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All intermediaries registered or appointed by the Pension Fund Regulatory and Development Authority must ensure compliance with tax reporting rules under the Multilateral Competent Authority Agreement and the Foreign Account Tax Compliance Act. The Government of India has amended Section 285BA of the Income-tax Act, 1961 and notified Rules 114F to 114H along with Form No. 61B under the Income Tax Rules, 1962. Intermediaries must complete necessary due diligence and fulfill the reporting requirements specified in the rules.
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[Image omitted. See the official document.]
पेेंशन निधि विनियामक और विकास प्राधिकरण प्रथम तल आईसीएडीआर भवन, प्लॉट न० 6, वसंत कुंज इंस्टीट्यूशनल एरिया, फेस - 2, नई दिल्ली - 110070 दूरभाष : 91-11-26897948 / 49 फैक्स : 91-11-26897938 वेबसाइट : www.pfrda.org.in
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY 1st Floor, ICADR Building, Plot No. 6, Vasant Kunj Institutional Area, Phase - II, New Delhi - 110070 Tel : 91-11-26897948 / 49 Fax : 91-11-26897938 Website : www.pfrda.org.in
CIRCULAR
CIR No./PFRDA/2015/24/COMT/1
Aug/28/2015
To,
All Intermediaries registered/appointed by PFRDA
Dear Sir/Madam,
Sub: Implementation of the Multilateral Competent Authority Agreement (MCAA) and Foreign Account Tax Compliance Act (FATCA).
It is brought to the attention of all the intermediaries that India has joined the Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information on June 3, 2015. In terms of the MCAA, all countries which are a signatory to the MCAA, are obliged to exchange a wide range of financial information after collecting the same from financial institutions in their country/jurisdiction.
Further, on July 9, 2015, the Governments of India and United States of America (USA) have signed an agreement to improve International tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA) in India. The USA has enacted FATCA in 2010 to obtain information on accounts held by U.S. taxpayers in other countries. As per the aforesaid agreement, foreign financial institutions (FFIs) in India will be required to report tax information about U.S. account holders/taxpayers directly to the Indian Government which will, in turn, relay that information to the U.S. Internal Revenue Service (IRS).
For implementation of the MCAA and agreement with USA, the Government of India has made necessary legislative changes to Section 285BA of the Income-tax Act, 1961. Further, the Government of India has notified Rules 114F to 114H (herein after referred as "the Rules") under the Income Tax Rules, 1962 and form No. 61B for furnishing of statement of reportable account as specified in the Rules. The Rule is available at http://www.incometaxindia.gov.in/communications/notification/notification%20no.%2062 %20dated%202007-08-2015.pdf
All intermediaries registered/appointed by PFRDA are advised to take necessary steps to ensure compliance with the requirements specified in the aforesaid Rules after carrying out necessary due diligence.
Yours sincerely, [Image omitted. See the official document.] Sumeet Kaur Kapoor General Manager
