I-T seizes `440 cr Cairn Energy dividend
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.