India numbered in FACTA list of US Treasury Department

The United States Department of Treasury (DoT) included India in its list of 34 countries with which it would share information under FATCA (foreign account tax compliance act) regulations to curb black money and tax evasion issues. This list included 16 new countries.
(UN DoT Headquarters – Washington D.C.)

• The decision is taken on the sidelines of NaMo’s agreement inked with US authorities during his recent visit to US.
• From 30^th September 2015 act became operative.

AIM
To cover automatic sharing of information on bank accounts and financial instruments like mutual funds, insurance and equities with each other.

• Indian financial institutions (FIIs) will be required to exchange tax information of up to 60 countries under International agreements on FATCA and CRS (Common Reporting System)
• Government revealed that they have got details of undisclosed foreign assets of around Rs 3,770 crore from 638 declarations. It is expecting that Government would charge up to 60% tax on these disclosed assets which come under the government’s voluntary discloser one time window.

ABOUT FACTA

• Foreign Account Tax Compliance Act (FATCA) formed in March 2010 by 111^th Us Congress.
• Its purpose is to obtain information on accounts held by its taxpayers in other countries and reporting of the foreign financial assets.
• FATCA requires foreign financial institutions (FFIs) to report to the IRS (Internal Revenue Service) about the details of US taxpayer financial accounts or by other foreign entities in which U.S. taxpayers hold a considerable ownership interest.