What an Indian need to know about FATCA/CRS -Why is your Mutual Fund co.,stock broker or bank asking about details on Foreign Account Tax Compliance Act (FATCA) or Common Reporting Standards (CRS)
The Foreign Account Tax Compliance Act (FATCA) - is a legislation introduced by the United States (US) Department of the Treasury and Internal Revenue Service (IRS) to prevent US persons from using non-US accounts and non-US businesses to avoid US taxation on income generated from such wealth and assets. Similar to FATCA, the purpose of CRS is to aid automatic exchange of information between bilateral treaty partner countries about accountholders/investors maintaining accounts in foreign jurisdictions. FATCA / CRS obliges banks and financial institutions to report information about such account holders having accounts with them. You are therefore requested to provide the required confirmation and comply.If you have a citizenship of a country other than india or have dual citizenship, then you need to talk to your bank/stockbrocker co./bank to provide some details.
Reporting requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) can be found on RBI website here: