Money Transfer to India and how the money transferred to India is taxed.
Yes, the person who is sending the amount from USA to India have has to pay the tax. The fees vary bank to bank according to the policies of the banks.I think Western Union is a quick way to send and receive money all around the world. Thank you!
@harleen These payment banks seem to be a good initiative only if they actually provide what they promise to give to the rural community. Banking has still not reached far flung areas and if such banks branches can actually make it possible and easy, it would be great. There are other popular payment banks also like Airtel Payments bank, Paytm Payments bank, Fino Payments bank. But, how does one differentiate as to which one to choose? I think all these are similar in functioning and benefits. Any idea on this.
Before we get into details, lets get some simple nomenclature right.
What is a Cheque: "Cheque is a negotiable instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument"
Drawer ,Payee and Drawee: Author of the cheque is called drawer and the person in whose favor the cheque is drawn is called payee and the bank on which the cheque is drawn is called drawee.
Cheque bounce is a legal offene under Negotiable instruments act 1881, If the drawer is individual then the proceeding will done under thesection 138 of negotiable instruments act If the drawer is a company then the managing director of the company will have to face the proceedings under the section 141 of negotiable instruments.
Below is the set of steps you need to do in case of cheque bounces
A demand note needs to be sent within 30 days of the date of bounce of cheque
Statement of debt
Call too drawer for the amount due
Information about the dishonour cheque with the help of the bank memo.
Statement sent to the drawer to pay the amount within 15 days or they will have to face legal proceedings.
If the drawer does not make the payment then one can file the complaint in the court.
For filing complaint the drawee has to submit various documents to the court:
Any agreement showing the deal between both the parties
Bill against the dishonour cheque.
Evidence of the creation of the debt against the drawer.
Bank memo stating the reason for the dishonouring of the cheque.
Copy of legal notice sent to the drawer.
Vakalatnama in favour of the lawyer.
After submission of the above statement the case is filed and proceedings takes place.
If found guilty, the defaulter is liable to be punished with monetary penalty twice the amount of the cheque or imprisonment for a term which may be extended to two years or both
This is a very informative post. The government should help the people who want to pay their taxes in time. The whole taxation process is full of voids. Those who don't pay the taxes pay a small amount as bribe to avoid the big amount. The government should put hefty penalty on such culprits.
Hi, Karvy has an updated registration process which is completely online and no hard copies of the documents are required.
They leverage Aadhaar Digital Signature to open an online account. They just need scanned copy of the bank cheque leaf to create the account.
What is c KYC?
cKYC is known as Central KYC, is a centralized registry for maintaining the KYC records of an individual digitally. The cKYC registry was launched July 2016, with an aim to reduce the level of documentation and KYC verification process involved in a financial transaction with different financial institutions including Banks, Insurance, NBFCs and Mutual Funds.
The cKYC eliminates the need for individuals to comply with KYC process with different financial institutions. The data stored in the central registry can be accessed by different financial institutions for the verification process on advance payment of fees to the CERSAI. CERSAI is the implementing agency of cKYC programme.
The cKYC process also includes the provision of Foreign Account Tax Compliance Act (FATCA) which enables the Indian Tax authorities to receive information from financial institutions. The whole KYC process is framed to prevent the money laundering through the system and bringing more people under the Tax net.
Benefits of cKYC
Eliminates duplication of KYC process at different financial institutions
Single point access for KYC needs for financial institutions
Real time access and notification of KYC update
Reduces time to complete a new financial transaction with pre-verified KYC process
It stores the data electronically and safeguards the KYC records centrally
Prevents unauthorised access and tampering with the data
How to check status online
To check the cKYC status of an individual online, one needs to visit the Karvy website and check the status with providing the PAN no. in the required field. The site will only provide the details on cKYC status whether he/she is registered or not and date of registration with the KRA.
The more comprehensive details of the individuals are provided to the financial institutions on their system on payment of fees.
Types of c-KYC
There are three types of accounts classified in cKYC:
Simplified or Low-risk account: Under this category, the account type is marked as "L" which means low-risk individual and are not able to provide the address proof in any of the 6 official documents which include Aadhar card, Voter ID, Passport, PAN, Driving License or Job card issued by MNREGA. They are given the option of submitting the proof through utility bills, not more than 2 months old( telephone, electricity bills), property tax receipts; saving bank account or post office savings account statements.
Small account: This account is marked as "S" and will apply to those individuals who don't possess any of the KYC documents. This account can be opened by providing an application with a self-attested photograph and thumb impression on it in the presence of the bank official. The account will be valid for 12 months and after will be extended after verifying that they have applied for the normal KYC. During this time the individual will have access to limited financial access from banks.
Normal Account: Those individuals who can establish their identity and submit proof of address in the 6 official documents including AADHAAR, Voter ID, Passport, PAN card Driving license, MNREGA Job Card falls under the category of Normal Account.
