GAIL (India) Limited — Capital/Financing Update 2021

Jan 11, 2021

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� (��) ��e.-s ~~- - �~~ ) ('TI<i'I ffiqjTT qi] 'Nil"! GAIL (India) Limited

Tic, 'l'R, 16 � q,flJ] � -.,,; �-110066, '1l<i'I GAIL BHAWAN, 16 BHIKAIJI CAMA PLACE NEW DELHl-110066, INDIA 'ITT'l/ PHONE, +911126182955 �/FAX, +911126185941 t--irer/E-mail, info@gail.co.in

(A Government of India Undertaking-A Maharatna Company)

ND/GAIL/SECTT /2021

January 11, 2021

I)	The Manager, 2. The Manager, Listing Compliance Listing Compliance National Stock Exchange ofindia Limited BSE Limited Exchange Plaza, 5th Floor, Floor I, Phiroze Jeejeebhoy Towers Dalal Plot No. C/1, G Block, Bandra-Kurla Street Complex, Bandra (East) Mumbai Mumbai - 400001 400051Serio Code: GAIL-EQ�--�-�S�cri�oCode�: 5�3_2_155�------�

Subject: Prior Intimation of the Meeting of the Board of Directors of GAIL (India) Limited (the "Company") on 15[th ] January, 2021

Dear Sir,

Pursuant to Regulation 29 of the Securities and Exchange Board ofindia (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and other applicable provisions of law, notice is hereby given that the Meeting of Board of Directors of the Company will be held on Friday, January 15, 2021, inter-alia, to consider the following proposals:

1. Buyback of the fully paid-up Equity shares of the Company of face value of Rs.10/­ each;

2. Declaration of Interim Dividend on the Equity Shares of the Company for the Financial year 2020-21

Further, pursuant to the Finance Act, 2020, with effect from April 1, 2020, Dividend Distribution Tax has been abolished and dividend income is taxable in the hands of the shareholders. In this regard, please find enclosed herewith an e-mail communication which is being sent to all the shareholders of the Company whose e-mail IDs are registered with the Company/Depositories explaining the process on TDS on dividends paid to the shareholders at prescribed rates along with the necessary forms for nil/lower tax deduction at source, The communication is also being made available on the website of the Company at:

GAIL Website----> Investor Zone----> Investor's Information----> Investor Guide ---->TDS on Dividend (www.gailonline.com)

In terms of Company's Code of Conduct to Regulate, Monitor and Report trading by Insiders - Insider Trading Code framed pursuant to the Securities and Exchange Board of India (Prohibition ofinsider Trading) Regulations, 2015, as amended, the trading wi. ndow f.or dealing in securities is already closed since 01.01.2021 as intimated to the stock e: c ;rtag 1,'°;[,] t}l['£i"J][!][\,I]

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xll�/CIN L40200DL1984GOl018976 www.gailonline.com

vide company letter No. ND/GAIL/SECTT/2020 dated 30.12.2020 and the same shall remain closed till 48 hours after the conclusion of the Board meeting wherein the financial results for the quarter ended 31.12.2020 will be considered and approved.

You are requested to please take a note of the same.

Thanking you,

Yours faithfully, For GAIL (India) Limited

Mt (A.K. Jha) Company Secretary

Encl: As above

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GAIL (INDIA) LIMITED Registered Office: 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110066 {CIN: L40200DL1984GOI018976}

Phone: 011-26182955, Fax: 011-26185941

Name of Shareholder

Dear Shareholder,

Subject: Intimation/ Communication in respect to Deduction of Tax at Source on Dividend for Financial Year 2020-21

In accordance with the provisions of the Income Tax Act, 1961 ('Act') as amended by and read with the provisions of the Finance Act, 2020, applicable with effect from April 1, 2020, dividend declared and paid by the Company is taxable in the hands of its shareholders, and accordingly the Company is required to deduct tax at source (TDS) at the applicable rates.

However, no TDS shall be deducted on the Dividend payable to a resident Individual if the total dividend to be received by them during FY 2020-21 does not exceed Rs. 5,000.

In view of the above, starting from the current financial year i.e. April 1, 2020 onwards, the Company would be deducting TDS as per applicable TDS rates, while paying dividend. In case of resident Resident Shareholders with valid shareholders, the rate currently prescribed for TDS is 7 .5% for those Permanent Account Number (PAN), 20% for resident shareholders without PAN or invalid PAN. Hence, the shareholders are advised to update their PAN with the Depository Participant, if shares are held in Demat form, and with the Registrar and Share Transfer Agent of the Company, if shares held in Physical form.

Tax shall be Deducted at Source @ 20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors ("FIis") and Foreign Portfolio Investors ("FPis") in view of specific provision under Section 196D of the Act.

