Zensar Technologies Ltd. — Regulatory Filings 2020

Dec 29, 2020

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Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

Date: December 29, 2020

BSE Limited Corporate Service Department, 1[st] Floor, P. J. Towers, Dalal Street, Mumbai 400 001 Fax: (022) 2272 2039/2272 3121 Scrip ID: ZENSARTECH Scrip Code: 504067

The National Stock Exchange of India Ltd. Exchange Plaza, 5[th] floor, Plot No. C/1, ‘G’ block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051 Fax: (022) 2659 8237/2659 8238 Symbol: ZENSARTECH Series: EQ

Dear Sir/Madam,

Subject: Email communication to shareholders regarding amendment in taxation provisions

Pursuant to provisions of the Income Tax Act, 1961 (Act), as amended by the Finance Act 2020, dividends paid or distributed by a company on or after April 1, 2020 shall be taxable in the hands of the shareholders.

In view thereof, enclosed is the email communication sent to all the shareholders having their email ID’s registered with the Company/ Depositories elaborating the process to be followed.

The above is for your information. This communication is also available on the website of the Company at www.zensar.com.

Thanking you,

Yours sincerely,

For Zensar Technologies Limited GAURAV Digitally signed by GAURAV TONGIA TONGIA Date: 2020.12.29 15:46:20 +05'30' Gaurav Tongia Company Secretary

Encl: As above.

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Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

Dear Shareholder,

At the outset, we hope you are healthy and safe.

We write to inform you about the amendment in taxation law / rules while making the payment of Dividend as and when recommended / declared by the Company.

As you may be aware, pursuant to provisions of the Income Tax Act, 1961 (Act), as amended by the Finance Act 2020, dividends paid or distributed by a company 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 time of making the payment of the said dividend declared at prescribed rates including applicable surcharge and cess as notified from time to time.

This communication provides details of the applicable Tax Deduction at Source (TDS) provisions under the Act for Resident and Non-Resident shareholder categories.

All the shareholders are requested to ensure that their details with reference to valid Permanent Account Number (PAN), Residential status as per Act i.e. Resident or Non-Resident as applicable for FY 2020-21, Category of their account as per the PAN, email/postal address, Bank Account Details are complete / updated, as applicable, with their account maintained with Depository Participant (in case of Shares held in dematerialised form) and in case of shares held in physical form, complete / updated with Kfin Technologies Private Limited, the Company's Registrar & Share Transfer Agent ("RTA / KFin").

A. For Resident Shareholders:-

Tax will be deducted at source ( "TDS" ) under Section 194 of the Act @ 7.5% on the amount of dividend payable unless exempt under any of the provisions of the Act. However, in case of individuals, TDS would not apply if the aggregate of total dividend paid/payable to them by the Company during FY 2020-21 does not exceed Rs. 5,000. Tax deduction will be subject to the below requirements:

Where, the Permanent Account Number ( PAN ) is available and such PAN is valid / operative as per the provisions of the Act:

In accordance with Section 194 of the Act, tax shall be deducted at source from the dividend amount at rate of 7.5% where shareholders have registered their valid PAN with KFin and at rate of 20% for cases where the shareholders do not have PAN / have not registered their valid PAN.

This TDS will be deducted unless exempt under the provisions of the Act and subject to furnishing of the following self-certified documents:

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Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

• i. Insurance companies: Documentary evidence that the provisions of section 194 of the Act are not applicable to them (self-attested by the competent authority with affixed stamp);

• ii. Mutual Funds: Documentary evidence to prove that the mutual fund is a mutual fund specified under clause (23D) of section 10 of the Act (declaration form is annexed in the below link);

• iii. Alternative Investment Fund (AIF) established in India: Self - declaration that its dividend income is not chargeable under the head 'Profit and Gains of Business or Profession' and exempt under section 10(23FBA) of the Act and they are established as Category I or Category II AIF under the SEBI regulations. (declaration form is annexed in the below link);

• iv. Entities Exempt under Section 10 of the Act: In case of resident non-individual shareholders, if the income is exempt under Income Tax Act, 1961, the authorized signatory shall submit the self-declaration duly signed with stamp affixed for the purpose of claiming exemption from tax deduction at source (declaration form is annexed in the below link);

• v. Corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income- tax on its income - Documentary evidence that the person is covered under section 196 of the Act;

• vi. Form 15G/15H in the case of eligible Resident shareholders: No tax shall be deducted in the case of a resident shareholder if the shareholder provides duly signed Form 15G (applicable to any person other than a Company or a Firm) or Form 15H (applicable to an individual above the age of 60 years), provided that all the prescribed eligibility conditions are met (declaration form is annexed in the below link).

