How to Submit FATCA declaration for NPS to prevent it from getting Blocked?

How to submit FATCA declaration for NPS?

How to submit FATCA declaration for NPS?

Several NPS subscribers received SMS on April 27 from NSDL stating – “As a regulatory requirement, submit FATCA self-certification for your PRAN to CRA, else account will be frozen. For more details visit www.npscra.nsdl.co.in”

Later in the day subscribers also received from NPS [email protected] on their registered email with Subject: “Submission of FATCA Self-Certification Form for your PRAN under NPS”. Have reproduced the mail below.

NPS FATCA Self Declaration email

NPS FATCA Self Declaration email

New email from NSDL:

A few hours back received below mail from NSDL. The accounts would not be blocked on account of non-submission of FATCA Self-Certification. PFRDA / NPS Trust will issue revised guidelines on FATCA shortly. So NPS subscribers should wait until further instructions.

Submission of FATCA Self-Certification Form for your PRAN under NPS - Account NOT to be blocked

Submission of FATCA Self-Certification Form for your PRAN under NPS – Account NOT to be blocked

NSDL handled this entire thing in worst way possible – some heads should roll!

What is FATCA?

FATCA is Foreign Account Tax Compliance Act, a law enacted by USA in 2010. According to this law, any individual who is resident of USA (citizens or green card holders) or financially connected to the US or have any tax residency in US have to declare all their foreign income and investment details to US Tax Authorities. The law was enacted to prevent tax evasion through offshore investments by US residents.

India is signatory of the above law and hence all the financial entities like Banks, Insurance Companies, Mutual Funds, Brokerages, etc have to furnish their client information to the Indian Government, which in turn would share it with US Government. In case you have no income connection with USA, you are not impacted but still need to give the declaration.

NPS FATCA Declaration:

Unfortunately PFRDA the regulator for NPS did not bother to inform its subscribers about the FATCA requirement until the very last minute. But regulations being regulations this is what we need to do.

Only people who have opened NPS Account on or after July 1, 2014 are impacted.

But with tax incentive on NPS coming in 2014 there would lot of people who opened NPS account and would be impacted!

Also Read: Should you Invest Rs 50,000 in NPS to Save Tax u/s 80CCD (1B)?

To comply subscribers would have to submit a self-certification (i.e. FATCA/CRS Declaration) to NPS Trust.

Step 1: You can download the NPS FATCA Self Declaration Format by clicking here or from the email you received.

Step 2: Fill up the form (How to fill the form has been shown below) and send it to Central Recordkeeping Agency (CRA) for NPS at the following address:

NSDL e-Governance Infrastructure Limited,

1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,

Lower Parel, Mumbai – 400 013

Also mention Self-Certification – FATCA/CRS Declaration Form on the envelope

In case the above filled self declaration NPS FATCA form is not received before April 30, 2017 the NPS account would be blocked. The account can be activated only after subscriber submits the above form.

Also Read: 5 Steps to Transfer EPF to NPS

How to fill NPS FATCA Self Declaration Form?

The FATCA form is 3 page form divided in 4 parts.

Part I:

NPS FATCA Self Declaration Form - Part I

NPS FATCA Self Declaration Form – Part I

Part 1 asks for following information:

Name of Subscriber:

Permanent Retirement Account Number (PRAN):

Date of Birth:

1. Country of:

a) Birth

b) Citizenship

c) Residence for Tax Purposes

2. US Person (Yes / No)

In case the answer for 1 above Country of Birth, Citizenship and Residence for Tax Purposes is INDIA, you just need to move to Part 3 for signature. This hopefully would cover majority of NPS subscribers.

Also Read: NPS Tax Benefit u/s 80CCD(1), 80CCD(2) and 80CCD(1B)

Part 2:

In case the answer for any of the above is not India or US Person status is YES, you need to provide Tax Payer Identification Number (TIN) or functional equivalent as issued in the specific country in the table.

NPS FATCA Self Declaration Form - Part II

NPS FATCA Self Declaration Form – Part II

Also Read: 6 Changes in NPS Rules in 2016 & How it Impacts You?

Part III:

Part III just requires your name, signature and date and is to be filled by everyone.

NPS FATCA Self Declaration Form - Part III

NPS FATCA Self Declaration Form – Part III

Also Read: NPS – Maturity, Partial Withdrawal & Early Exit Rules

Part IV:

Fill this part only if you satisfy conditions below:

Name of the country in Part I is other than India and TIN or functional equivalent is not available, or

US person is mentioned as Yes in Part I, and TIN is not available

NPS FATCA Self Declaration Form - Part IV

NPS FATCA Self Declaration Form – Part IV

Download: Ultimate Tax Saving ebook with tax calculator FY 2017-18

The subscribers would in this case have to provide any of the below mentioned as proof of citizenship and residency in India.

  • Passport
  • Election ID card
  • PAN Card
  • Driving License
  • UIDAI Letter
  • NREGA Job Card
  • Govt. Issued ID card

In case you require any clarification or assistance with respect to the above, please contact Ms. Ranjana Chavan / Ms. Mamta Jadhav at 022-40904242.

The Problems:

The entire approach by NPS/NSDL to obtain FATCA declaration is going to create lot of issues for subscribers. I do not understand why this could not be done online as was done by Mutual Funds earlier. Also there is NO way subscribers would be able to send the FATCA self declaration forms on time. Even in case they do NPS CRA would not have the ability to process the deluge of forms! Anyway as subscriber send this FATCA Self declaration as soon as possible to prevent any problem in future. 

281 thoughts on “How to Submit FATCA declaration for NPS to prevent it from getting Blocked?

  1. Why NSDL is not providing online option to submit FATCA declaration online? It is illogical that we can open NPS account through online but not able to submit these declarations in online mode!! Agencies like CAMS are providing online facility.

  2. @Amit do we need to submit document proof even if we don’t fill section IV

  3. Hi Amit ,
    I living/ work in France last 3 year with Indian citizenship status. as I understood residence for tax purpose I have to put France. also mention TIN number. I have an Atal Pension Yojana (APY) scheme which is activated last 1 year with my Indian saving bank account. I have pran number from APY. I would like to know from you that as a NRI is there any problem will create to my APY account ? Thank you

    • You might have opened APY as resident Indian. In my opinion you can continue the same as NRI. NRIs are eligible to invest in NPS but I am not sure about APY.

  4. Gopal kumar says:

    Sir i have nps account

  5. sir i want to know if i have to put my signature in part 4

  6. Gopal kumar says:

    Sir i want to know if i do not submit myfatca form at time my which Account will be close. Bank account or nps account.

  7. Abhishek Sharma says:

    Thanks Amit for this valuable information. It was simple and to the point. Sending my FACTA Form right away. I guess I am not too late.

  8. rajendra prasad says:

    Sir meri joining date jan 2013 ki h. Probation period Jan 2015 me complete hua h , to kya mujhe bhi ye form bhar kar bhejna padega kya sir plz tell me.or agar bhejna h to kab take bhej sakte h

  9. For which financial year does this form pertain to? I am a H1B visa holder and have moved back to India in Dec 2016. Do I need to fill US person as yes or no?

  10. pardeep singh says:

    sir mara pran no 2013 mein genrate hua tha mere ko msg bhi nhi aya maine form bharna hai ja nhi plz reply

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