Page 21 - Banking Finance July 2020

MUTUAL FUND

about the winding up of schemes at special leave petition in Supreme Court lately. While some fund houses only
every step when it shuttered the debt that the winding up of the schemes allow you to check the transaction sta-
schemes on 23 April citing severe illi- was done after taking appropriate per- tus, get your account statement and
quidity and redemption pressures due missions from Sebi. perform non-financial services, some
to the coronavirus pandemic. The Khambattas sought information AMCs also offer to invest in lumpsum
The RTI query was filed by the pertaining to the date on which the mode or through SIP via the widely
Khambatta family, an investor in the permission for winding up of the used messaging app.
Franklin Templeton funds and petition- schemes was applied for, the date on Axis mutual fund has joined the league.
ers in the Gujarat high court case that which it was granted and documentary
contended that the asset manager's evidence of any deliberation on the The AMC has recently launched its
decision to wind up the schemes re- permission. WhatsApp services.
quired the consent of investors. The Chatbot services through
"Sebi has not granted any such permis-
The petition led to a stay on the wind- sion to Franklin to wind up the said WhatsApp allows you to check the Net
ing-up process on 8 June. This petition, schemes," Sebi said in the RTI response Asset Value (NAV) of the funds. You can
along with three others, are being in the first week of August. also get the valuation of your portfolio
heard daily by the Karnataka high with Axis Mutual Fund. You can also
court for quicker resolution of investor request an account statement on your
grievances against the asset manager. Axis Mutual Fund launches registered email id. The service also
WhatsApp services
In the RTI query, the Khambatta fam- allows you to check the status of your
ily said Franklin Templeton had claimed Many mutual fund houses have purchase or redemption transaction
before the Gujarat high court and in a launched their services on WhatsApp with the AMC. T

India first nation to adopt randomised faceless assessment

Taxpayers will no longer be attached to a specific territory or office for assessments as the Central Board of Direct
Taxes has instead started a faceless, randomised and completely electronic assessment scheme, eliminating all hu-
man interfaces. India will perhaps be the first country to implement such a system, CBDT chairman PC Mody told ET,
adding that it will reduce litigation and unnecessary irritants to taxpayers, while allowing both taxpayers and taxofficers
to continue to work from home amid the rising number of Covid-19 cases in India.
"We perceived our roles as tax enforcers hitherto… We want a total paradigm shift and we want to be tax facilita-
tors," Modi said, adding that the effort was to make the compliance process easier and ensure objectivity.
Under the new system, taxpayers won't have to visit territorial jurisdiction tax officers or the income tax department
on receiving income tax scrutinyor assessment notices. "The whole system was earlier loaded with individual discre-
tion and subjective judgment of an individual officer, resulting in some sort of an inconvenience to the taxpayer,"
Modi said.

The shift encompasses setting up several units or teams that will assess, review and verify tax demands or orders at
the draft stage, before they are issued to taxpayers. A specialised technical unit will provide assistance in cases requir-
ing legal, economic or business-related expertise.
Modi said the shift to the new system would lead to a significant reduction in the pendency of tax assessments and
audits because the system would flag any unwarranted action or delay. The change would also involve an overhaul of
the existing cadre system, reorientation and a total change of mindset for the tax authorities, which Mody said was
the need of the hour.

So far, 58,319 cases have been assigned through the automatic system, keeping them away from geographical juris-
dictions, of which 7,116 cases were disposed of without any additions. In 291 cases, additions were proposed to be
made and have been submitted to the risk management unit.

BANKING FINANCE | JULY | 2020 | 21