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”
FATCA declaration for NPS can be done Online now – Click to Read!
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.
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.
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:
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.
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.
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
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.
How to send the facts documents to nps
Post/courier anything would do
Sir, I am indian tax payer
FATCA self certification form part 4 signature is necessary or not
Not required
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
My NPS account was activated on 23-04-2014. Mujhe bhi vejna pareha kya?
Not required
Sir, I am NRI based in UAE. Do i need to fill section IV – Self Certification. I am neither a USA citizen nor born in USA, nor resident of USA.
“residence for tax purpose” would not be India for you. If you do not have PAN card equivalent of UAE you’ll need to fill Part 4.
My PRAN no.has been generated on13.06.2014 & contribution deducted from July -2014.should I submit fatca/CTS declaration ?
Yes you should
sir i have no connection with US . to part 4 bharne ka jarurat h kya? agar jarurat nahi h to koi proof bhi ni bhi dena hoga kya?
Not required
Hi Amit,
I Just want to know as I am citizen of india by birth and not having any term with US so i fall in section 1 and 3 of this form.
Now i want to know what are the documents I need to post along with form?. In email they are referring to term documentary evidence so what they are basically looking for along with form.
Another question is can we send this form by Speed Post also or by normal post only?.
Thanks In advance.
Ravi
As per instructions it does not seem they are asking for any document. But in case you wish you can send any of the listed docs in part 4. Use any mode to send its not specified by NSDL.
Thanks Amit.
One more question, if letter does not reach on time i.e. before 30 April, 2017 to NSDL is there any way we can find it out our account is blocked to cross verify the things. And will be reopen once they get the letter.
Just log in your NPS account – that may show it as blocked. I have not done so personally.
Dear Amit,
Can i send more than one Self Declaration form of me and my friends in one envelope?
Yes I do not see a issue in that
hi amit hw r u small clarification iam a state govt emloyee of telangana hyderabad shall we also submit this form more over what is documentary proof is it required what the hell all this about deadline april 30th one more thing we have to send it by speed post along with from address required or not please reply
amit pls reply
I am not sure if government employees need to have FATCA self certification (if NPS account is by your employer). Just clarify from your HR/Accounts department.
In case you need to send you can use any means registered post/speed post/couriers etc.
thank you amit
Is my doubt posted on 29 apr, still under moderation? Can I expect a response?
Sir i hv filled this form and there are alot of mistakes due to missunderstanding. Like in part 1 in place of birth i hv written the date of birth. And i hv also filled the part iv although my answres in part 1 are india… and also posted it on 29/0417…so plz i need your opinion
Please resend it
Sir. I am Indian filled part 1&3 and signed on part 4 also.may I face problem or submit new form?
No
Part 1 mai india hai part 3 mai signature hai part 4 mai signature nahi kiye koi problem to nahi hogi
If your are Indian tax payer then no problem
Sir I forgot to mention ‘self certification fatcra/cra form on envelope.
What to do?
Resend it or not
Wait for few days. In case not accepted resend it
Sir I forgot to mention. ‘ self certification fatcra/cra firm’s on envelope.
What to do
Resend it or not
If not approved in next few days send again!