I-T seizes `440 cr Cairn En­ergy div­i­dend

Financial Chronicle - - COMPANIES - PRESS TRUST OF IN­DIA

The In­come tax de­part­ment has seized a fur­ther Rs 440 crore of div­i­dend in­come due to Cairn En­ergy to re­cover a part of the Rs 10,247 crore­tax de­mand it had raised on the Bri­tish firm us­ing a ret­ro­spec­tive tax leg­is­la­tion.

The de­part­ment had pre­vi­ously seized Rs 666 crore of div­i­dends due to Cairn from its 4.95 per cent resid­ual hold­ing in Vedanta. It has also re­fused to pay tax re­fund of Rs 1,594 crore due to Cairn from over­pay­ment of cap­i­tal gains tax.

Sources said Vedanta had last month de­clared a Rs 21.2 per share div­i­dend and a 7.5 per cent pay­ment on pref­er­ence shares. For Cairn, the to­tal re­ceiv­able came to about Rs 440 crore.

But due to an in­come tax de­part­ment or­der, Vedanta trans­ferred that money to a sep­a­rate ac­count. This was then taken over by the tax de­part­ment.

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