Shriram City Union Finance Limited - Karvy

STATEMENT OF TAX BENEFITSUnder the current tax laws, the following tax benefits interalia, will be available to the Debenture Holders asmentioned below. The tax benefits are given as per the prevailing tax laws and may vary from time to time inaccordance with amendments to the law or enactments thereto. The Debenture Holder is advised to consider in hisown case the tax implications in respect of subscription to the Debentures after consulting his tax advisor asalternate views are possible. We are not liable to the Debenture Holder in any manner for placing reliance upon thecontents of this statement of tax benefits.To our Debenture HolderA. INCOME-TAXITo the Resident Debenture Holder1. Interest on NCD received by Debenture Holders would be subject to tax at the normal rates of tax in accordancewith and subject to the provisions of the I.T. Act. No income tax is deductible at source as per the provisions ofsection 193 of the Income Tax Act (IT Act) on interest on debentures in respect of the following:(a) In case the payment of interest on debentures to resident individual Debenture Holder in the aggregate during thefinancial year does not exceed ` 2,500 provided the debentures are listed on a recognized stock exchange in Indiaand the interest is paid by an account payee cheque.(b) When the Assessing Officer issues a certificate on an application by a Debenture Holder on satisfaction that thetotal income of the Debenture holder justifies no/lower deduction of tax at source as per the provisions of Section197(1) of the I.T. Act; and that certificate is filed with our Company BEFORE THE PRESCRIBED DATE OFCLOSURE OF BOOKS FOR PAYMENT OF DEBENTURE INTEREST.(c) When the resident Debenture Holder with PAN (not being a company or a firm or a senior citizen) submits adeclaration in the prescribed Form 15G verified in the prescribed manner to the effect that the tax on his estimatedtotal income of the previous year in which such income is to be included in computing his total income will be nil asper the provisions of section 197A (1A) of the I.T. Act. HOWEVER under section 197A (1B) of the I.T. Act, Form15G cannot be submitted nor considered for exemption from deduction from tax at source if the aggregate of incomeof the nature referred to in the said section, viz. dividend, interest, etc as prescribed therein, credited or paid or likelyto be credited or paid during the Previous year in which such income is to be included exceeds the maximumamount which is not chargeable to tax, as may be prescribed in each year’s Finance Act. To illustrate, as onApril 1, 2011, the maximum amount of income not chargeable to tax in case of individuals (other than womenassesses, senior citizens and super senior citizens) and HUFs is ` 180,000; in the case of every individual being awoman resident in India and below the age of 60 years at any time during the previous year is ` 190,000; in the caseof every individual being a resident in India, who is of the age of 60 years or more but less than 80 years at any timeduring the previous year (Senior Citizen) is ` 250,000; and in the case of every individual being a resident in India,who is of the age of 80 years or more at any time during the previous year (Super Senior Citizen) is ` 500,000 forPrevious Year 2011-12. Senior citizens, who are 60 or more years of age at any time during the financial year, enjoythe special privilege to submit a self-declaration in the prescribed Form 15H for non deduction of tax at source inaccordance with the provisions of section 197A (1C) of the I.T. Act even if the aggregate income credited or paid orlikely to be credited or paid exceeds the maximum amount not chargeable to tax i.e. ` 250,000 for FY 2011-12provided that the tax due on total income of the person is NIL. In all other situations, tax would be deducted atsource as per prevailing provisions of the I.T. Act; Form No.15G WITH PAN / 15H WITH PAN / Certificateissued u/s 197(1) has to be filed with our Company before the prescribed date of closure of books for paymentof debenture interest.59