FATCA Compliance for National Pension Scheme (NPS)
Subscribers to the National Pension Scheme (NPS) are now required to complete the FATCA Compliance online. The option is available to the Subscribers to complete the compliance by logging onto the portal and submitting the required information. It is mandatory for the Subscribers who have subscribed to the scheme on or after 1st July, 2014 to be FATCA compliant. National Pension Scheme (NPS) is the retirement benefit plan for the Individuals aimed at providing better standard of living during the old age.
The online certification is also mandatory for the Subscribers who have already sent physical documents to CRA for the same purpose. Earlier, Central Recordkeeping Agency (CRA) had announced Subscribers need to send the hard copies of the documents for compliance but later issued a notification that it is not required for NPS. However, the new update is a welcome relief for many as Subscribers as they may easily complete the process online.
The Online Self Certification may be completed by following the steps mentioned below:
Subscribers need to log into their NPS portal interface (www.cra-nsdl.com).
Click on the “Transaction” option under main menu and select “FATCA Self Certification” option.
Provide the relevant information and Submit the “FATCA/CRS Declaration Form”
Click on the Declaration & Authorization and click “Confirm”.
An OTP will generated and sent on the registered mobile number.
Once the authentication is complete through the OTP, acknowledgment of FATCA compliance will be displayed.
Online Certification will simplify matters and smoothen the compliance process for the Subscribers.
As per the new norms all the Mutual Fund Investors and Bank account holders who have opened their account after 1st July 2014 are mandatorily required to comply with the FATCA requirements as per the disclosure agreement reached between India and US. This would enable respective countries to share the financial data of the individuals and avert tax avoidance malpractices.
For more details follow the link shared below: