Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Arbitration
 Aviation Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Miscellaneous
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscription
Subscribe now and receive free articles and updates instantly.

Name
Email




Published : March 07, 2017 | Author : semlovelysharma
Category : Tax Laws | Total Views : 693 | Unrated

  
semlovelysharma
Lovely is Tax law expert
 

NRIs, PIO and OCI to Share Tax Info Under FATCA/CRS Agreement

 

Why FATCA was rolled out?

Non-Residents of India (NRIs) in the USA are already aware of FATCA alias Foreign Account Tax Compliance Act. This law is basically constituted for exchanging the information of the non-US citizens’ assets between India and the US.

By the finance books, the income earned beyond certain caps are considered as taxable income. And there is a list of income that comes under taxability. But there are some citizens who evade taxes. Such intentions are mostly found in the emigrants who earn from the residence country as well as the country of their origin.

Let’s say, an NRI generates income from his heritage property in India. And he has another source, i.e. his job, of income in the US. Despite having inflow of income from two sources, he pays tax against the income from the job in the US. It implies that he evades tax to be paid on the income earned through property in India (which is taxable in India). To combat such kind of stealing of tax, FATCA was rolled out.

This law represents an international standard set between both countries to enhance transparency of the Internal Revenue Service (IRS). Under it, the income recipient has to provide intense detail of income earned from wherever or whatever source in any country.

What is CRS Agreement?

The emigrant tax evaders from India would have to face off jolt. Now, Common Reporting Standards (CRS) agreement is inked by India. It is an international standard that automates the sharing of emigrant’s detailed tax information by the signatory countries. Around 87 countries, including Australia, UK, Canada, Korea, and many more, are now abided by this tenet.

Resultantly, the citizens who have bank accounts in various countries would face off its affect very soon. Unlike FATCA that affects only Americans and green card holders, this standard will influence relatively large ambit that includes 87 countries.

Although India joined this league on November 2, 2016, but no information has been exchanged yet. The exchange will be initiated in September month this year (2017).

Why this agreement?

As foresaid, CRS agreement mandates exchange of tax payers’ information between the member nations. This concrete step will prove utmost helpful in tapping the non-taxpayers. Tracing such tax-evaders has been a bone of contention for many countries.

Emigrants, who undoubtedly are the major contributors in nation’s GDP (Gross Domestic Product), would be targeted primarily through it. Therefore, this kind of reporting will prove a blessing in disguise for many countries, like India.

Who would be affected by this agreement in India?

This reporting will target the people who have their bank accounts across their residence country. Therefore, non-residents (NRIs), persons of Indian origin (PIOs) and overseas citizens of India (OCIs) would be affected primarily. Such people would have their bank accounts in the native country as well as the country where they live.

Many of them have been enjoying the best NRI services from the banks in various countries. But now, this reporting would cease such practice.

Banks have initiated circulating this circular to its customers. Although the banks may not directly inform about the CRS but they would ask their identity, tax status, tax identity number, residency status and citizenship etc. A few countries, like Canada, many not require birth proof also along with other documents. This initiative will let the countries procure necessary details that are mandatory under FATCA/CRS regulation.

What kind of accounts shall be shared in reporting?

The account holders must look into the roundup of the details mentioned below. Bear in mind that each bank account holder must provide the detail individually. These points will help them to get set with the following documents:

· Name

· Address

· Birth proof (not asked by all countries)

· Tax Identification Number (TIN), if any

· Tax details of the residence country’s bank

· Account number

· How much balance is there in the accounts

· Interest/dividend/gross proceeds or any other kind of income sourced through bank

Catch on the kind of bank accounts that must be reported:

· NRE or NRO bank account

· Mutual funds

· Brokerage accounts

· Custodial accounts

· Annuity contracts

· Life insurance policies

What will be the consequences of unshared account details?

As far as the consequences are concerned, those who would not respond to share the asked information, their bank accounts shall be frozen within 15 days of the information received. Later, they might be closed if would receive no response.

The consequence may vary from country to country.




1 2 3 4 5
Rate this article!     Poor
Excellent    

Most viewed articles in Tax Laws category
Renting of Immovable Property - Service Tax
Interpretation of taxing statute as strict construction and exemption
Export of Services- An analysis

Deductions Under Section 80d & 80e Of The Income Tax Act
Assessment of Income From House Property
Carry Forward and Set off of Losses
The Bhopal Gas Tragedy: On Whether and How the Indian Companies Act, 1956 can be used to make a case for imposing social responsibility on corporations?
Regulatory Aspects of Venture Capital In India
The Double Tax Avoidance Agreement between India and Mauritius
Vodafone vs. Union of India
General Anti Avoidance Rule GAAR - An Indian and International Perspective
Leviability of Sales Tax to Actionable Claim
Silent Features of GST Bill 2016
Custom Valuation & Transfer Pricing
Anti-Dumping Regime in Indian Scenario
Most recent articles in Tax Laws category
Delegation of Taxation Power
NRIs, PIO and OCI to Share Tax Info Under FATCA/CRS Agreement
SEZ Eligibility under SEIS Scheme
Goods and Service Tax (GST) Working In India
Silent Features of GST Bill 2016
Why Tax Practitioners Bill Required For India
Non Resident Indian under Income Tax Act, 1961
Fearlessness of the Judiciary
Tax Implications on Business Reorganization Schemes
General Anti Avoidance Rule GAAR - An Indian and International Perspective
Comparables and Transfer Pricing
Interpretation of taxing statute as strict construction and exemption
Feasibility of GAAR for removing the practice of Tax Avoidance
Tax chages in Nepal by Finance Act 2067
Carry Forward and Set off of Losses
The Double Tax Avoidance Agreement between India and Mauritius

Article Comments

there are no comments...


Welcome!
Please login or register a new free account.

Random Pick
The Constitution of India begins with a Preamble. The Preamble contains the ideals, objectives and basic principles of the Constitution. The salient features of the Constitution have evolved directly and indirectly from these objectives which flow from the Preamble.

Statistics
» Total Articles
1479
» Total Authors
4390
» Total Views
18846462
» Total categories
41

Law Forum


Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers

TOP

India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3