TaxTMI 
TaxTMI 
Income–tax (11th Amendment) Rules, 2015
X X X X Extracts X X X X
X X X X Extracts X X X X
....finitions.- For the purpose of this rule and rules 114G and 114H,- (1) "financial account" means an account (other than an excluded account) maintained by a financial institution, and includes- (i) a depository account; (ii) a custodial account; (iii) in the case of an investment entity, any equity or debt interest in the financial institution. Explanation.- For the purposes of this sub-clause "financial account" shall not include any equity interest or debt interest in an entity that is an investment entity solely because it,- (a) renders investment advice to, and acts on behalf of; or (b) manages portfolios for, and acts on behalf of, a customer for the purpose of investing, managing, or administering financial assets deposited in the name of the c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; Explanation.- A person will be treated as a beneficiary of a trust if he has the right to receive directly or indirectly a mandatory distribution or may receive, directly or indirectly, a discretionary distribution from the trust. (d) "insurance contract" means a contract (other than an annuity contract) under which the issuer agrees to pay an amount upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk; (e) "annuity contract" means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals; (f) "cash value insurance contract" means an insurance contract (other than an indemnity reinsurance contract between two insurance companies) that has a cash value and in case of a U.S. reportable account such value is greater than an amount equivalent to fifty thousand U.S. dollars. Explanation.- For the purposes of this clause, a singl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... deposit for an insurance contract for which the premium is payable at least annually if the amount of the advance premium or premium deposit does not exceed the next annual premium which will be payable under the contract: Provided that the provisions contained in sub-clause (A) and sub-clause (E) shall not apply in case of a U.S. reportable account; (h) "excluded account" means,- (i) a retirement account or pension account that satisfies the following requirements, namely:- (A) the account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits (including disability or death benefits); (B) the account is tax-favoured where contributions to the account that would otherwise be subject to tax are ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tal income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate; (C) withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account (for example, the provision of educational or medical benefits), or penalties apply to withdrawals made before such criteria are met; and (D) annual contributions are limited to an amount equivalent to fifty thousand U.S. dollars or less, applying the rules specified in clause (c) of sub-rule (7) of rule 114H for account aggregation and currency translation. Explanation.- A financial account that otherwise satisfies the requirements of item (D) will not fail to satisfy such requirements solely because such financial account may receive assets or funds transferred from one or more financial accounts that meet the requirements of item (A) o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ange, or lease of real or personal property, provided that the account satisfies the following requirements, namely:- (a) the account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a financial asset that is deposited in the account in connection with the sale, exchange, or lease of the property; (b) the account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease; (c) the assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee (including to satisfy such perso....
X X X X Extracts X X X X
X X X X Extracts X X X X
....includes a security (for example, a share of stock in a corporation; partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust; note, bond, debenture, or other evidence of indebtedness), partnership interest, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps, interest rate floors, commodity swaps, equity swaps, equity index swaps, and similar agreements), insurance contract or annuity contract, or any interest (including a futures or forward contract or option) in a security, partnership interest, commodity, swap, insurance contract, or annuity contract: Provided that "financial asset" shall not include a non-debt and direct interest in an immovable property; (3) "financial institution" means a custodial institution, a depository institution, an investment entity, or a specified insurance company. Explanation.- For the purposes of this clause,- (a) "custodial institution" means any entity that holds, as a substantial portion of its business, financial assets for the account of oth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ree-year period ending on 31st March of the year preceding the year in which the determination is made or the period during which the entity has been in existence. Explanation 2.- The term "investment entity" shall not include an entity that is an active non-financial entity merely because it meets any of the criteria provided in sub-clauses (iv), (v), (vi) or (vii) of clause (A) of Explanation to clause (6) of this rule; (d) "specified insurance company" means any entity that is an insurance company (or the holding company of an insurance company) that issues, or is obligated to make payments with respect to, a Cash Value Insurance Contract or an Annuity Contract; (4) "non-participating financial institution" means a financial institution defined in clause (r) of Article 1 of the agreement between the Government of the Republic of India and the Government of the United States of America to improve international tax compliance and to implement Foreign Account Tax Compliance Act of the United States of America (herein after referred to as the FATC....