Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

New Delhi, 19 February, 2016

Subject: Clarification for implementation of FATCA and CRS –regarding

An Inter-Governmental Agreement between India and USA was signed for implementation of Foreign Account Tax Compliance Act (FATCA). The Government of India has also joined the Multilateral Competent Authority Agreement (MCAA) for Automatic Exchange of Information as per Common Reporting Standard (CRS). To provide guidance for implementation of FATCA and CRS, A Guidance Note was released on 31st August 2015 which was subsequently updated on 31.12.2015.

Based on comments and feedback received from the financial institutions, a clarification has been iss     ued on February, 2016.The same has been placed on the Income-tax website http://www.incometaxindia.gov.in.

(Shefali Shah)

Pr. Commissioner of Income Tax

(Media and Technical Policy)

& Official Spokesperson, CBDT

FATCA and CRS guidance clarifies reporting and due diligence obligations for financial institutions, with published administrative clarifications. Implementation guidance for FATCA and CRS directs Indian financial institutions on due diligence, reporting and compliance obligations; the Government executed an IGA for FATCA and joined the MCAA for CRS, issued a consolidated Guidance Note which was updated, and published a subsequent clarification addressing stakeholder implementation queries on the tax authority website as the operative reference for reporting procedures and administrative compliance.