The full form of FATCA is Foreign Account Tax Compliance Act. It is a tax law introduced in the United States to combat tax evasion and promote openness among nations about the resources earned by US taxpayers in foreign countries. As US taxpayers you must be FATCA compliant and self-certify yourself in other countries regarding the investments they have made in the FATCA form. This is what is FATCA state in NPS.
Just like other countries, the government of India has agreed to FATCA in 2015. As per the agreement, NRIs living in the USA and investing in India need to self-declare FATCA compliance. This can be done by filling up form 61B as per the Income Tax guidelines. Indian tax institutions run the due diligence and checks upon the self-declaration. This is what is FATCA state in NPS for Indian.
FATCA is also applicable to PIOs working in the US. Investments such as fixed deposits, National Pension System, mutual funds, PPF, stocks, capital gains, and bank interest should be declared in the FATCA self-declaration form. Assets that do not come under FATCA are house properties, antiques, cars, jewellery, and collectables.
If you fail to submit FATCA state in NPS India your bank account can get frozen which may lead to the suspension of investments in fixed deposits, mutual funds, the National Pension System, PPF etc.
I hope your doubt regarding what is FATCA state in NPS was cleared.
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What is FATCA state in NPS?
disha
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2022-10-20T10:29:39+00:00 2022-10-20T10:29:40+00:00Comment
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