Why this harassment? ‘Shark’ Anupam Mittal demands KYC reforms, IT dept responds

Founder of India’s major matrimonial site ‘Shaadi.com’, Anupam Mittal on Thursday (Feb 29) took to social media platform X to express his frustration over the cumbersome process of know-your-customer (KYC) paperwork. Mittal, who also appears on Shark Tank India, urged the government and the country’s Finance Minister Nirmala Sitharaman to simplify the process for angel investors and startups. In thelong post, Mittal also tagged X accounts of Income Tax India, Sitharaman as well as the Prime Minister’s Office (PMO).

“While we talk about being a startup nation, we need policy making that keeps up,” Mittal wrote.

“Every year, team is spending inordinate amount of time sending KYC info to startups who in turn are coordinating with multiple angels to get KYC paperwork filed with Income Tax India, when they should be focusing on building great businesses. Why this harassment?” the ‘shark’ asked.

“Income Tax India already has all our PAN numbers and many are registered investors. Madamji dekhiye pls (Madam, please look into it), it’s an unnecessary waste of time that sucks up countless unproductive hours of our country’s brightest,” Mittal concludes.

Response from Income Tax India

Responding to the post, Income Tax India asked Mittal to share his “specific issue/query” via email so that “our team can get in touch with you.”

Replying to this response, Mittal highlighted that it was not a specific issue but applies to anybody making investments in private companies.

“Thx for your response but It’s not a specific issue .. it applies to anybody making investments in pvt cos. Every year the co has to collect KYC docs from all its investors (which is quite cumbersome) and submit to the IT dept. Don’t understand the point since PAN and several other details are already shared at time of investment.What is the value of this unnecessary paper-work?” Mittal wrote.

In the end, Mittal suggests, “Aapko jo chahiye, backend se kheench lo” (Whatever you want, just fetch it from the backend).

Response from X users

Mittal’s post on X generated massive interest among users, with many of them agreeing with his views regarding KYC reforms.

“It's quite ironic that the folks at the tax department ask us for copies of previous year tax returns. They have everything already, it’s puzzling why they ask for these details. Repeatedly. Sheer waste of time,” wrote one user.

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“Thanks for speaking up and taking a stand. Rules and regulations are for the people and their nation's well being. Balance is required from both the ends. Startups and small businesses should be allowed to grow rather than having just two big business groups,” wrote a second.