Further, the shareholders have an option to apply to the Company for non-deduction of TDS or deduction of TDS at a lower rate by providing the necessary documents to the Company prescribed as under:

FOR RESIDENT SHAEHOLDERS:

Category of shareholders	Documentation requirement
	Docwnentary evidence that the person is covered under te provisions of
Mutual Fw1ds Insurance Companies	section 196 of the Act along with self-attested copy of PAN card and registration certifcate. Seif-declaration that it has fll benefcial interest with respect to the shares owned by it along with self-attested copy of PAN card and copy of registration certification issued by the IRDAI.
Alterative Investment Fund (AIF)	Seif-declaration that the person is covered by Notifcation No. 51/2015 dated 25thJune 2015 and established as Category I or Category II AIF under the SEBI regulations along with self-attested copy of PAN card and registration certifcate issued by SEEL
Goverment (Central/State)	Documentary evidence that the person is covered under Section 196 of the Act.

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L--

Any other Valid entity entitled to exemption notifica from TDS needs t Other resident shareholder • •

self-attested documentary evidence ( e.g. relevant copy of registration, tion, order, etc.) in support of the entity being entitled to TDS exemption o be submitted. Duly verified Form 15G or Form 15H along with the copy of self-attested PAN. Copy of blank Form 15G and 15H has been hosted at the official website of the Company. Certificate obtained from prescribed authority under section 197 of the Act. (TAN to be used for this purpose - DELG11331F)

The Non-Resident shareholders who wish to take benefit of the rates as prescribed under the Double Tax Avoidance Agreement ('DTAA') shall also be required to submit the necessary documents prescribed as under:

FOR NON-RESIDENT SHAREHOLDERS:

Category of shareholders	Documentation requirement
FPis and Flis	UpdateNerify the PAN and legal entity status as per the Act, if not already done, with the depositories. Provide declaration whether the investment in shares has been made under the general FDI route or under the FPI route. The declaration format can be downloaded from the link <>iven at the end of this communication.
Any entity entitled to exemption from TDS	Valid self-attested documentary evidence ( e.g. relevant copy of registration, notification, order, etc. by Indian tax authorities) in support of the entity being entitled to exemption from TDS is to be submitted.
Other non- resident shareholders	As per Section 90 of the Act the non-resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Treaty between India and the country of tax residence of the shareholder, if they are more beneficial to them. For tl1is purpose, i.e. to avail Tax Treaty benefits, the non-resident shareholders will have to provide tl1e following:
	• Self-attested copy of the PAN allotted by the Indian Income Tax
	authorities, if any; • Self-attested copy of valid Tax Residency Certificate obtained from the
	tax authorities of the country of which the shareholder is a resident;
	• Self-declaration in Form !OF
	Self-declaration from Non-resident, primarily covering the following:
	• Non-resident is eligible to claim the benefit ofrespective tax treaty; • Non-resident receiving the dividend income is the beneficial owner of such
	mcome;
	• Dividend income is not attributable/effectively connected to any Permanent
	Establishment (PE) or Fixed Base in India;
	• Non-resident complies with any other condition prescribed in the relevant Tax Treaty and provisions under the Multilateral Instrument ('MLI');
	• Non-resident does not have a place of effective management in India .

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Application of the beneficial rate of tax treaty for TDS is at the discretion of the company and shall depend upon completeness of the documentation and review of the same by the Company.

The Non-Resident shareholders may also submit Certificate obtained from prescribed authority under section 195/197 of the Indian Income Tax Act (TAN to be used for this purpose - DELGl 133 lF).

The above referred documents, duly completed and signed are required to be sent to the Company at the Registered office ( or email at shareholders@g_ail.co.in) or to our Registrar and Share Transfer Agent (Address: MCS Share Transfer Agent Limited, Unit: GAIL (India) Limited, 1[st ] Floor, F- 65, Okhla Industrial Area, Phase-I, New Delhi-110020 or email at admin@mcsregistrars.com) by quoting your Name, Folio number I Demat Account No. (DP and Client ID both), Number of shares and PAN details on or before 29[th ] January. 2021 for the FY 2020-21 in order to enable the Company to determine and deduct appropriate TDS / withholding tax.

Hence, to enable us to deduct TDS on Dividend at the rate lower than the prescribed rate, in FY 202021, the above documents should be submitted on or before 29[th ] January, 2021. No communication on the tax determination/ deduction shall be entertained in respect of the dividend declared after the above time limit.

All communications/ queries in this respect should be addressed and sent to our RTA, at its email address mentioned above.

Shareholders may note that in case the tax on said dividend is dedncted at a higher rate in absence of receipt or insufficiency of the aforementioned details/documents from you, an option is available to you to file the return of income as per Income Tax Act, 1961 and claim an appropriate refund, if eligible.

In order to know the. amount of tax dedi1cted, out of dividend paid to shareholders after payment of dividend, the TDS certificate shall be available at Company's website in due course at the following path: GAIL website-> Investor Zone-> Investor's Information-> Investor Gnide ->TDS on Dividend. Moreover, to know the amount of tax deducted the Shareholder can also check Form 26AS from their e-filing accounts at h:t!pJ ; //incometaxindiaefiling,gQ]!_jg

Thanking You,

Yours faithfully,

For GAIL India Limited

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(A.K. Jha)

Company Secretary

Disclaimer: The above information does not constitute tax or legal advice. In view of the individual nature of the tax implications, each investor is advised to consult his or her own tax advisors with respect to the specific tax implications.

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