Important Updates: PAN Validation Requirements for Mutual Fund Transactions

We are reaching out to you with some important updates regarding recent guidelines issued by the CBDT (Central Board of Direct Taxes) concerning PAN validation requirements for mutual fund transactions.

To ensure seamless processing of your mutual fund transactions and compliance with the new guidelines, we kindly request your attention to the following points:

1.Validation of PAN with Income Tax Records:

  • Your PAN number needs to be validated with the Income Tax Department (ITD) records for all mutual fund transactions.
  • Please ensure that your PAN details match accurately with your income tax records to avoid any discrepancies.

You can use the below link to validate your Pan number with ITD

Online PAN Verification (Click here)

2. Investor Name Verification:

  • The investor name provided for all fresh purchases must match exactly with the name registered in your income tax records
  • Kindly verify that the name provided during transactions aligns with the details in your PAN records.

3. Date of Birth (DOB) or Date of Incorporation (DOI):

  • For individuals, the Date of Birth provided should match with the PAN records.
  • For non-individuals, the Date of Incorporation must be provided accurately as per PAN records.
  • Ensure that the DOB or DOI provided during transactions corresponds with the records maintained by the Income Tax Department.

4. Guardian Details for Minors:

  • If you are investing on behalf of a minor, it is mandatory to provide the guardian’s name and Date of Birth.
  • Please ensure that guardian details are provided accurately to facilitate smooth processing of transactions.

5. Update of Existing Investor Details:

  • For existing investors whose Name or Date of Birth in the folio does not match with the PAN/ITD records, we urge you to update your details promptly.
  • Any discrepancies should be rectified either in the mutual fund records or in the Income Tax Department records.

Please use this link to modify kyc online : (Click here)

We kindly request your cooperation in evaluating and ensuring that your details adhere to these guidelines by March 31, 2024. Failure to comply with these requirements may lead to rejection of transactions by the Registrar and Transfer Agents (RTAs) from April 01, 2024.

Avatar photo

By Team WM

WealthMunshi Team comprises finance professionals, writers, editors, and subject matter experts dedicated to delivering accurate and reliable information on personal finance and wealth management. Our goal is to simplify complex financial concepts and industry jargon, making finance accessible to all. With relatable content and practical advice, we empower individuals to make informed decisions and achieve their financial goals. Trust us to provide comprehensive guidance on financial planning, investment strategies, tax optimization, and wealth preservation. Join us on this enriching financial journey and let WealthMunshi be your trusted partner in securing a brighter future.

Leave a Reply

Your email address will not be published. Required fields are marked *