer Agent ('RTA') in case shares are held in physical form and no exemption sought by Shareholder.

• No tax shall be deducted at source on the dividend payable to certain resident non- individuals as per the provisions of the IT Act on submission of the documents mentioned below:

1. Insurance Companies/Business Trust specified in the second proviso to Section 194 of the IT Act: Self-declaration that the Insurance Company/Business Trust has full beneficial interest with respect to the shares owned by it along with an attested copy of the PAN of the insurance company and adequate documentary evidence (e.g., registration certificate), to the effect that no TDS is required as per provisions of section 194 of the IT Act.
2. Mutual Funds: Self-declaration along with certificate of registration under Section 10(23D) of the IT Act issued by the appropriate authority along with an attested copy of the PAN of the mutual fund.
3. Alternative Investment Fund: Self- declaration that its income is exempt under Section 10 (23FBA) of the IT Act and that the Fund is governed by the SEBI Regulations as Category I or Category II Alternative Investment Fund, along with an attested copy of the PAN and registration certificate.
4. Other Non-IndividualMembers: Documentary evidence along with an attested copy of the PAN for Members who are exempted from deduction of tax under Section 194 of the IT Act and categories covered under Section 196 of the IT Act.
5. Any other entity exempt from TDS under the provisions of section 197A of the IT Act (including those mentioned in Circular No. 18/2017 issued by CBDT): Self-declarationalong with adequate documentary evidence, substantiating the nature of the entity along with an attested copy of the PAN.

Further, in case of Members who have provided a valid certificate issued under Section 197 of the IT Act for lower/nil rate of deduction or an exemption certificate issued by income tax authority, the rates /exemptions mentioned in such certificate shall be considered for deduction of tax at source.

Note: Recording of the Valid Permanent Account Number (PAN) for the registered Folio No./DP ID/Client ID is mandatory. In absence of PAN/Valid PAN, tax will be deducted at a higher rate of 20%, as per Section 206AA of the IT Act.

Kindly note that the above rates will be subject to provisions of section 206AB of the IT Act as mentioned above.

Format for Declaration: To download, click on Annexure 1or Annexure 2as applicable

Non-Resident Members

Non-resident Members can avail the benefit of Double Tax Avoidance Agreement (Tax Treaty) between India and their country of residence on submission of the documents mentioned below:

1. Self-attestedcopy of the Permanent Account Number (PAN Card) allotted by the Indian Income Tax authorities.
2. Self-attestedcopy of Tax Residency Certificate (TRC) (of FY 2023-24 i.e., covering the period from April 1, 2023 to March 31, 2024) obtained from the tax authorities of the country of which the Member is resident.
3. To furnish Form 10F (if all the details required in this form are not mentioned in TRC):
4. 1. Online/ Electronically filed Form 10F: Applicable where PAN is available and/ or required to have PAN as per relevant provisions of Income Tax Act, 1961 read with Income Tax Rules, 1962 as per Notification No. 3/2022 dated July 16, 2022 and subsequent notification dated March 28, 2023 issued by CBDT;
   2. Self-declarationin Form 10F: Applicable where PAN is not available and not required to be obtained as per relevant provisions of Income Tax Act, 1961 read with Income Tax Rules, 1962 (refer Annexure 8 given below).
5. Self-declarationby the non-resident Member of having no Permanent Establishment/Fixed base or place of business/Business Connection/Place of Effective Management, in India in accordance with the applicable Tax Treaty (of FY 2023-24 or period covering FY 2023-24) along with Self-declaration of Beneficial ownership (of FY 2023-24 or period covering FY 2023-24) by the non-resident Member (Click on Annexure 3).
6. Any other documents prescribed under the IT Act for lower or nil withholding of tax, if applicable.

Kindly note that the Company is not obligated to apply beneficial tax treaty rates at the time of tax deduction/withholding on dividend amounts. Application of beneficial rate of tax treaty for the purpose of withholding taxes shall depend upon completeness and satisfactory review by the Company of the documents submitted by the non-resident Member.

In case of Non-resident Shareholders (except those who are tax residents of Notified Jurisdictional Area), TDS rate of 20% (plus applicable surcharge and cess) or TDS rate as per Tax Treaty, whichever is beneficial will be applied subject to submission of documents as mentioned above.

In case of Non-Resident Shareholders who are tax residents of Notified Jurisdictional Area as defined under section 94A (1) of the IT Act, TDS rate of 30% will be applicable.

In case of Non-Resident shareholders obtaining lower/nil tax deduction certificate issued by Income Tax Department under section 195 or section 197 of the IT Act, TDS will be applied as per the rate specified in lower/nil tax withholding certificate obtained from Income Tax Department.

In case of Non-resident Shareholders who are Alternative Investment Fund - Category III located in International Financial Services Centre, taxes shall be withheld at 10% plus applicable surcharge and cess in accordance with provisions of Section 196D of the IT Act. To download the Form, click on Annexure 4.

In case shareholders are covered under section 10(23FE) of the IT Act, no tax shall be deducted where the Shareholder submits copy of the notification issued by CBDT substantiating the applicability of section 10(23FE) of the IT Act issued by the Government of India along with self-declaration that the conditions specified in section 10(23FE) of the IT Act have been complied with. To Download, click on Annexure 5or Annexure 6or Annexure 7as applicable.

In case of Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), taxes shall be withheld at 20% plus applicable surcharge and cess or tax treaty rate whichever is beneficial in accordance with provisions of Section 196D of the IT Act, provided such FII/FPI provides PAN, Self-Declaration/No PE declaration (To download, click on Annexure 3) , Copy of Tax Residency Certificate for the financial year 2023-24 covering the period from April 1, 2023 to March 31, 2024, e-filed Form 10F or and Self Declaration in Form 10F, as applicable (To download, click on Annexure 8).

Members having multiple accounts under different Status/Category

Members holding shares under multiple accounts under different status/category 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.

Summary of applicable TDS/withholding tax rate

The said Dividend will be paid after deducting the tax at source as under:

1. Nil for resident shareholders in case Form 15G/Form15H (as applicable) along with self-attested copy of the valid PAN is submitted.
2. 10% for resident shareholders in case valid PAN is provided/available.
3. 20% for resident shareholders in case valid PAN is not provided/not available.
4. Beneficial tax treaty rate (based on tax treaty with India) for non-resident shareholders, as applicable will be applied based on the documents submitted by the non-resident shareholders.
5. 20% plus applicable surcharge and cess for non-resident shareholders including FII/FPI in case the aforementioned documents are not submitted.
6. At the rates prescribed in the nil/lower withholding certificate, if such certificate is made available.

Kindly note that the above rates will be subject to provisions of section 206AB of the IT Act as mentioned above.