[update – 25 May 2017] NSDL is now allowing NPS subscribers to update their FATCA self-certification online. You can do this by logging into your NPS account on https://cra-nsdl.com/CRA/ and clicking on ‘FATCA Self-certification’ under the main menu of ‘Transaction’. The FATCA submission will be authenticated via an OTP that you will receive on your registered mobile number. This online self-certification facility is available to all Indian NPS subscribers.
Non-resident Indians or US citizens are still required to submit a physical FATCA self-certification to their Nodal office or CRA.
[update – 3 May 2017] As per the latest communication from NSDL, PRAN of NPS subscribers will not be blocked upon failure to submit FATCA self-declaration. Further clarifications on the same are awaited.
If you have invested in the National Pension System (NPS), you are now required to submit a FATCA declaration to the NPS Trust.
Foreign Account Tax Compliant Act (FATCA) is a US law that requires US citizens to report their non-US financial accounts to the US government. India entered into a FATCA agreement with US, under which investors in India have to self-certify and submit a FATCA form. In this form, you have to declare your country of birth, citizenship and residence for tax purposes. If you are a US citizen investing in India, you need to provide additional information like your Tax Payer Identification Number (TIN).
Read more about FATCA here.
Until recently, FATCA covered investments like mutual funds and fixed deposits. But now, it covers the NPS as well. Hence, NPS subscribers are required to submit a FATCA declaration if their Permanent Retirement Account Number (PRAN) was opened after 1 July 2014.
The NPS Trust is sending out emails to all NPS subscribers regarding the submission of the FATCA form. However, if you haven’t received the email, here is what you should do:
- Download the FATCA form from here
- Fill in the required details and attach any of the listed document proof
- Send this form along with the document proof NSDL e-Governance Infrastructure Limited, 1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013
- Remember to mention ‘Self-Certification – FATCA/CRS Declaration Form’ on the top of the envelope
The FATCA form has to be submitted before 30th April 2017. Failure to do so might result in your NPS account getting temporarily blocked. The NPS account will get unblocked after the FATCA self-declaration has been received.
You can read more about FATCA self-declaration for NPS subscribers on the NSDL website.
If you have any queries, reach out to a ClearTax expert.