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FATCA or Foreign Account Tax Compliance Tax is a US law aimed at obtaining details about the overseas assets of US citizens and tax residents. Under a treaty with India, Indian investors have to provide their tax residence details for various investments such as bank accounts, mutual funds and NPS (National Pension System).
What is NPS
The National Pension System (NPS), earlier known as New Pension Scheme is a pension system open to all citizens of India. It is also open to NRIs, provided that they are Indian citizens. The NPS invests the contributions of its subscribers into equities and debt and the final pension amount depends on the performance of these investments.
Any Indian citizen from the age of 18-65 can open an NPS account. The NPS matures at the age of 60, but can be extended till the age of 70. Partial withdrawals up to 25% of your contributions can be made from the NPS after three years of account opening for specific purposes like home buying, children’s education, or serious illness.
Also Read : NPS Returns: Calculation and Interest Rates
How to provide FATCA Details in NPS
You can do this online at enps.nsdl.com or physically by submitting these details to the nearest branch of your PoP (Point-of-Presence). You can find a list of PoPs here.
- Specify whether you are a US person – this includes all tax residents of the US as well as US citizens who may be tax resident abroad. If you are either a US person or US tax resident, skip to point 5 below. You would be a US citizen if you are born in the US or have become a naturalised citizen of the US. You can be tax resident in the US, even if you are not a US citizen if you live in the US.
- Specify whether you are a tax resident of a third country (neither US nor India). If you are a tax resident of a third country, skip to point 5 below.
- You are an Indian tax resident if you have spent more than 182 days in India in a the relevant financial year. Note that you can still be a US person if you are a US citizen who is tax resident in India. If you are an Indian tax resident (and not a US person) mention the details in point 4 below.
- If you are an Indian tax resident, you only need to mention your PAN number provided by the Income Tax Department.
- If you are a US person/US tax resident or a tax resident of a country outside India, please provide your address in that foreign country, your tax identification number in that country and documentary evidence for the same, as shown in the form below.
