Currently my father got a message from a broker to declare FATCA otherwise his account will be closed. FATCA is for NRI right? So my father is a residential Indian so he should ignore this message right? Kindly also share what is FATCA? Why it is needed?
hElLO tRaDeR,
FATCA – Foreign Account Tax Compliance Act signed by India with the United States.
FATCA declaration compliance is gaining momentum among Indian Financial Institutions.
The request for FATCA declaration received from any organization in which you have a financial relationship cannot be ignored.
In your case, you have to let the broker know whether FATCA reporting applies to you or not, (even if it does not) by filling up the Form sent along with the request correspondence.
Everything explained in detail on this link
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Even i have received an email from Zerodha's earlier demat partner IL&FS to complete the FATCA procedure or else they will close my account.
- Funny thing is I already have closed my demat account with them and opened a new one with Zerodha.
- Secondly, I was trading only intraday and not taken deliveries while my account was with IL&FS
- Further, I already have filed my return for f.y.2015-16, which is also processed by now by Income-Tax department.
Still do I need to submit FATCA details to IL&FS?
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