Financial

Prevent NRIs’ PAN from being declared inactive

PANs not linked to Aadhar will be deactivated from April 1, 2022 leading to suspension of operations in the bank accounts, securities/MF accounts linked to such PANs. The tax department has not clarified how they will distinguish PANs of NRIs/OCIs or other persons who may not be eligible to apply for Aadhar and keep such PANs active. The tax department has not provided any facility for NRIs/OCIs to keep their PANs activated by marking themselves as ineligible for Aadhar. Deactivation of PANs will lead to serious consequences for affected individuals and the Income Tax department owes it to them not to wait till the last minute and to come out with a solution well in time. Harsh Roongta’s article in Business Standard today where he outlines that these are not the only tax travails faced by NRIs/OCIs.

Now, make central KYC registry fully operational

Ease of doing business rankings enjoys the govt’s attention for obvious reasons. “Ease of living” for citizens does not get the same attention though it can have a high impact on day to day lives of citizens. Many structural reforms have not delivered simply because the last 5% of the work has been dragging for years even though 95% of the hard work has already been done. Electronic toll collection that has not resulted in any significant reduction in pile up before toll booths is a prime example. In the financial sector the Central KYC registry has been in place since 2016 but lack of accountability has ensured that the benefits from this path breaking reform is still awaited while lots of inconvenience is being caused to citizens. Some work has also happened on bank account portability and loan portability without any tangible benefit on the ground. Harsh Roongta’s article in Business Standard.

Assess your advisor on long-term performance

As an advisory firm we get asked by prospective clients about the indicative returns that they can expect. In this article in business standard, using cricketing analogy, Harsh explore why that is such a counter productive question. The headline is a little misleading. Assess your advisor by how comfortable you feel on your journey towards achieving your financial goals – not by how much returns have been achieved. There is no use achieving high returns if your goals are not achieved. Comments welcome

Scroll to Top