FAQ's on FATCA / CRS

What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act. It requires foreign financial institutions (FFI's) to provide the Internal Revenue Service (IRS) with information on certain investments of US persons invested in accounts outside of the US and for certain non-US entities to provide information about any US owners.

Are there any other regulations similar to FATCA which will apply to HDFC Mutual Fund?

Yes, Common Reporting Standard (CRS) which is similar to FATCA, is a global level common standard for automatic exchange of financial account information. CRS has been developed by the OECD in close cooperation with the G20 countries and the EU. Under CRS, India has signed a multilateral agreement that would pave the way for effective exchange of financial account information on an automatic basis among signatory countries.

What is the purpose of FATCA and CRS?

The purpose of FATCA and CRS is to aid automatic exchange of information between bilateral treaty partner countries about account-holders / investors maintaining accounts in foreign jurisdictions and also to prevent citizen or resident of countries / territories outside India, whether individuals or specified entities, from using banks and other financial institutions to avoid taxation on income generated from all offshore accounts. FATCA and CRS both, obligates such financial institutions to report information about persons from these countries / territories having accounts with them.

How does the law of another country become applicable to me?

In case of FATCA and CRS, as mentioned previously, the Government of India has signed IGA and MCAA respectively for their implementation. Under the pact, India would be obligated to get its financial institutions to share financial account information of accountholders who are tax residents in any of the signatory countries. Likewise, India would also get similar information through financial institutions of such treaty countries.

Additional Information

URGENT & IMPORTANT:

Central Board of Direct Taxes, vide a press release dated April 11, 2017, had notified that all the investors who had opened folios between July 01, 2014 and August 31, 2015 were required to submit self-certification under FATCA by April 30, 2017. This notification requires us to restrict transactions, including redemptions, in the folios where such self-certification is not received till the aforementioned date. The transactions would be processed only if the self-certification is submitted by all the unit holders in such restricted folios.

Please click here to view Press Release.

Please click here to view FAQ's.

Applicants who have not submitted the Supplementary KYC and FATCA / CRS information, are requested to submit the forms provided below. Additionally, non-Individual investors have to submit Ultimate Beneficial Ownership (UBO) declaration form.

Individual investors can click here to submit the self-certification through online mode.

You may download the self-certification form and send the same to any of our Investor Service Centers (ISCs), alternatively mail it to the address of our Registrar and Transfer Agents M/s CAMS.

Forms