Income Tax Department Receives Rs 2065 Cr Dividend Tax from Hindustan Zinc

IndiaCSR News Network

UDAIPUR: As part of dividend tax in view of the recently declared 1200% dividend by Hindustan Zinc, the Income Tax Department today received Rs. 2065 crore from the Company. A symbolic cheque of Rs. 2065 crore was presented to Chief Commissioner of Income Tax Smt. Neena Kumar today by Hindustan Zinc CEO Sunil Duggal and company’s CFO Amitabh Gupta. Also present on this occasion were the Additional Commissioner of Income Tax O.P. Kanther, Director Projects of HZL Naveen Singhal and Head of Corporate Communication Pavan Kaushik.

Amitabh Gupta, the CFO of Hindustan Zinc informed that the Company has recently announced 1200% dividend, Rs. 24 on a share of Rs. 2, which entailed an outflow of Rs,. 12,205 crore including dividend tax, the actual dividend being 10,141 crore. The government share of dividend was about Rs. 3000 crore, as the government possesses 29% in Hindustan Zinc. A cheque in this regard was presented by Hindustan Zinc to the Union Finance Minister Arun Jaitley on 11 April 2016.

Today, the company also paid the dividend tax of about Rs. 2065 crore arising out of pay-out dividend.

Accepting the dividend tax, the Chief Commissioner of Income Tax Mrs. Neena Kumar expressed her happiness as this dividend tax would meet a majority of income tax target set for the year 2016-17. She also emphasises on adhering paying income tax and filing returns regularly.

Sunil Duggal, CEO of Hindustan Zinc said, “zinc mining in India is more than 2500 years old and the retorts of ancient zinc mining can still be seen in Zawar, about 45 km from Udaipur.” To give value addition to the car owners, particular from the cars manufactured in India, Hindustan Zinc is exploring the possibilities of galvanization of car bodies. This would not only enhance the life of car but due to galvanized body, as the less steel would be used and this would reduce the weight of the car body, the mileage would also increase, he added.

Hindustan Zinc, in the year 2015-16, had paid total income tax of Rs. 2,225 crore which included a dividend tax of Rs. 542 crore.

Hindustan Zinc (NSE & BSE: HINDZINC) is the one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT per annum and a leading producer of silver.  The Company is headquartered in Udaipur, Rajasthan in India and has zinc-lead mines at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad; primary smelter operations at Chanderiya, Dariba and Debari, all in the state of Rajasthan; and finished product facilities in the state of Uttarakhand.

Hindustan Zinc has a world-class resource base with total reserve & resource of 375.1 million MT and average zinc-lead reserve grade of 11.5%. The Company has a track record of consistently growing its reserve & resource base since 2003 and currently has a mine life of over 25 years.

The Company is self-sufficient in power with an installed base of 474 MW coal-based captive power plants. Additionally, it has green power capacity of 309 MW including 274 MW of wind power and 35 MW of waste heat power. The Company has an operating workforce of over 18,000 including contract workforce.

Hindustan Zinc is a subsidiary of the BSE and NSE listed Vedanta Limited (formerly known as Sesa Sterlite Limited; ADRs listed on the NYSE), a part of London listed Vedanta Resources plc, a global diversified natural resources company.