Quick Summary
CA Chikkerur CR writes an Open letter to PM Narendra Modi on DIR 3 KYC requesting the PM to either remove the penalty of Rs 5000 on DIR KYC and allow Annual filings to report financials or remove DIR 3 KYC as an annual ritual form forever. Read the official letter below: Dear Sir PMO India Narend
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The letter requests Prime Minister Narendra Modi to either remove the Rs 5000 penalty on DIR 3 KYC filings or scrap the DIR 3 KYC form as an annual requirement.
DIR 3 KYC was introduced to identify real individuals as directors and link their identities with Aadhaar, helping to combat shell companies and black money.
The criticism is that making DIR 3 KYC an annual exercise with a Rs 5000 penalty is a "stupid and worst policy" and "day robbery" by the MCA, especially when only OTP verification is usually needed.
The Rs 5000 late fee for DIR 3 KYC filing can prevent companies from filing their annual financial statements (AOC 4 and MGT 7) on time, causing further issues for genuine businesses.
The letter suggests that if DIR 3 KYC is to continue, the penalty should be removed and annual filings should be allowed to report financials, or the form should be removed as an annual ritual altogether.
CAclubindia
