In view of India’s commitment to implement the CRS on AEOI and also the IGA with USA, and with a view to provide information to other countries, necessary legislative changes have been made through Finance (No.Ģ) Act, 2014, by amending section 285BA of the Income-tax Act, 1961. The information to be exchanged relates not only to individuals, but also to shell companies and trusts having beneficial ownership or interest in the “resident” countries. To be transmitted “automatically’ annually. The CRS on AEOI requires the financial institutions of the “source” jurisdiction to collect and report information to their tax authorities about account holders “resident” in other countries, such information having The Multilateral Competent Authority Agreement (MCAA) on AEOI. The CRS on AEOI was presented to G20 Leaders in Brisbane on 16th November, 2014. Together developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI). In Tax Matters”, in order to combat the problem of offshore tax evasion and avoidance and stashing of unaccounted money abroad, requiring cooperation amongst tax authorities. On similar lines as FATCA, the Organization of Economic Development (OECD), along with the G20 countries, of which India is a member, has released a “Standard for Automatic Exchange of Financial Account Information Notably, in case of folios with joint investors, the entire account value of the investment portfolio willīe attributable under each such reportable person. US person, all his folios will have to be reported – including those where he may be a joint holder. Once a given investor is identified as a reportable person/ specified Further, FATCA due diligence is to be directed at each investor (including joint investor). Key information may trigger impact under FATCA. Any event which impacts customer tax status or change of The impact of FATCA is relevant not only at the point of ‘on-boarding’ of investors, but also throughout the life cycle of the investor account or folio. The text of the IGA signed between India and USA is available at : Download PDF The IGA between India and USA has become operational effective August 31, 2015. The IGA between India and USA was signed on 9th July, 2015, which provides that the Indian FIs will provide the necessary information to Indian tax authorities, which will then be transmitted to USA automatically. has entered into Inter-Governmental Agreement (IGA) with various countries. Since domestic laws of sovereign countries, including India, may not permit sharing of confidential client information by FFIs directly with On the accounts of to report accounts held by specified US Persons. FATCA obligates foreign financial institutions (FFIs), including Indian financial institutions to provide the US Internal Revenue Service (IRS) with information (“US Persons”) through use of offshore accounts. “FATCA” or Foreign Account Tax Compliance Act is a United States (US) law aimed at prevention of tax evasion by US citizens and residents With implementation of FATCA, will these mutual funds accept investments from US persons?
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