November 07, 2016

Have you opened a new account with any Mutual Fund?

Have you opened a new account with any Mutual Fund between 1 Jul, 2014 & 31 Aug, 2015?
Then you are required to provide FATCA self-certification about your tax residency as per current law..

FATCA” or Foreign Account Tax Compliance Act is a United States (US) law aimed at prevention of tax evasion by US citizens and residents (“US Persons”) through use of offshore accounts.
Pursuant to the Inter-Governmental Agreement (IGA) signed between the US & Indian Governments on 9th July 2015, FATCA became effective in India (retrospectively) for all new accounts opened from 1st July 2014.
There are different rules for “pre-existing” and new investors as per FATCA provisions –
New investors” are defined as those investors who are new to a financial institution (FI) having opened an account with the FI on or after 1st July 2014.
Further, all such new account holders need to certify their tax status to the financial institutions. In addition as per IGA provisions and as per clause 5.9.6 and 5.9.7 of the Guidance Notes issued by CBDT, in case of accounts other than depositories or cash value accounts, the financial institutions need to make reasonable efforts to obtain self-certification, particularly in those cases where after “US indicia” search, a positive match was found with any of the US indicia.
The IGA signed by India and US has a specific “alternate procedure” to handle all “new investor” accounts opened by a financial institution between 1st July 2014 and date of signing IGA. As per this clause, financial institutions were allowed one year to solicit tax residency self-certification from all investors who opened account in above period, failing which the accounts must be closed.

Thus, if you have opened new account/ folio with any Mutual Fund between 1st July 2014 and 31st August 2015 (i.e., with whom you had not invested prior to 1stJuly 2014), you need to provide a self-certification about your tax residency to the respective Mutual Funds for compliance with FATCA, failing which the account/s may have to be closed, as per current law.

On August 31, 2016, the CBDT has issued a press release extending the deadline of August 31, 2016 (for the time being) for obtaining the self-certifications.
However, it is in the investors to provide the same without any further delay.
Mutual Funds have been making sustained efforts to collect the FATCA self-certification from the investors who have opened new accounts / folios during the aforesaid period to confirm their tax residency. However, there are still a large number of investors who are yet to provide the same.
If you have opened new account with any Mutual Fund between 1st July 2014 and 31st August 2015 and have not yet submitted your FATCA self-certification form, please contact the respective Mutual Funds and submit the same asap.
You may also submit the same on-line through the respective Mutual Fund Registrars as per the links provided below:
www.camsonline.com/FATCA/COL_FATCAMainPage.aspx
Mutual Funds serviced by CAMS –
Birla Sunlife Mutual Fund; DSP BlackRock Mutual Fund; HDFC Mutual Fund; HSBC Mutual Fund; ICICI Prudential Mutual Fund; IDFC Mutual Fund; IIFL Mutual Fund; JP Morgan Mutual Fund; Kotak Mutual Fund; L&T Mutual Fund; Mahindra Mutual Fund; PPFAS Mutual Fund; SBI Mutual Fund; Shriram Mutual Fund; Tata Mutual Fund; and Union KBC Mutual Fund.
www.karvymfs.com/karvy/fatcahome.aspx
Mutual Funds serviced by Karvy –
AXIS Mutual Fund, Baroda Pioneer Mutual Fund, BOI AXA Mutual Fund, Canara Robeco Mutual Fund, Deutsche Mutual Fund, Edelweiss Mutual Fund, Goldman Sachs Mutual Fund, IDBI Mutual Fund, Indiabulls Mutual Fund, JM Financial Mutual Fund, LIC Nomura Mutual Fund, Mirae Asset Mutual Fund, MotilalOswal Mutual Fund, Peerless Mutual Fund, DHFL Pramerica Mutual Fund, Principal Mutual Fund, Quantum Mutual Fund, Reliance Mutual Fund, Religare Invesco Mutual Fund, Sahara Mutual Fund, Taurus Mutual Fund, UTI Mutual Fund
www.sundarambnpparibasfs.in/web/service/fatca/
Mutual Funds serviced by Sundaram BNP Paribas Fund Services –
Sundaram Mutual Fund and BNP Paribas Mutual Fund
Franklin Templeton Mutual Fund –
www://online.franklintempletonindia.com/aspx_app/Investors/fatca/Inv_FatcaDetails.aspx
Do you need update FATCA Contact us.+91 98400 44721

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