How would you like to save on your taxes? If you are an individual and the sole owner of a non-corporate, savings or current account, you can take advantage of an income tax benefit by filing an application with Axis Bank to update your ownership details.
This can result in substantial savings when it comes time to file your income tax return each year because it will allow you to declare yourself as the only beneficial owner, thereby avoiding any double taxation on income earned through this account.
Axis Bank Beneficial Owner Program
Banks in India are legally obliged to take reasonable measures for identifying and verifying their customers. In accordance with a new regulation notified by RBI, banks have introduced a new Customer Due Diligence (CDD) procedure called Know Your Customer (KYC).
One of its components is beneficial ownership identification and verification, which is applicable to all customer types including corporate customers.
To facilitate our Corporate Customers with respect to beneficial ownership verification, Bank has launched ‘Beneficial Owner Program’ that enables our corporate Customers to complete Know Your Customer (KYC) through their existing bank account in Axis Bank at nominal cost.
Why Should You Update?
Under PMLA Rules, every person who is either a beneficial owner or an immediate relative of a beneficial owner or a major shareholder or connected in any manner with any person, who is a beneficial owner shall be required to update his KYC information with Axis Bank on an annual basis.
In case of non-individual accounts, if no updation details are provided, your account will cease to be operational for transactions. In such a case, you would have to visit Axis branches and provide us updated details as mentioned below.
How Do I Know If I Need To Update?
It’s important to know if you are an individual or a business. If you’re an individual and in control of your account, Axis send statements and other communications to verify KYC.
But there are also rules that require businesses with multiple owners to keep their own information up-to-date as well failure to do so could result in your account being restricted until further notice. Therefore, it’s crucial that even sole proprietors update their information when necessary.
How Do I Update?
In order to update your ownership details, you’ll need to visit any Axis Bank branch or contact our Customer Support Team. On visiting a branch or contacting our Customer Support Team, you will be required to provide supporting documents for changing ownership of your account(s).
Your signatures on these documents along with a photograph of yourself will be captured at an Axis Bank branch and uploaded on their records. You can also scan and upload these documents.
You should allow at least 7 business days after uploading documents before proceeding further. Once the bank has updated your ownership information, bank will send you confirmation via SMS and email that includes a link to change your Online Banking Profile.
What Can Happen If I Don’t Update?
If you’re an individual and don’t update your Beneficial Ownership details with Axis Bank, we may need to close your accounts.
This means you can’t access your money if you still have an active Savings or Current Account with Axis at that time. You will be able to withdraw funds from any of these accounts up until the day before closure.
Axis Bank’s Commitment To Customer Security
As part of their ongoing efforts to enhance customer security, they are updating their beneficial ownership information. This update is required by banks under Anti-Money Laundering (AML) rules.
Every account holder of a Non-Individual Current or Savings Account must complete and submit a Beneficial Ownership Form within 30 days from 1 April 2018, failing which his/her accounts may be frozen.
How Will The Changes Affect Me?
As per RBI’s master circular, Axis Bank is no longer allowing one person to hold more than 1 account with them. If a single customer has more than 1 current or savings accounts with axis bank.
They would like you to consolidate all your accounts into a single account which will be held by an individual of your choice.
It is pertinent that you provide information about your nominee who will be holding these bank accounts as beneficial owner/account holder under your name.