The world of finance moves fast, and keeping up with the latest compliance requirements and industry developments can be a daunting task. But here’s the deal: falling behind is not an option! Brace yourself for three major announcements that are set to influence the financial sector: the SEBI’s game-changing KYC norms for e-wallets, the Income Tax Department’s sizzling hot AIS app launch, and SEBI’s deadline extension for adding nominee details to Demat accounts.
In this blog, we’ll have an in-depth understanding of each of these developments and explore what they mean for the finance sector. Let’s have a look one by one.
KYC Compliance for E-wallets
SEBI, the regulatory body for securities markets in India, has made it mandatory for mutual fund investors to complete transactions using only e-wallets that are KYC-compliant. The new regulation will be effective from May 1, 2023. This move aims to enhance the security of mutual fund transactions and reduce the risk of fraud. SEBI has requested fund companies to ensure that all e-wallets are fully compliant with the KYC norms prescribed by the RBI.
AIS App of Income Tax Department
With the introduction of the AIS app for taxpayers, the Income Tax Department aims to simplify the tax compliance process for individual taxpayers. The app will allow taxpayers to have a look at all of their tax-related information in the Annual Information Statement (AIS) or Taxpayer Information Summary (TIS). From April 1, 2023, Form 26AS will only reflect the data related to tax deducted at source- TDS and tax collection at source- TCS.
Benefits Of the AIS App
- Details of Payments
For other details such as instalments of advance tax paid, self-assessment tax, income-tax refund, Statement of Financial Transactions (SFT), and turnover as per Goods and Service Tax (GST) return, taxpayers will need to refer to the AIS.
- Details of Receivables
Taxpayers have the ability to access their information on TDS/TCS, interest, dividends, share transactions, tax payments, Income Tax refunds, as well as other information such as GST Data and Foreign Remittances through the AIS app, provided it is available in the AIS or TIS.
- Tax Filing in Advance
The app also enables easy prefilling of tax returns and provides online feedback on the displayed information.
Extension of Timeline for Nomination
SEBI has extended the deadline for traders and Demat account holders to add their nominee details by six months, from March 31, 2023, to September 30, 2023. The extension will give traders and Demat account holders more time to comply with new norms and avoid any disruptions to their accounts. SEBI had earlier stated that accounts without nominee details would be suspended for debits. The SEBI circular dated July 23, 2021, in conjunction with para 3(a) of the SEBI circular dated February 24, 2022, which relates to the freezing of accounts, will be implemented from September 30, 2023, rather than March 31, 2023.
Note: If your nomination is currently waiting with Shoonya, don’t worry! Our user-friendly PRISM portal allows you to take action on your own time, so you can provide updates and information to keep the nomination moving forward. Don’t let this opportunity slip away – take control of your nomination today!
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.