FATCA stands for the Foreign Account Tax Compliance Act. It is a new piece of legislation to help counter tax evasion in the US. Introduced by the United States Department of Treasury (Treasury) and the US Internal Revenue Service (IRS), the purpose of FATCA is to encourage better tax compliance by preventing US persons from using banks and other financial organisations to avoid US taxation on their income and assets.
A significant number of countries worldwide have signed the inter-governmental agreements (IGAs) relating to FATCA. India is a signatory to the IGA which has resulted FATCA legislation becoming law in India.
It is a regulatory requirement wherein every Mutual Fund investor now mandatorily needs to provide the information and documentation towards compliance with tax information sharing laws, such as FATCA/CRS. For your convenience, you can submit the same online by using the PHUNDO platform. FATCA declaration is a mandatory one-time requirement for investments in Mutual Fund schemes. You need not submit this declaration on subsequent investments you make.
The initial investment date will be considered when applying a charge under the scheme’s exit load policy.
For example, under a lumpsum investment plan, if you had commenced your investment on 01 January 2018 in a scheme having an exit load upto 1 year, you would not be charged an exit load should you redeem from this scheme after 01 January 2019. However, an exit load will apply if you redeem from the scheme on or before 01 January 2019. In the case of a monthly investment (SIP) the initial date of the SIP instalment will be considered in levying an exit load charge. For example, if you have invested using the monthly investment option on 01 January 2018 with a 36-month instalment plan, each instalment date will be treated as the investment date. Therefore, if you redeem an investment of a SIP done on 01 January 2018 on 10 December 2018 an exit load will be charged. Similarly, if the 2nd SIP instalment took place on 01 February 2018 and you redeem your units on 01 January 2019 then your investment will be charged an exit load.
Do it yourself allows you the freedom to build your own investment portfolio. Choose from over 1000 Mutual Fund schemes across themes.
For example, you can invest in tax savings schemes under this module.
If you have specific invest needs such as short term money to invest or tax saving requirements, you can invest your funds under this platform.
For example, you may need to access your funds in 6 months hence, you can choose to invest in a fixed income scheme with an exit load less than 6 months. Liquid and ultra short bond funds are suited to meet this need.
Easy Pay are payment options presented to you to register you monthly instalment (SIP) debits from your bank account. There are three options under Easy Pay:-
Option 1: e-Mandate (Recommended for SIP registration)
The e-Mandate allows you to register your SIPconveniently and instantly. Using the OTP verification feature sent to your Aadhar linked mobile number, you authorize the registration of the mandate with your bank thereby ensuring your SIP is processed on the registered date for debit to your bank account. e-Mandates currently have a maximum limit of Rs 1 lakh.
Option 2: i-Direct Debit
This payment option allows you to register BSE as a biller in your internet banking system. A unique biller ID which is 15 digits will be sent to your mobile and email. This ID for example BSE000000012345, once registered under your bill payment system of internet banking will setup your SIP debit date as registered. Use this option if your mobile number is not linked to Aadhar or the value of your SIP/s is above Rs 1 lakh. Option 3: p-Mandate
This option is a paper based payment system. Incase you cannot use e-Mandate or i-Direct Debit options to setup your SIP/s, you always have the option of using the p-Mandate process. The important fields such as your bank account number, amount and SIP registration date will be pre-populated in a form. Download this form, sign it and scan it to firstname.lastname@example.org. Do note it takes 7-10 working days to register your p-Mandate with your bank. We will notify you once your p-Mandate has been registered.