ANNEXURE II

ANNEXURE TO THE STATEMENT OF POSSIBLE SPECIAL TAX BENEFITS AVAILABLE TO THE
COMPANY, ITS SHAREHOLDERS AND MATERIAL SUBSIDIARY UNDER THE APPLICABLE DIRECT
AND INDIRECT TAXES (“TAX LAWS”) IN INDIA

Outlined below are the possible special tax benefits available to the Company, its Shareholders and its Material
Subsidiary under the Tax Laws. These possible special tax benefits are dependent on the Company or its
shareholders or its material subsidiary fulfilling the conditions prescribed under the Tax Laws. Hence, the ability
of the Company or its Shareholders or its Material Subsidiary to derive the possible special tax benefits is
dependent upon fulfilling such conditions, which are based on business imperatives it faces in the future, it may
or may not choose to fulfill.

UNDER THE TAX LAWS

. Special tax benefits available to the Company

@

The Company avails direct tax benefits under the Income-tax Act, 1961 (‘the Act’). The same have
been outlined as under :-

Concessional Tax Rate under Section 115BAA of the Act

A new section 115BAA has been inserted in the Act by the Taxation Laws (Amendment) Act, 2019 (“the
Amendment Act, 2019”) with effect from 1 April 2020 (Assessment Year (‘AY’) 2020-21). Section
115BAA grants an option to a domestic company to be governed by the section from a particular
assessment year. If a company opts for section 115BAA of the Act, it can pay corporate tax at a reduced
rate of 25.168% (22% plus surcharge of 10% and education cess of 4%). Section 115BAA of the Act
further provides that domestic companies availing the option will not be required to pay Minimum
Alternate Tax (MAT) on their “book profits’ under section 115JB of the Act. However, such a company
will no longer be eligible to avail specified exemptions / incentives / deductions under the Act and will also
need to comply with the other conditions specified in section 115BAA. The company shall also not be
allowed set-off of any loss carried forward or depreciation from earlier years if such loss or depreciation is
attributable to such exemptions / incentives / deductions. Further, if a company opts for section 115BAA,
the tax credit under section 115JAA (MAT credit), if any, which it is entitled to on account of MAT paid in
earlier years, will no longer be available.

The Company has opted for the lower corporate tax rate of 25.168% provided under section 115BAA of the
Act with effect from Financial Year (‘FY’) 2019-20.

Deduction under section 80JJAA of the Act

Subject to fulfilment of prescribed conditions, the Company is entitled to claim deduction, under the
provisions of Section 80JJAA of the Act, of an amount equal to thirty per cent of additional employee cost
(relating to specified category of employees) incurred in the course of business in the previous year, for
three assessment years including the assessment year relevant to the previous year in which such
employment is provided.

Section 80M of the Act

Under Section 80M of the Act, in respect of dividend received by the Company from any other domestic
company or a foreign company or a business trust and included in the Company’s total income, a deduction
is available to the Company of an amount equal to so much of the dividends received from such other
domestic company or foreign company or business trust as does not exceed the amount of dividend
distributed by the Company on or before one month prior to due date of furnishing the income-tax return

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