NPS subscribers can self-certify their FATCA declaration online

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National Securities Depository Limited (NSDL) allows the National Pension Scheme (NPS) subscribers to update their Foreign Account Tax Compliance Act (FATCA) self-certification online. Before getting into any more detail, you need to know what FATCA is and why you must self-certify it.

What is FATCA?

India has entered into the inter-governmental agreement (IGA) with the US to implement FATCA, effective from 31 August 2015. FATCA facilitates the automatic exchange of financial information between India and the US. That is, all Indian financial institutions must provide necessary information to the tax authorities of the country. This information will then be shared with the US.

Why Self-Certify it?

Financial institutions are asked to carry out self-certification and to carry out due diligence procedure to determine the authentication of the self-certification of all individual and entity accounts on or after 1 July 2014.

What Happens if you Don’t Self-Certify?

If you have opened an NPS account, maintained by NSDL, on or after 1 July 2014, and not self-certify, it will be blocked.

How to make your NPS Account FATCA Compliant?

Step 1: Visit the NSDL website at the URL https://www.cra-nsdl.com/CRA/ and log in to your account.

Step 2: Upon clicking on ‘Check FATCA Compliance’, the login page will open as shown in the image below.

Step 3: Fill in the required details in the ‘FATCA/CRS Declaration Form’ and click ‘Submit’.

Step 4: Check the box next to ‘Declaration and Authorisation by all Customers’ and click on ‘Confirm’.

Step 5: An OTP will be sent to your registered mobile number.

Step 6: Once the OTP you have entered is verified, an acknowledgement for the completion of FATCA Self Certification will be displayed.

Can you Submit a Physical FATCA Self-Certification instead?

If your birthplace, citizenship, or residence for tax purposes is someplace outside India, you must submit a physical FATCA Self-Certification form to your nodal officer or Central Record Keeping Agency (CRA). Click here to access the physical form to be used.