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Tuesday, October 26, 2021

Complete this important work by the end of this month, otherwise you will not be able to withdraw your own investment in mutual funds

If you do not link Aadhaar and PAN by the end of this month by June 30, 2021, then you will not be able to invest in mutual funds.

Mutual fund investors should be careful and complete the necessary work as per SEBI guidelines by the end of this month. This is an important task, linking PAN and Aadhaar. If you do not link Aadhaar and PAN by the end of this month by June 30, 2021, then you will not be able to invest in mutual funds. Apart from this, if you have an investment in mutual funds, if there is no linking of PAN and Aadhaar (Valid PAN Status), it will not be able to be redeemed. According to the guidelines of market regulator SEBI, it is necessary to link PAN and Aadhaar for any mutual fund transaction from July 1, 2021.
Recently, Registrar and Transfer Agent (RTA) Computer Age Management Services (CAMS) in association with NSDL investigated the Aadhaar-PAN linking of mutual fund investors. It was found that according to the Income Tax database, the PAN of many investors is inactive.

If ITR has not been filed in the last two years, then more TDS-TCS will be charged, special system prepared to identify such people

PAN is mandatory for these transactions

  • Fresh Purchase: If you are investing in mutual funds for the first time or if the current investor is investing for the first time in any other scheme, then PAN card should be valid.
  • Additional purchases: If PAN is invalid, then existing investors will not be able to add additional units to their existing mutual fund investments.
  • SIP: Investment of existing investors made through Systematic Investment Plan (SIP) will also stop if PAN is invalid.
  • STP: PAN is not necessary only for new investment or additional investment in one mutual fund, but it will also be necessary for investing from one mutual fund scheme to another scheme through Systematic Transfer Plan (STP).
  • Redemption: If you have invested in any mutual fund scheme, then you will not be able to withdraw your own money if PAN is invalid and redemption requests will be rejected.
  • SWP: Systematic Withdrawal Plan (SWP) will also be stopped if PAN is invalid, which can spoil the monthly budget.

solve this problem like this

  • If there is a problem in linking it with Aadhaar due to any change in PAN, then existing investors can contact their AMC or RTA and request for updating the correct PAN.
  • If the given PAN is correct then investors should first approach the Income Tax Authority for correction in PAN status. Once the correction is done, inform the AMC/RTA for further validation process.
    (Article: Amitava Chakrabarty)

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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