Blank Form in respect of above stated Self declaration may be downloaded from the website of the RTA viz. https://ris.kfintech.com/form15

Where a shareholder furnishes lower / nil withholding tax certificate under Section 197, TDS will be deducted as per the rates prescribed in such certificate.

• B. 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 provisions of the Act, the tax shall be withheld @ 20% (plus surcharge and cess, as applicable) on the amount of dividend payable.

• As per section 90 of the Act, a non-resident shareholder has an option to be governed by the provisions of the Double Taxation Avoidance Agreement ( DTAA ) between India and the country of tax residence of the shareholder, if such DTAA provisions are more beneficial to such shareholder. To avail the DTAA benefits, the non-resident shareholder will have to compulsorily provide the following documents:

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Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

• a. Copy of Permanent Account Number (PAN), if available.

• b. Self-attested copy of Tax Residency Certificate ( TRC ) issued by the tax authorities of the country of which shareholder is tax resident, evidencing and certifying shareholder's tax residency status during FY 2020-21.

• c. Completed and duly signed Self-Declaration in Form 10F;

• d. Self-declaration of having no taxable presence, fixed based or permanent establishment in India in accordance with the applicable Tax Treaty and Beneficial ownership by the non-resident shareholder.

The format of the documents referred to in point no. (c) and (d) above can be downloaded from the website of the RTA viz. https://ris.kfintech.com/form15

The Company will apply its sole discretion and is not obligated to apply the beneficial DTAA rates for tax deduction on dividend payable to shareholders. Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review by the Company of the documents submitted by the Non- Resident shareholders.

1. Notwithstanding the above, tax shall be deducted at source/ withholding tax @20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors ( "FII" ) and Foreign Portfolio Investors ( "FPI" ). Such TDS/ withholding tax rate shall not be reduced on account of the application of the lower DTAA rate, if any.

2. Where a shareholder (other than FII and FPI as covered in Para B(3) above) of the Act furnishes valid lower / nil withholding tax certificate under Section 195 of the Act, TDS will be deducted as per the rates prescribed in such certificate.

C. For all Shareholders

The shareholders are requested to upload the aforementioned documents latest by 5 PM, Sunday, January 17, 2021 on the website of the RTA viz. https://ris.kfintech.com/form15 and also email them at einward.ris@kfintech.com in order to enable the Company to determine and deduct appropriate TDS / withholding tax rate. No communication on the tax determination/deduction shall be entertained post January 17, 2021.

Documents received by Post or from registered email ID will only be accepted. In case of joint shareholders, the shareholder named first in the Register of Members is required to furnish the requisite documents for claiming any applicable beneficial tax rate.

Shareholders may note that in case the tax on said dividend is deducted at a higher rate in absence of receipt of the aforementioned details/documents from you, option is available to you to file the return of income as per Act and claim for a credit / appropriate refund, if eligible. No claim shall lie against the Company for such taxes deducted. Shareholders, whose valid PAN is updated, will 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 The Company

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Registered Office : Zensar Technologies Limited Zensar Knoewledge Park, Plot No. 4, MIDC Kharadi, Off Nagar Road, Pune 411014, India. Tel: +91 (20) 6607 4000, 27004000 Fax: +91 (20) 6605 7888, CIN: L72200PN1963PLC012621

shall not be liable to entertain any request from such shareholder and the requisite steps will have to be taken by the shareholder at his / her end in consultation with the Tax Advisor.

Thanking you,

Yours faithfully,

For Zensar Technologies Limited Sd/-

Gaurav Tongia

Company Secretary

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