What is FATCA declaration in India?

FATCA, or Foreign Account Tax Compliance Act, is its full name. From what I know, FATCA is a tax regulation that the US government passed in 2010. It is to obtain data from other nations regarding investments made by US people in those nations. This guide is all about what is FATCA declaration in India.

What is FATCA declaration India?

Basically, FATCA seeks to increase disclosure and reduce tax cheating. The IRS wants to detect and stop tax avoidance by keeping track of revenue from foreign holdings. FATCA was accepted by the Indian government in 2015. NRIs who live in the USA and make investments in India are required to voluntarily report their compliance with FATCA. According to the Income Tax Rules of 1962, they can do this by using Form 61B. The self-declaration would subsequently be verified through proper research by financial firms in India. Now you know what is FATCA details in NPS.

What should you do to make your NPS account FATCA compliant?

• First, you must click on the following link to access the NSDL website and complete the FATCA online approval process.

• Next, you have to choose FATCA compliance from the variety of choices.

• A new tab for self-certification will appear on the website. 

• If you want to apply, click here and enter your PRAN number.

• You must now complete the FATCA declaration form with your name, PAN number, nationality, address, birthplace (city or country), profession, and income. 

• If you are a citizen of a different country, you should additionally provide your tax residency number before clicking the "submit" button.

• You must sign the declaration and permission by checking the box.

• Finally, an OTP will be delivered to the entered mobile number. 

• You must verify to submit the online NPS FATCA self-declaration as an NPS member.

• On the page, an acknowledgement of FATCA certification will appear. 

• Keep a record of the NPS FATCA verification acknowledgement number for evidence.

I hope you understand now what is FATCA declaration.