Debt MFs New Tax Rules
The Finance Bill, 2023 has proposed an amendment in the income-tax laws w.e.f. April 1, 2023 whereby investments in Specified Debt MFs (equity exposure of not more than 35% of total corpus in domestic equity shares) will be treated as short-term capital assets.
The proposed amendment will have the following impact –
1) Fresh investments made on or after April 1, 2023, will not get benefit of cost indexation and concessional long-term capital gain tax rates
2) Gains will be treated as short-term capital gains by default and taxed at slab rates irrespective of the holding period
There will be no impact on existing / new investments made up to March 31, 2023.
Extension of effective date for PAN Aadhaar linking
As per the CBDT notification dated Mar 28, 2023, date for linking the PAN and Aadhaar has been extended till 30 Jun 2023. Non compliant PAN(s) will become inoperative with effect from 01 Jul 2023.
Following categories are exempted from Aadhaar-PAN linking
- NRIs
- Not a citizen of India
- age > 80 years as on date
- state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR
To check the status of linking of PAN with Aadhaar
To link PAN with Aadhaar
Extension of effective date for Mandatory Nomination
- As per SEBI’s Circular on Nomination for Mutual Fund Unit Holders, dated Mar 28, 2023 – with regard to freezing of folios, shall come into force with effect from 30 Sep, 2023 instead of 31 Mar, 2023.
update the details ONLINE now on the KFIN MFS website (old Karvy)
update the details ONLINE now on the CAMS website
Regulatory implementation on 01 Apr 2023
The other two regulatory implementations, mentioned below are still in force, and will be implemented with effect from 01 Apr 2023.
- Two-Factor Authentication for inflow transactions in units of Mutual Funds
- Freezing of Folios without Pan / PEKRN
