Several NPS subscribers received SMS on April 27 from NSDL stating – “As a regulatory requirement, submit FATCA self-certification for your PRAN to CRA, else account will be frozen. For more details visit www.npscra.nsdl.co.in”
Later in the day subscribers also received from NPS Communications.cra@nsdl.co.in on their registered email with Subject: “Submission of FATCA Self-Certification Form for your PRAN under NPS”. Have reproduced the mail below.
A few hours back received below mail from NSDL. The accounts would not be blocked on account of non-submission of FATCA Self-Certification. PFRDA / NPS Trust will issue revised guidelines on FATCA shortly. So NPS subscribers should wait until further instructions.
NSDL handled this entire thing in worst way possible – some heads should roll!
FATCA is Foreign Account Tax Compliance Act, a law enacted by USA in 2010. According to this law, any individual who is resident of USA (citizens or green card holders) or financially connected to the US or have any tax residency in US have to declare all their foreign income and investment details to US Tax Authorities. The law was enacted to prevent tax evasion through offshore investments by US residents.
India is signatory of the above law and hence all the financial entities like Banks, Insurance Companies, Mutual Funds, Brokerages, etc have to furnish their client information to the Indian Government, which in turn would share it with US Government. In case you have no income connection with USA, you are not impacted but still need to give the declaration.
Unfortunately PFRDA the regulator for NPS did not bother to inform its subscribers about the FATCA requirement until the very last minute. But regulations being regulations this is what we need to do.
Only people who have opened NPS Account on or after July 1, 2014 are impacted.
But with tax incentive on NPS coming in 2014 there would lot of people who opened NPS account and would be impacted!
Also Read: Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?
To comply subscribers would have to submit a self-certification (i.e. FATCA/CRS Declaration) to NPS Trust.
Step 1: You can download the NPS FATCA Self Declaration Format by clicking here or from the email you received.
Step 2: Fill up the form (How to fill the form has been shown below) and send it to Central Recordkeeping Agency (CRA) for NPS at the following address:
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013
Also mention Self-Certification – FATCA/CRS Declaration Form on the envelope
In case the above filled self declaration NPS FATCA form is not received before April 30, 2017 the NPS account would be blocked. The account can be activated only after subscriber submits the above form.
Also Read: 5 Steps to Transfer EPF to NPS
The FATCA form is 3 page form divided in 4 parts.
Part 1 asks for following information:
Name of Subscriber:
Permanent Retirement Account Number (PRAN):
Date of Birth:
1. Country of:
a) Birth
b) Citizenship
c) Residence for Tax Purposes
2. US Person (Yes / No)
In case the answer for 1 above Country of Birth, Citizenship and Residence for Tax Purposes is INDIA, you just need to move to Part 3 for signature. This hopefully would cover majority of NPS subscribers.
Also Read: NPS Tax Benefit u/s 80CCD(1), 80CCD(2) and 80CCD(1B)
In case the answer for any of the above is not India or US Person status is YES, you need to provide Tax Payer Identification Number (TIN) or functional equivalent as issued in the specific country in the table.
Also Read: 6 Changes in NPS Rules in 2016 & How it Impacts You?
Part III just requires your name, signature and date and is to be filled by everyone.
Also Read: NPS – Maturity, Partial Withdrawal & Early Exit Rules
Fill this part only if you satisfy conditions below:
Name of the country in Part I is other than India and TIN or functional equivalent is not available, or
US person is mentioned as Yes in Part I, and TIN is not available
Download: Ultimate Tax Saving ebook with tax calculator FY 2017-18
The subscribers would in this case have to provide any of the below mentioned as proof of citizenship and residency in India.
In case you require any clarification or assistance with respect to the above, please contact Ms. Ranjana Chavan / Ms. Mamta Jadhav at 022-40904242.
The entire approach by NPS/NSDL to obtain FATCA declaration is going to create lot of issues for subscribers. I do not understand why this could not be done online as was done by Mutual Funds earlier. Also there is NO way subscribers would be able to send the FATCA self declaration forms on time. Even in case they do NPS CRA would not have the ability to process the deluge of forms! Anyway as subscriber send this FATCA Self declaration as soon as possible to prevent any problem in future.
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View Comments
Hi,
I tried to create NPS account online.
But FATCA section is confusing.
FATCA Details
– Country of Tax residency
– Address of Tax residency
– TIN number issuing Country
– TAX Identification number ( Its PAN number )
– Validity
– FATCA State
– FATCA City
– FATCA Zip Code
Few blog say in order to submit FATCA details you will require PRAN number. But Once will get PRAN number once NPS registration is complete. But for NPS registration itself FATCA details are mandatory.
Above process is cyclic with no proper guidance to proceed ahead.
what is fatca zip code
Hi,
I tried to create NPS account online.
But FATCA section is confusing.
FATCA Details
- Country of Tax residency
- Address of Tax residency
- TIN number issuing Country
- TAX Identification number ( Its PAN number )
- Validity
- FATCA State
- FATCA City
- FATCA Zip Code
Few blog say in order to submit FATCA details you will require PRAN number. But Once will get PRAN number once NPS registration is complete. But for NPS registration itself FATCA details are mandatory.
Above process is cyclic with no proper guidance to proceed ahead.
P.S: Already tried to reach 022-40904242, but no one respond.
same here
Yes i am also facing the same issue no one picking up the call or no response from the any one
022-24994296
sonukumars@nsdl.co.in
Relesh Patil
Manager
022-24994752
They are useless persons , not replying
Sir I m filling online FATCA but my details in first part in US person is already encircled on yes but I m an indian sohow can I chage no from yes before submit the part 1
Dear Amit,
Do you not find this application confusing. For instance, I am an NRI residing in the Middle East. So Part I -1c is Non- Resident. Part II b is not applicable as there are no personal income taxes and TIN (or equivalent). Part II (i) 2 is applicable to me and I sign the declaration.
The problem is with Part IV. I qualify under (a) i.e. Non-Resident and TIN not available. However, the declaration states "I confirm that I am neither a US person or a resident for Tax purpose in any country other than India, though..."
This is incorrect as I am a Non-Resident without a TIN issued by foreign country. So how can I sign Part IV?
Any guidance you can give will be appreciated.
i tried to submit fatca online ,but there is no option for online filling.there we are getting the process to fill but after clicking the option there is no option coming as they said.dated:-23/6/17
Can I submit FATCA through online ?
yes
How does one submit FATCA declaration for one's Atal Pension Yojana related PRAN#? As for that there is no NPS login per se?
You might get some email regarding the same when they are online ready!
I have APY account and I have PRAN no also. Should I also submit FATCA?if yes how? Online details of my APY accont is not available online
I think APY has become online now.
Why NSDL is not providing online option to submit FATCA declaration online? It is illogical that we can open NPS account through online but not able to submit these declarations in online mode!! Agencies like CAMS are providing online facility.
Agree - I think they would in some time.