I received an email from by broker asking me to update some details regarding this, could somebody explain what is FATCA and why is it important that I fill the declaration form.
Foreign Account Tax Compliance Act (FATCA) is a law enacted by the US congress in 2010. It was introduced to deter US evasion of taxes by US citizens by hiding money in foreign countries. The Indian Inter-Governmental Agreement (IGA) with the USA for implementation of FATCA came into effect from August 31, 2015. FATCA enables automatic exchange of information between the countries who are signatories.
As per this new and existing Indian investors need to file the FATCA/CRS certification to comply with the norms. You need to submit a few details such as your city of birth, country of birth and the country of tax residency.
The original deadline to submit the certification was August 31st, 2016 but it was extended by the IT department later.Failure to do so by April 30th will lead to the suspension of accounts.
Refer to this circular by the Ministry Of Finance for more details.
To complete your one-time FATCA declaration, you have to log into your Q back office
The pathway for FATCA registration Q > Profile > Pre-filled Forms > Financial proofs.
You can also directly login to Q from Kite trading platform. Click on your Client ID in the right-hand top corner and you will see “Q - Backoffice” in your dropdown as shown below.
Once you reach your Profile page, select ‘Financial Proofs’ under Pre-filled forms.
Once you select Financial proofs, you will be redirected to the below page.
To complete your FATCA declaration - you have to enter your City of Birth, Country of Birth and Country of Tax Residency and then save these details.
If you are trading in Futures and Options(F&O) segment, you are also required to submit your income proof. This is mandatory only for people trading F&O, if you are trading only equity you don’t need to be concerned about income proof.
You must also fill your Income Range, Proof type and Upload the proof. Then save it.
You can submit any of the below mentioned documents as Income Proof:
Once you upload your Income proof, the status bar turns green.
This completes the process. If you wish to reset any of the entered information click on the"Reset" button and you will be redirected to the Form page again where you can enter all the information again.
I also got similar email. Not sure if I need to fill it or not.
You need to mandatorily submit it by April 30th.
Is this for all clients or for specific type of clients?
Yes but you have made the financial proof mandatory for people who dont have F&O enabled. Thats very sly !!
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Besides what Mr. Bhuvanesh has explained, I think our economy is politically and economically annexed to the US economy. So all Indian citizens also have to comply with their laws. When everything is globalized I do not think it is worthwhile to be irritated. All of us wish to be like Americans.
It is not now. FATCA and Income proof are two separate sections on that page.
Do we have to send financial proofs in Kite and Coin separate? I did in my Q and when I logged in on Coin, it is asking me my FACTA again.
