Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: cpt :: empanelment :: form 3cd :: ACCOUNTING STANDARD :: TDS :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit
 
 
« General »
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018
 High Court Allows Woman To File Income Tax Returns Without Quoting Aadhaar
 If tax status is no longer NRI, all your income is taxable in India
 Tax Benefits from Different Types of Loans under the Income Tax Act, 1961
 Do you have any question about tax filings? Now, chat online with income tax experts to clear your doubts
 DHFL loan to Manpreet Estates under tax scan

KYC process delay for MFs may hit investors' tax plans
March, 15th 2011

Delay on the part of CDSL Ventures to complete the 'know-your-client' process for mutual funds will derail the tax planning of many investors looking to save taxes by investing in equity linked savings scheme, or ELSS. With just 16 days for the tax season to end, CDSL Ventures is staring at a huge pile of 'know your-client' (KYC) submissions waiting to be cleared.

According to three wealth managers whom ET contacted, CDSL Ventures is taking 40-45 days to complete the KYC process. Without KYC-compliance , investors cannot make new or additional mutual fund investments, or switch investment plans. "Delay in getting the KYC clearance is creating inconvenience to investors. If they do not submit their KYC application through designated collection points (point of service) or mutual fund houses, they'll have to wait for a long time to become KYC compliant," said Rajesh Krishnamoorthy, managing director , Ifast Financials.

Designated collection points and CDSL-appointed mutual fund houses "have been empowered to give 'KYC acknowledgement letters' with which investors can make their first transaction (investing in a fund)", Mr Krishnamoorthy said. "However, fund houses do not allow investors to redeem or switch plans using the temporary KYC acknowledgement letter ," he said. Capital market regulator Sebi has directed asset management companies to ensure that even investors making investments of less than Rs 50,000 adhere to KYC norms.

The regulator wants fund houses to verify the identity and address of the investor, financial status (including assessment of bank statements ), occupation and such other information that will establish the character of the investor. The fund industry has appointed CDSL Ventures to maintain the database on KYC-compliant investors. CVL will also act as an additional counter to accept and verify documents and provide 'KYC-acknowledgement' .

"We're doing our level best to expedite the KYC process. Of the two crore-odd unique fund investment folios, only 27 lakh are KYC compliant. People have just started giving us the details; this is causing a bunching-up in the system," said Cyrus Khambata, CEO, CDSL Ventures.

"Another problem is incomplete submissions; we've to go back and forth to get more information from the investors. We finish the KYC process of completed submissions in two days; the investor will get a confirmation regarding the same in five days after submission," Mr Khambata said. Fund houses are finding it difficult to draw information from investors , who are not comfortable providing financial details. Rich investors in smaller cities, who make several small investments in the names of their close relatives , are worried that these details will be used for tax purposes .

This, at times, deters investors from investing in mutual funds. Fund houses mobilising money through new fund offers are the worst affected, sources said. In February, ELSS schemes saw inflows of . 348 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions