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Friday 28 April 2017

Submit the FATCA declaration in For investments by April 30th, 2017

FATCA stands for Foreign Account Tax Compliance Act. . It is an intergovernmental agreement between the government of United States of America and Government of India.It is introduced in the USA in 2010 to prevent tax evasion through offshore investments that some US residents may have. As per this Act, financial institutions in many countries (all those with which the US has an agreement regarding FATCA) including India are required to disclose details of their client's income and if they are residents of the US .On 9 July 2015, India signed Model 1 Inter-Governmental Agreement (IGA) with the US IRS for implementation of FATCA.

FATCA/CRS Declaration:
FATCA compliance simply requires a declaration giving information such as:

  1. Name and Permanent Account Number (PAN)
  2. Type of address in KYC
  3. Place (city/state) of birth, Country of birth and Nationality
  4. Gross Annual Income or Net worth
  5. Occupation
  6. Whether Politically Exposed Person (PEP) or related to PEP
  7. Whether resident of another country
  8. Country of Residence, Tax ID number and Type

As per a Finance ministry release issued on April 11, 2017, all accounts/Folios with mutual funds, opened between July 1, 2014 and August 31, 2015 , must be FATCA compliant by April 30th, 2017. if you fails to do this before then financial transactions like purchase and redemption will not be allowed in that particular mutual fund account. It will be allowed only after the declaration.

Most of the fund given the online option to update the declaration. We can also update the declaration on registrar site like CAMS and KARVY. If we update on registrar site then it would normally update the declaration for all the MFs registered with it.



We need to also update it for our NPS account. For this we need to download the self-certification form and submit the duly filled up physical self-certification (along with evidence) to NSDL -CRA with signature on below address. 

      NSDL e-Governance Infrastructure Limited, 
      1st Floor, Times Tower, 
      Kamala Mills Compound, 
      Senapati Bapat Marg, 
      Lower Parel, Mumbai - 400 013 

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