On March 21, 2025, the Board of Directors of The Bombay Burmah Trading Corporation, Limited (BBTC) declared a second interim dividend of Rs. 4 (200%) per equity share for the Financial Year 2024-25. This dividend payment is subject to Tax Deduction at Source (TDS) as per the provisions of the Income Tax Act, 1961, which has been amended by the Finance Act, 2020. Effective from 1st April, 2020, dividend income is taxable in the hands of shareholders.

Key Updates and Shareholder Actions:

1. Tax Deduction on 2nd Interim Dividend: The Corporation will deduct TDS on the dividend paid to shareholders at the rates applicable as per the Income Tax Act. Shareholders are encouraged to update their Permanent Account Number (PAN) and residential status to ensure accurate tax deductions. For resident shareholders, TDS will be deducted at a 10% rate, provided they have registered a valid PAN with the Corporation or Depository Participant. Shareholders without a PAN or with invalid PAN will be subject to a 20% TDS.

2. Dividend Record Date: The record date for determining shareholder eligibility to receive the dividend is Thursday, 27th March, 2025. This is the cut-off date for ensuring eligibility for the 2nd interim dividend.

3. TDS for Non-Resident Shareholders: Non-resident shareholders will be subject to a 20% TDS on the dividend amount, as per Section 196D of the Income Tax Act, unless they qualify for a lower tax rate through Double Taxation Avoidance Agreements (DTAA). In this case, additional documentation, such as Tax Residency Certificates and Form 10F, will be required to apply the DTAA rate.

4. Required Documents: Shareholders must ensure their details, including PAN, email address, and residential address, are updated with the Corporation or Depository Participant by March 27, 2025. Failure to do so could lead to the deduction of tax at a higher rate. Shareholders claiming exemptions from TDS or those eligible for a reduced rate under DTAA need to provide the necessary self-attested forms and documents by this deadline.

5. Bank Account Details Update: To facilitate the direct credit of dividends to bank accounts, shareholders are advised to ensure their bank account details are updated in their respective demat accounts or physical folios. In line with recent SEBI guidelines, dividends will only be paid electronically to shareholders holding shares in physical form from April 1, 2024.

6. Exemptions and Tax Slabs: The Corporation will apply various exemption certificates (e.g., for Mutual Funds, Insurance Companies, Pension Funds, and Provident Funds) to the TDS calculation. Shareholders claiming exemptions or reduced rates must submit the relevant documents by the stipulated date.

For further assistance, shareholders are requested to visit the official portal of the Corporation and KFIN Technologies, the Registrar and Transfer Agent, or reach out to the customer service centers for guidance.

This communication aims to ensure that the dividend payment process is tax-compliant and seamless for all shareholders, enabling efficient tax deduction and dividend transfer.

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