INCOME PROOF NOW MADE MANDATORY FOR Rs 10 LAKH INVESTMENTS IN POST OFFICE SAVINGS SCHEMES.
The Department of Posts has issued a Circular on May 25, 2023.
1) Brought all investments in post office schemes under stricter KYC/PMLA compliance rules to prevent misuse for terrorist financing/money laundering activities.
2)The circular has divided customers on the basis of risk perception as follows:
Low risk – Amount < 50k
Medium risk – Amount >50k but <10 Lakhs
High risk – Amount > 10 Lakhs.
3) The accounts relating to Politically Exposed Persons (PEPs) residing outside India shall fall under High-Risk Category.
4) As per the circular, the customer has to submit a copy of a document showing the source of receipts of funds for making investments.
5) Any of the following documents can be submitted as proof of the source of funds:
a) Bank/Post Office Account statement, which reflects the source of funds
b) Any one of the income tax returns filed during the last three financial years, which co-relates the investment in the gross income income .
c) Sale deed/Gift deed/Will/Letter of Administration/succession certificate
Any other document which reflects the income/source of fund
6) The circular further specifies that re-KYC must be done depending on the risk of the customer. For high-risk, medium risk and low-risk customers, the re-KYC must be done every two, five and seven years, respectively.
