Since separate rates for deduction of Withholding Tax on dividends have now been prescribed for filers and non-filers, Asset Management Companies are required to determine the individual shares in jointly held Units and each joint holder is required to be treated individually as filer or non-filer. Withholding Tax on dividend payments is now required to be deducted on the basis of the actual shares of the individual joint holders in Units of Open End Schemes ("Funds"). In case determination is not possible, then each joint account holder will be assumed to hold equal proportion of Units and deduction of Withholding Tax on dividend payments will be made accordingly i.e. 10% in respect of a joint holder whose name appears as a filer in Active Tax Payers List and 15% in respect of a joint holder who is a non-filer.
The joint account holders who are recorded as first holders of Units are requested to communicate the respective shares of joint holders in the beneficial interest/ownership of jointly held Units of the Funds managed by ABL Funds Company Limited, latest by June 21, 2017, failing which, all joint holders of Units in the Funds will be deemed to hold equal proportion of ownership in the Units and Withholding Tax will be deducted accordingly, i.e. @10% in case a joint holder is a filer and @15% in case a joint holder is a non-filer.
Separate letters have already been issued to the first named joint holders of Units with copies endorsed to other joint holders.
For ABL Funds Company Limited
Saqib Matin
CFO & Company Secretary
