{"id":8121,"date":"2017-04-28T01:45:08","date_gmt":"2017-04-27T20:15:08","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=8121"},"modified":"2017-05-25T22:36:10","modified_gmt":"2017-05-25T17:06:10","slug":"nps-fatca-declaration","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/nps-fatca-declaration\/","title":{"rendered":"How to Submit FATCA declaration for NPS to prevent it from getting Blocked?"},"content":{"rendered":"
\"How
How to submit FATCA declaration for NPS?<\/strong><\/figcaption><\/figure>\n

Several\u00a0NPS subscribers received SMS on April 27 from NSDL stating \u2013 “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”<\/p>\n

FATCA declaration for NPS can be done Online now – Click to Read!<\/a><\/strong><\/h3>\n

Later in the day subscribers also received from NPS Communications.cra@nsdl.co.in<\/strong>\u00a0on their registered email with Subject: “Submission of FATCA Self-Certification Form for your PRAN under NPS”. <\/strong>Have reproduced the mail below.<\/p>\n

\"NPS
NPS FATCA Self Declaration email<\/strong><\/figcaption><\/figure>\n

New email from NSDL:<\/h2>\n

A few hours back received below mail from NSDL. The accounts would not be blocked\u00a0on account of non-submission of FATCA Self-Certification.\u00a0PFRDA \/ NPS Trust will issue revised guidelines on FATCA shortly. So NPS subscribers should wait until further instructions.<\/span><\/strong><\/p>\n

\"Submission
Submission of FATCA Self-Certification Form for your PRAN under NPS – Account NOT to be blocked<\/strong><\/figcaption><\/figure>\n

NSDL handled this entire thing in worst way possible – some heads should roll!<\/span><\/strong><\/p>\n

What is FATCA?<\/h2>\n

FATCA is Foreign Account Tax Compliance Act<\/strong>, 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.<\/p>\n

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.<\/strong><\/em><\/p>\n

NPS FATCA Declaration:<\/h2>\n

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.<\/p>\n

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Only people who have opened NPS Account on or after July 1, 2014 are impacted.<\/strong><\/p>\n<\/blockquote>\n

But with tax incentive on NPS coming in 2014 there would lot of people who opened NPS account and would be impacted!<\/p>\n

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Also Read:<\/strong>\u00a0Should you Invest Rs 50,000 in NPS to Save Tax u\/s 80CCD (1B)?<\/a><\/p>\n<\/blockquote>\n

To comply subscribers would have to submit a self-certification (i.e. FATCA\/CRS Declaration) to NPS Trust.<\/strong><\/p>\n

Step 1:<\/span><\/strong><\/span> You can download the NPS FATCA Self Declaration Format<\/strong><\/span> by clicking here<\/a> or from the email you received.<\/p>\n

Step 2:<\/span><\/strong><\/span>\u00a0Fill 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:<\/p>\n

NSDL e-Governance Infrastructure Limited,<\/span><\/p>\n

1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,<\/span><\/p>\n

Lower Parel, Mumbai \u2013 400 013<\/span><\/p>\n

Also mention Self-Certification – FATCA\/CRS Declaration Form on the envelope<\/span><\/strong><\/p>\n

In case the above filled self declaration NPS FATCA form is not received before April 30, 2017 the NPS account would be blocked.<\/strong> The account can be activated only after subscriber submits the above form.<\/p>\n

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Also Read:<\/strong>\u00a05 Steps to Transfer EPF to NPS<\/a><\/p>\n<\/blockquote>\n

How to fill NPS FATCA Self Declaration Form?<\/h2>\n

The FATCA form is 3 page form divided in 4 parts.<\/strong><\/p>\n

Part I:<\/h3>\n
\"NPS
NPS FATCA Self Declaration Form – Part I<\/strong><\/figcaption><\/figure>\n

Part 1 asks for following information:<\/p>\n

Name of Subscriber:<\/p>\n

Permanent Retirement Account Number (PRAN):<\/p>\n

Date of Birth:<\/p>\n

1. Country of:<\/p>\n

a) Birth<\/p>\n

b) Citizenship<\/p>\n

c) Residence for Tax Purposes<\/p>\n

2. US Person (Yes \/ No)<\/p>\n

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.<\/strong> This hopefully would cover majority of NPS subscribers.<\/p>\n

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Also Read:<\/strong>\u00a0NPS Tax Benefit u\/s 80CCD(1), 80CCD(2) and 80CCD(1B)<\/a><\/p>\n<\/blockquote>\n

Part 2:<\/h3>\n

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.<\/p>\n

\"NPS
NPS FATCA Self Declaration Form – Part II<\/strong><\/figcaption><\/figure>\n
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Also Read:<\/strong>\u00a06 Changes in NPS Rules in 2016 & How it Impacts You?<\/a><\/p>\n<\/blockquote>\n

Part III:<\/h3>\n

Part III just requires your name, signature and date and is to be filled by everyone.<\/p>\n

\"NPS
NPS FATCA Self Declaration Form – Part III<\/strong><\/figcaption><\/figure>\n
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Also Read:<\/strong>\u00a0NPS \u2013 Maturity, Partial Withdrawal & Early Exit Rules<\/a><\/p>\n<\/blockquote>\n

Part IV:<\/h3>\n

Fill this part only if you satisfy conditions below:<\/p>\n

Name of the country in Part I is other than India and TIN or functional equivalent is not available, or<\/p>\n

US person is mentioned as Yes in Part I, and TIN is not available<\/p>\n

\"NPS
NPS FATCA Self Declaration Form – Part IV<\/strong><\/figcaption><\/figure>\n
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Download:<\/strong> Ultimate Tax Saving ebook with tax calculator FY 2017-18<\/a><\/p>\n<\/blockquote>\n

The subscribers would in this case have to provide any of the below mentioned as proof of citizenship and residency in India.<\/p>\n