PAN Aadhaar linking
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- It is mandatory to link Aadhaar with PAN for the PAN’s with KYC status as resident individual. In case Aadhaar is not linked with PAN, the PAN will become inoperative. Accordingly, folios linked with such PAN are restricted for transactions.
- For NRIs, tax status should be first updated in the income tax records. Such updated PANs are considered as operative PAN for transaction. Note, tax status alone in investments as NRI will not suffice the Aadhaar PAN linking requirement.
- PAN Adhaar linking is not mandatory for individuals for whom obtaining either PAN or Aadhaar is not eligible for e.g.
- Residing in states of J&K, Assam and Meghalaya
- A non-resident as per Income Tax Act 1961
- Of the age 80 years or more at any time during the financial year
- Not a citizen of India
- Residents of Sikkim
- To link your Aadhaar with PAN via Web, please Click here to visit the Income Tax e-filing portal and link your Aadhaar with PAN. (Please keep your mobile phone handy to receive and submit the OTP (One Time Password) during the process)
- To link your Aadhaar with PAN via SMS, type a message in UIDPAN format i.e., UIDPAN (space) 12-digit Aadhaar number (space) 10-digit PAN number. Send this SMS from your registered number only to either 567678 or 56161.
- To check the status of linking of your Aadhaar with PAN please, Click here
In case Aadhaar is not linked with PAN:
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- PAN will become inoperative.
- PAN based KYC will turn invalid.
- All financial and non-financial transactions including systematic transactions will be restricted. Updation and change of PAN will be allowed provided the PAN is linked to Aadhaar. IDCW reinvestments and payouts will be moved to unclaimed.
- Since PAN is invalid, Form 15G/H will not be accepted.
- Attract higher TDS deduction on the payouts wherever applicable / as per Income Tax.
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- One Time Mandate (SIP/Lumpsum)
NPCI (National Payment Corporation of India) has issued guidelines to restrict the end date of the mandates for maximum of 40 years. Currently extension has been provided in consideration that pre-printed mandates with end year as 2099 are already in circulation.
Effective April 1, 2024, the maximum tenure on mandate should not exceed 40 years. NPCI has provided guidelines that “Mandates can be issued for a maximum duration of 40 years from the date of issuance”. Any mandate without the prescribed narration will be rejected. Hence, it is recommended to use new mandates which has 40 years maximum tenure narration pre-printed for SIP or lumpsum registration.
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- The ‘until cancelled’ option will no longer be available, and investors will now have to mention a specific end date which cannot be more than 40 years from the date of issuance, this is on basis of the guideline mentioned above.
- The existing perpetual SIPS will not be affected.
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- Folios without PAN/PEKRN
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- All financial and non-financial transactions including systematic triggers are being restricted.
- IDCW (Income Distribution cum Capital Withdrawal) reinvestments, payouts and FMP maturity payouts will be moved to unclaimed scheme/plan.
- Investors will not be able to lodge any complaint with AMC until the PAN is updated.
- Since PAN is not available, form 15G/15H are not accepted and TDS is being deducted at 20%.
- Updation and change of PAN will be allowed provided the PAN is linked to Aadhaar. Brokerage payable against investors whose KYC is invalid will be held back.
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- PAN can be updated by uploading request in below link:
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- https://mfs.kfintech.com/panupdation/
- Select fund name.
- Keep the Folio number, PAN / PEKRN details of all holders handy.
- Keep the image file of self-attested pan card ready.
- Upload of PAN copy to be done separately for each folio.
- Alternatively, PAN/PEKRN can be updated by providing a written request at the AMC/RTA
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