FAQs on Majesco Dividend

  1. When did the company approve an Interim Dividend?
    The Board of Directors of the Majesco Limited (the Company) at its meeting held on Tuesday, December 15, 2020 have approved an Interim Dividend of Rs. 974/- (19480%) per equity share of face value of Rs. 5/- each for the financial year 2020-2021.

  2. Who are eligible to receive the declared Interim Dividend?

The said Interim Dividend will be payable to those shareholders whose names appear in the Register of Members of the company or in the records of the Depositories as beneficial owners of the shares as at the close of business hours on FRIDAY, December 25, 2020 (Record date).

Anybody who is receiving dividend should note that the TDS/Tax implication are in line with their applicable individual tax rates.

  1. Is there any general communication document shared by company to inform shareholders?

Yes. Please click here to see general communication which has been mailed and hosted on company website to inform our shareholders about the revised provisions of the Income Tax Act, 1961, as amended by the Finance Act, 2020 and the relevant documentation required to be furnished by the shareholders to the Company in this regard.

  1. What do you mean by ‘revised provisions of the Income Tax Act, 1961’?

Shareholders should note that as per the revised provisions of the Income Tax Act, 1961 (“the Act”), dividends paid or distributed by a company after April 1, 2020 are taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the applicable rates (“TDS”) at the time of making the payment of dividends as and when declared by the Company.

The TDS would vary depending on the residential status of the shareholder. The information given in the table below provides a brief of the applicable TDS provisions under the Act for Resident and Non- Resident shareholder(s) categories along with the required documents. You are requested to update your records such as tax residential status, permanent account number (PAN) and register your email address, mobile numbers and other details with your relevant depositories through your depository participants in case you are holding shares in dematerialised form and if you are holding shares in physical mode, you are requested to furnish details to the Company’s Registrar and share transfer agent i.e. KFin Technologies Private Limited (formerly Karvy Fintech Private Limited).

  1. Do we have any Presentation related to Dividend Payout detail?

Yes. Please click here to get detailed Investor Presentation related to Dividend Payout.

  1. Following is the communication that summarizes the applicable TDS provisions, as per the Income Tax Act, 1961, for Resident and Non-Resident shareholder categories.

For Resident Shareholders:

Sr. No.

Particulars

Rate of Deduction of Tax at Source

Documents Required (if any)

1

Valid PAN updated in the Company’s Register of Members

7.5%

No document required (if no exemption is sought)

2

No PAN/Valid PAN not updated in the Company’s Register of Members

20%

No document required (if no exemption is sought).

3

Availability of lower/nil tax deduction certificate issued by Income Tax Department u/s 197 of the Act

Rate specified in the Certificate

Lower tax deduction certificate obtained from Income Tax Authority

4

Submission of form 15G/15H

Nil

Declaration in Form No. 15G (applicable to any person other than a company or a firm) / Form 15H (applicable to an Individual who is 60 years and above), fulfilling certain conditions. Please download

Form 15G Click Here

Form 15H Click Here

5

Securitisation Trust

Nil

Copy of registration/ document evidencing the shareholder being a securitisation trust (as defined in clause (d) of the Explanation below section 115TCA of the Act).

6

Shareholders to whom section 194 of the Act does not apply such as LIC, GIC, etc.

Nil

Documentary evidence that the said provisions are not applicable.

7

Shareholder covered u/s 196 of the Act such as Government, RBI, corporations established by Central Act & mutual funds specified under section 10(23D) of the Act

Nil

Documentary evidence for coverage u/s 196 of the Act

8

Category I and II Alternative Investment Fund

Nil

SEBI AIF registration certificate to claim benefit under section 197A (1F) read with section 10(23FBA) of the Act

9

Recognised provident funds

Approved superannuation fund

Approved gratuity fund

Nil

Necessary documentary evidence as per Circular No. 18/2017 issued by Central Board of Direct Taxes (CBDT)

10

National Pension System Trust referred to in section 10(44) of the Act

Nil

No TDS as per section 197A (1E) of the Act

11

PAN is not available or invalid PAN

Nil

12

Shareholder exempted from TDS provisions in terms of any CBDT Circular or notification

Nil

Relevant documentary evidence in relation to the same and PAN (self-attested)

* In case your income is subject to lower rate of TDS, or is exempt under Income Tax Act, 1961, you are requested to submit the same duly signed by the authorized signatory at the shareholder portal on or before 5.00 PM (IST) of December 21, 2020.

** Notwithstanding the provisions of the above table, tax would not be deducted on payment of dividend to resident individual shareholder(s), if the total dividend to be paid in any financial year does not exceed INR 5,000.

For Non-Resident Shareholders:

Tax is required to be withheld in accordance with the provisions of Section 195 of the Act at applicable rates in force. As per the relevant provisions of the Act, the tax shall be withheld at the rate of 20% (plus applicable surcharge and cess) on the amount of dividend payable. However, as per Section 90 of the Act, a non-resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Agreement (“DTAA” or “Treaty”) 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 with the Company / Company’s RTA or before 5.00 PM (IST) of December 21, 2020:

Sr. No.

Particulars

Rate of Deduction of Tax at Source

Documents Required (if any)

1

Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs)

20% (plus applicable surcharge and cess)

FPI registration number / certificate.

2

Other Non-resident shareholders

20% (plus applicable surcharge and cess) or tax treaty rate whichever is beneficial

To avail beneficial rate of tax as per treaty following documents would be required:

  1. Tax Residency certificate issued by revenue authority of country of residence of shareholder for the year in which dividend is received

  2. Self-certified PAN

  3. Form 10F filled & duly signed Click Here to download – 10F

  4. Self-declaration for non-existence of permanent establishment/ fixed base in India.

  5. Self-declaration by the shareholder regarding the satisfaction of the place of effective management (POEM), principal purpose test, GAAR, Simplified Limitation of Benefit test (wherever applicable), as regards the eligibility to claim recourse to concerned Double Taxation Avoidance Agreements.

Click Here to download Self declaration for foreign corporate shareholders

Click Here to download Self declaration for other than foreign corporate non -resident shareholders

3

Indian Branch of a Foreign Bank

Nil

Lower tax deduction certificate u/s 195(3) obtained from Income Tax Authority

Self-declaration confirming that the income is received on its own account and not on behalf of the Foreign Bank

4

Availability of Lower/NIL tax deduction certificate issued by Income Tax Department u/s 197 of the Act

Rate specified in the Certificate

Lower tax deduction certificate obtained from Income Tax Authority

* Please note that benefit of Double Tax Avoidance Agreement (DTAA) shall not be provided to FIIs and FPIs

** The Company 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 of the documents submitted by the Non-Resident shareholder and review to the satisfaction of the Company.

*** Tax Identification Number of the shareholder in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the shareholder is identified by the Government of that country or the specified territory of which he claims to be a resident.

  1. Are there any general instructions which shareholders are required to take note?

Yes, Shareholders who are exempted from TDS provisions through any circular or notification may provide documentary evidence in relation to the same, to enable the Company in applying the appropriate TDS on Dividend payment to such shareholder.

If the tax on said Dividend is deducted at a higher rate in absence of receipt of or satisfactory completeness of the afore-mentioned details/documents by the Company, the shareholder may claim an appropriate refund in the return of income filed with their respective Tax authorities. No claim shall lie against the Company for such taxes deducted.

The aforementioned documents (duly completed and signed) are required to be uploaded with Company’s RTA KFin Technologies Private Limited at https://ris.kfintech.com/form15 or emailed to einward.ris@kfintech.com on or before December 21, 2020, in order to enable the Company to determine and deduct appropriate TDS / Withholding Tax. Incomplete and/or unsigned forms and declarations will not be considered by the Company. No communication on the tax determination/ deduction shall be considered after December 21, 2020, 5:00 PM (IST).

The Company will arrange to email a soft copy of TDS certificate to you at your registered email ID post completion of activities as per the prescribed timelines. Shareholders will also be able to see the credit of TDS in Form 26AS, which can be downloaded from their e-filing account at https://incometaxindiaefiling.gov.in

In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided / to be provided by the Shareholder(s), such Shareholder(s) will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings.

  1. Instructions for shareholders holding Physical shares?

Shareholders who have not registered their email address are requested to register the same with our RTA in case of physical shareholding:

  • In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to “RTA” einward.ris@kfintech.com

  1. Instructions for shareholders holding shares in Demat?

Shareholders who have not registered their email address are requested to register the same with our with Depository Participant (‘DP’) in case of demat holding:

  • In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to your DP.

  1. Who is Company’s Registrar and share transfer agent (RTA)?

In line with the Securities and Exchange Board of India (“SEBI”) directives, the Company is required to update bank details of the Members of the Company to enable usage of the electronic mode of remittance for distributing dividends and other cash benefits to its Members. In this regard, Members holding shares in electronic form are requested to furnish/Update their bank details to/with their DPs. Members holding shares in physical form are requested to furnish their bank details, alongwith a photocopy of a blank cancelled cheque pertaining to your bank account to the RTA, M/s KFin Technologies Private Limited at below address-


KFin Technologies Pvt. Ltd.

(Unit – Majesco Limited)

Selenium Building, Tower B, Plot 31-32,

Gachibowli,Financial District, Nanakramguda,

Serilingampalli, Hyderabad – 500 032.

  1. Do we have any future plan post Dividend distribution?

Yes. Please find below the required information:

  • As a first step distribution of balance cash of INR 103 crore to the total number of shares 2,86,22,189 will be carried out as expeditiously as possible subject to board and regulatory approvals.

  • Monetisation of real estate – This could take longer i.e. over a year and depending on real estate market conditions.

  • Post monetisation of real estate, the Company will decide best method for distribution of sale proceeds to shareholders.

Should you seek any further clarification, please write to us at einward.ris@kfintech.com or investor.grievances@majesco.com

Thoma Bravo Completes Acquisition of Majesco

For details on Majesco US, visit  https://majesco.com

Earnings Release

Majesco Q1FY21 Operating Revenue at Rs 311.0 crore; up 20.1% YoY; Product Revenue at Rs 149.1 crore, 47.9% of total revenue; up 34.6% YOY, Q1FY21 Adjusted EBITDA at Rs 46.7 crore; up 39.3% YoY

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