| Log in

India may sign US tax compliance law FATCA on Thursday

By PTI
07 July, 2015

India is likely to sign the inter- governmental pact for the US tax compliance law FATCA on Thursday, a move that will help it fight tax evasion.

Foreign Account Tax Compliance Act (FATCA) is aimed at combating possible tax evasion by Americans through financial entities of other countries.

The pact is likely to be signed by Revenue Secretary Shaktikanta Das and US Ambassador Richard Verma on July 9 here, sources said.

Under FATCA, US government has Inter-governmental Agreement (IGA) for sharing of information with various countries where American individuals and companies have accounts and other assets.

As per the FAQ released by the Finance Ministry on the new black money law, India is expected to start receiving information through Automatic Exchange of Information (AEOI) route under FATCA from USA later in the year.

FATCA compliance will cover all new accounts opened by Indian Financial Institutions from July 1, 2014 onwards.

Further, they would be obliged to share data with the government in respect of all new accounts opened from July 1 till December 31, 2014, to enable the government to share this data with US by September 30, 2015.

The financial sector regulators might also publish detailed guidance for implementation of FATCA.

If a financial institution does not comply to FATCA, it would have to pay 30 per cent penalty tax on all its US revenues, including dividend, interest, fees and sales.


View Comments
India-US sign pact under FATCA to combat tax evasion

India-US sign pact under FATCA to combat tax evasion

PTI 2 years ago
India and the US today signed a tax information sharing agreement under a new US...
India to sign inter-governmental pact for US tax compliance law FATCA early next month

India to sign inter-governmental pact for US tax compliance law FATCA early next month

PTI 2 years ago
India is likely to sign the inter-governmental pact for the US tax compliance...
FATCA: Impact on domestic funds

FATCA: Impact on domestic funds

Prashant Kataria 2 years ago
Much ink has been spilt of late over a United States (‘US’) federal law...
1 Comment
Shailesh Prabhu . 2 years ago

I am banking with HSBC India. While opening an FD online, by moving money from my Savings a/c, I was not granted the 0.5% additional interest. They insisted that I need to go to the branch and sign the FATCA declaration. I refused to sign this saying that this was not mandatory on me as an Indian citizen. Can someone comment on this as to why an Indian citizen holding an account in a bank operating in India needs to sign FATCA. HSBC has still not been able to give me a clear reply.

India may sign US tax compliance law FATCA on Thursday

Powered by WordPress.com VIP