If you are investing in mutual funds, this news is very important for you to know. In fact, from June 30, a very important rule will change. According to this rule, those who do not link a PAN and Aadhaar card by June 30, will have their PAN card invalid, which will directly affect your investment in mutual funds. Let us tell you that about 20-30 lakhs of people who invest in Mutual Funds (MFs) have not linked their PAN with Aadhaar.
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Those who cannot link to Aadhaar by June 30 will be given Rs 10,000 under the Income Tax Act. The biggest problem is that your pan automatically becomes invalid or inactive.
A mutual fund cannot be invested with an invalid PAN
To invest in mutual funds, you have to go through two documentation process. Under the first process, it is necessary to get to know your customer or KYC. On the other hand, for the second process, it is necessary for the customer to have a valid PAN. If your PAN is invalid because Aadhaar is not linked, you will not be able to invest in mutual funds.
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30% of MF does not have PAN card connected with Aadhaar
According to mutual fund transfer company Computer Age Management Services (CAMS), there are about 20 lakh PAN numbers that are not yet connected to Aadhaar. That is, around 30% of PAN cards are not connected with Aadhaar. As per the Income Tax rules, it is mandatory to link Aadhaar with your PAN on or before June 30, 2021. If the PAN is not connected to Aadhaar, the PAN is considered inactive. In addition, KYC of mutual funds is also worthless.
So if you don’t link your PAN with Aadhaar, you won’t be able to make any new investments in mutual funds. You will not be able to take out a mutual fund. As per SEBI regulation, funds are only issued when KYC and PAN are valid.