About the implementing Agency CERSAI
Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is the implementing agency for the KYC programme of the government. In this institute, the Govt. of India holds 51 percent share and rest with different public sector banks and National Housing Bank.
The objective of the company is to maintain and operate registration system in India under various Acts of the govt. and looked upon as a risk mitigation tool for financial institutes operating within the country to prevent multiple financing against the same property.
How to complete cKYC Registration process
One can complete registration process of cKYC by filling the form and submit the same with supporting documents to your Bank, financial advisor, Mutual fund office or with a KRA.
In cKYC form, it has few additional column for Mother's name, Residential Status and Occupational details which are not present in other KYC forms
There is an additional column for Details of Related Person. The information is provided under certain circumstances like Guardian of Minor, Assignee (for Life insurance policy) and Authorized Representative ( NRI has to appoint a representative who will act on his/her behalf). If you don't fall under this category, then skip and move to another column.
You can always take assistance from your financial adviser/entity to complete the form if you face difficulty in furnishing any documents or information.
After successful completion of the cKYC process, you will be allocated 14 digit Identification no. for future reference which will be sent to your registered SMS and email id and no physical mail will be sent. And, if your application gets rejected same will also not be intimated to you but you can approach your KRA for the same.
If in the case, there is any update request by the customer for change in the information provided, then the financial institution will initiate the process of change in the information of the customer as existing in the records of Central KYC Registry.
cKYC is a very progressive initiative by Government and RBI in the direction to make a single registry for verification, where all the data can be stored digitally and can be accessed by large no. of financial entities without the fear of getting tampered or unverified data. In long term, it will help the country to build more transparent and strong financial institutions. And, for customers, it will result in less paper work, faster approval and reduced time to complete the transactions.
FAQs on cKYC
Do I need to have cKYC, if I have already registered in the eKYC process?
eKYC is a biometrically based registration process which is used only for online transaction and cannot be used for physical transaction and transactions involving higher amount. It is necessary to complete the cKYC process if you are in cKYC.
I have registered in KYC process earlier, Do I need to do again for the cKYC?
No, your electronic copy of KYC data will be transferred automatically to the cKYC registry
Do, I need to pay fees for the process?
No. you don't need to pay anything for the process. The system is maintained by the stakeholders who have access to the data of the registry.
Is there any different template for the Individual and Legal entity?
Yes, there are two different templates. One for individual and other for legal (Non-individual)
After the banks and financial market regulators made the Know Your Customer (KYC) process mandatory for all individuals and organizations, many reputed and established organizations have started to offer KYC services on behalf of capital market players. Robust customer data collection and management has been the important aspect of these organizations. There are five registered KRA operating in India including NSE KRA.
Introduction to NSE KRA
The services of KYC Registration Agency are offered through its 100 percent subsidiary DotEx International Ltd. DotEx deals with data and info-vending products of NSE. Its three primary products & services are Data and Info vending (deals with the real-time data feed of NSE), NOW ( NEAT on WEB which provides risk management tools and trading platform to members) and KRA services.
The project on KYC services has been started on 6th March 2012 after DotEx received SEBI registration on 28th February 2012 to act as a KRA intermediary. The KYC services are provided through NSE registered financial intermediaries or advisors. DotEx incorporates the latest data management system to ensure Inter-operability among different KRA’s and to maintain the accuracy of data.
NSE KRA KYC Form
The KYC services are available for both Individual and Non-Individual entities. Individual investors are required to download the KYC form from its website and get it submitted to any NSE registered members or financial intermediaries.
Supporting Documents Required
Recent colour passport size photograph
Self-attested copy of PAN Card
Proof of Identity
Proof of Address
*All documents need to self-attested
The NSE KYC form is very easy to understand and fill in the details. In the form, basic details of the applicant are asked including the Tax residency status ( Applicant residing in India needs to select the Resident Individual option and NRIs are required to select the Non-Resident option).
NSE KRA doesn't provide e-KYC services for online KYC process to its clients.
For any details, Applicant can write to NSE KRA via email (email@example.com) or can call at 022 - 26598182 \ 8407.
NSE FATCA-CRS Declaration
The FATCA declaration status is provided by nsemf.com. The form is to be downloaded from the nsemf website and submit the filled in form to any NSE registered members or financial intermediaries.
The form is divided into two segments in which details of PAN, Adress Type, Place and Country of Birth, Income details and whether the applicant is a politically exposed person or not. In the second segment of the form, the applicant has to declare their Tax Residency status and if the applicant resides in other country and pays taxes in that country then he/she has to provide the details including Country of Tax Residency, Tax Payer Identification Number and Identification Type etc. The form should be duly signed and submitted to the concerned person for further verification with the supporting documents of income and tax residency status.
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