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”
FATCA declaration for NPS can be done Online now – Click to Read!
Later in the day subscribers also received from NPS [email protected] on their registered email with Subject: “Submission of FATCA Self-Certification Form for your PRAN under NPS”. Have reproduced the mail below.
New email from NSDL:
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!
What is FATCA?
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.
NPS FATCA 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
How to fill NPS FATCA Self Declaration Form?
The FATCA form is 3 page form divided in 4 parts.
Part I:
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)
Part 2:
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:
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
Part IV:
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.
- Passport
- Election ID card
- PAN Card
- Driving License
- UIDAI Letter
- NREGA Job Card
- Govt. Issued ID card
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 Problems:
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.
it should be made online since it will difficult to submit the forms in time
Agree but unfortunately this is not how government organizations work 🙁
I am a govt. Teacher in jharkhand.I join January 2016. Will I submit fatca ? It is necessary or not? If yes than How it possible to send in one day.
I am not sure if government employees with NPS need to submit this FATCA form. The reason being as they are employed by Government, they are bound to be Indian citizens. You may want to ask the same in your office from accounts or HR department.
Do I need to submit a FATCA Dealaration ?
Yes if you are NPS subscriber after June 2014
declaration form must be submitted ?
Yes if you are NPS subscriber after June 1 2014
I am Indian by birth, by citizenship and for tax purpose should i sing on form iv and attach the documents mentioned
Not required. Only Part 1 & 3 needs to be filled
My 1 part answer India. What also documents froof attach
As per instructions from NSDL no document is required
My answer is 1 part India . Can I fill up also 4 part fill up
Only Part 1 & 3 is required
Dear Mr Amt,
I am presently working in Qatar. In the Part 1 (c) Residence for Tax Purposes what I have to mention and also Part 2
It would be country where you work
Should APY account holders send the fatca form to same place or to bank?
Same address as mentioned in post
Shall I signature in the part 4 of the nsdl fatca self declaration form
If you are Not Indian or tax status in not indian
Dear amit ji
I’m indian and central government employee
I can sign in part 4 Plz reply yes or no
Not required
Do I have to send any document?
In the first part my all answers are same India.
Not required
I have just came to US last month for first time in my life so what should be my status?
Indian
Dear Sir,
Is it mandatory for Indian citizen too
They need to submit the declaration ????
yes
okie thank you sir
Sir do we need to submit the documentary proof and sign
under this clause
“I confirm that I am neither a US person nor a
resident for Tax purpose in any country
other than India, though one or more
parameters suggest my relation with the
country outside India. Therefore, I am
providing the following document as proof
of my citizenship and residency in India. ” ???
Is there any way to submit online…..?
Not yet
I am Indian and central government employee
part 4 necessary for me Plz reply
no
Thanx a lot Amit.
Just one question. I m mentioned only India. Should I enclose any document?
no