What is FATCA in India?

FATCA enables automatic exchange of financial information between India and the US. Indian financial institutions have to provide necessary information to Indian tax authorities, which will then be transmitted to the US.

What is FATCA in simple terms?

The Foreign Account Tax Compliance Act (FATCA) is a law that requires U.S. citizens living at home or abroad to file annual reports on any foreign account holdings they have.

What is FATCA and what are its implications?

“FATCA” means Foreign Account Tax Compliance Act of the United States of America (USA) which, inter alia, requires foreign financial institutions to report about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

What is purpose of FATCA?

The purpose of FATCA is to prevent U.S. persons from using banks and other financial institutions outside the USA to park their wealth outside U.S. and consequently avoid U.S. taxation on income generated from such wealth.

How do I know my FATCA status?

You can check the status of your FATCA registration by logging into your FATCA account and checking the account status displayed on the home page. The system will also generate automatic email notifications to the responsible officer (RO) to check the FATCA account when a registration changes.

How is FATCA enforced?

The FBAR is filed electronically through the Financial Crimes Enforcement Network’s BSA E-filing System. Form 8938 is due with your annual income tax return and filed with the applicable IRS service center.

What is a FATCA status?

The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments.

Who is US person under FATCA?

Broadly speaking, can include any US individual (e.g. US citizen, resident, green card holder, etc.) and/or US entity (e.g. US corporation, partnership, etc.) The term ‘Non-United States person’ means all clients that do not fall under the formal definition of ”United States person” under FATCA.