Why do I need to complete a FATCA form?

The purpose of FATCA is to prevent US persons (see glossary) from using banks and other financial organisations to avoid US taxation on their global income and assets. HSBC will therefore report information to the IRS or local tax authority on all accounts held directly or indirectly by US persons.

Do Indian banks report to IRS?

FATCA & CRS In India Many banks in India report to the IRS, including: ICICI, SBI, BOI, HDFC, Axis and HSBC. Therefore, if you have U.S. status (H-1B, L-1, Green Card or other U.S. status, and you have foreign accounts, assets, or income — it is important you have a basic idea of your FATCA reporting requirements.

Is FATCA mandatory in India?

The Indian government agreed to implement the FATCA in 2015 by way of inter-government agreement between India and USA. To achieve this, the Indian government made it mandatory for all NRI investors from the US to self-declare FATCA compliance through Form 61B, as per Rules 114F and 114H of the Income Tax Rules, 1962.

Is FATCA details required for Indian citizens?

In India, the government agreed to FATCA in 2015. Under this agreement, NRI living in the USA and investing in India need to self-declare FATCA compliance. They can do so using Form 61B, as per the Income Tax Rules, 1962.

Is fatca required for Indian citizens?

Key Takeaways: Any NRI living in USA and investing in Indian assets will have to adhere to the Foreign Account Tax Compliance Act (FATCA) laws. FATCA also requires a self-declaration from NRIs living in the USA while making investments in India.

How does the FATCA affect Indian citizens in the US?

FATCA doesn’t affect existing tax rights of US citizens in India or Indian tax residents in United States. Nor does it require reporting agencies to act as tax collectors for IRS.

Do US citizens in India need to report foreign income?

US persons residing in India will continue to report foreign income under FBAR. They can disclose previous overseas money under Overseas Voluntary Disclosure Program (OVDP) 2014. FATCA doesn’t affect existing tax rights of US citizens in India or Indian tax residents in United States.

How to check if your bank account is FATCA compliant?

Check existing accounts to confirm their FATCA status. Ask for documentation and extra information from current customers. Register themselves with Indian Tax authorities (CBDT) and Internal Revenue Service (IRS) portal under the inter-government agreement signed by India and United States.

What is the purpose of the FATCA Act?

FATCA is an act that focuses on instances of deliberate tax evasion by US citizens/residents on income generated at overseas locations. This means parking funds outside US using foreign banks or failing to disclose assets and investments owned abroad, including in country of origin, to avoid paying taxes to IRS.