4.23.2 Validate ISA Void

This topic provides information about validating ISA void .

Distribution Void

You can maintain partial Voids and full amount void values at a unit holder distribution level using distribution void feature.

You can mark the distribution record as fully void or partially void by selecting Full/Partial option in ‘Void Status’ field.

If you select ‘Partial void’ option, then you can provide the Void Distribution amount and the void Tax amount. You can also amend this maintenance and change the status to Blank.

You can amend the distribution void amount and distribution void tax amount with effective date being the application date. The system will store the latest effective date record in the system as latest record which will be available for amending the void record.

The distribution void processing is only for reporting purpose and will not have any systemic impact on tax credit.

Tax Credit

You can process tax credit transactions by providing the details such as fund ID dividend payment number, account type. the system will default the tax credit date to the application date. Based on this, any tax deducted from the unitholder will be credited back to the unitholder.

In case, if the unitholder is marked as void or any transaction belonging to unitholder is marked as Void, then the tax credit will not happen the system will mark the record as error and log the details into a table.

Tax credit Reversal batch will trigger reversal of Tax credit reinvestments and Tax credit payments.

To reverse the Tax Credit Reinvestment transaction, you will have to select the Fund and Processing mode as reverse so that payment number are available for selection. On selection of payment number and entering remarks, you should run the reversal batch process.

Payment numbers which are gone through Tax Credit processing will only be available for reversal processing. If Tax Credit Reversal has been performed for a payment, such payment number will be available for Tax Credit processing again. However, such payment number will not be available for Tax Credit Reversal processing until such payment is go through Tax Credit processing subsequently

On Reversal of Tax Credit, the system will place reversal entries for tax credits reinvested and internally track reversal of tax credit payments. You should reverse after the paydate with the system treating the reversal of reinvestment transactions and payments in the same way the distribution reversal process does.

On successful reversal processing, if there are dependent transactions like redemptions, switch out and transfer out linked to tax credit Reinvestments, then such transactions will not be reversed and these details will be logged.

In case the dividend is reversed before tax credit processing, then such dividends will not come for Tax Credit Processing. In case dividend is reversed after tax credit processing, you will have to reverse the tax credit separately.

If Dividend is amended, then revised dividends will come for Tax credit processing. In such case, revised Tax amount will come for credit processing for dividend payments and reinvestments. If you amend the dividend after tax credit, in such case, tax credit will to be reversed and reprocessed.

Dividend Reversals

If dividend is reversed after tax credit, the dividend reversal or dividend reprocess batch will not trigger the reversal of Tax Credit transactions, because Dividend reprocessing and Tax Credit batch is independent activities. You will have to manually trigger tax credit reversal batch