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd acts on behalf of; or (II) manages portfolios for, and acts on behalf of; or (III) executes trades on behalf of, a customer for the purposes of investing, managing, or administering funds or securities deposited in the name of the customer with a financial institution other than a non-participating financial institution; (g) an exempt collective investment vehicle; (h) a trust established under any law for the time being in force to the extent that the trustee of the trust is a reporting financial institution and reports all information required to be reported under rule 114G with respect to all reportable accounts of the trust; (i) a financial institution with a local client base; (j) a local bank; (k) a financial institution with only low-value ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... financial services to private persons; (ii) a controlled entity means an entity that is separate in form from the country or territory or that otherwise constitutes a separate juridical entity: Provided that- (a) the entity is wholly owned and controlled by one or more Governmental entities directly or through one or more controlled entities; (b) the entity's net earnings are credited to its own account or to the accounts of one or more Governmental entities, with no portion of its income inuring to the benefit of any private person; and (c) the entity's assets vest in one or more Governmental entities upon dissolution: Provided further that the income does not inure to the benefit of priva....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vices rendered: Provided that the fund,- (i) does not have any beneficiary with a right to more than five per cent. of the fund's assets; (ii) is subject to Government regulation and provides information reporting to the income-tax authorities; and (iii) satisfies at least one of the following requirements, namely:- (a) the fund is generally exempt from tax on investment income, or taxation of such income is deferred or taxed at a reduced rate, due to its status as a retirement or pension plan; (b) the fund receives at least fifty per cent of its total contributions [other than transfer of assets from other plans referred to in clauses (D) to (G) or from retirement and pension accounts referred to in sub-clause (i) of clause (h) of Explanation to clause (1)] from the sponsoring employers; (c) distributions or withd....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... employees (or persons nominated by such employees), or who are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services rendered to the Governmental entity, International Organisation or Central Bank; (H) "non-public fund of the armed forces" means a fund established in India as a regimental fund or non-public fund by the armed forces of the Union of India for the welfare of the current and former members of the armed forces and whose income is exempt from tax under clause (23AA) of section 10 of the Act; (I) "Employees' State Insurance Fund" means the fund established as Employees' State Insurance Fund under the provisions of the Employees' State Insurance Act, 1948 (34 of 1948), to provide medical expenses of low-income factory workers in India; (J) "gratuity fund" means a fund established under the Payment of Gratuity Act, 1972 (39 of 1972), to provide for the payment of a gratuity to certain types of employees of an Indian employer specified in the Payment of Gratuity Act, 1972; (K) "provident....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xtent of disputed charges but includes credit balances resulting from merchandise returns; (M) "exempt collective investment vehicle" means an investment entity that is regulated as a collective investment vehicle, provided that all of the interests in the collective investment vehicle are held by or through persons other than,- (i) those referred to in sub-clauses (a) to (c) of clause (6); and (ii) a non-participating financial institution. Explanation.- An investment entity which is regulated as a collective investment vehicle does not fail to qualify under this clause as an exempt collective investment vehicle, only because it has issued physical shares in bearer form: Provided that- (i) the collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after the 31st December, 2012; (ii) the collective investment vehicle retires all such shares upo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... services to non-residents, and does not otherwise target or solicit customers or account holders who are resident of any country or territory outside India for tax purposes; (iv) the financial institution is required under any law for the time being in force to identify resident account holders for purposes of either information reporting or withholding of tax with respect to financial accounts held by residents or for purposes of satisfying the due diligence requirements under the Prevention of Money-laundering Act, 2002 (15 of 2003); (v) at least ninety eight per cent. of the financial accounts by value maintained by the financial institution are held by residents; (vi) beginning on or before the 30th June, 2014, the policies and procedures of the financial institution are consistent with those set forth in rule 114H, to prevent the financial institution from providing a financial account to any non-participating financial institution and to monitor whether the financial institution opens or maintains a financial account for any reportable per....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; (ii) the business of the financial institution consists primarily of receiving deposits from and making loans to, with respect to a bank, unrelated retail customers and, with respect to a credit union or similar cooperative credit organisation, members, provided that no member has a greater than five per cent. interest in such credit union or cooperative credit organisation; (iii) the financial institution satisfies the requirements set forth in sub-clauses (ii) and (iii) of clause (N), provided that, in addition to the limitations on the website referred to in sub-clause (iii) of clause (N), the website does not permit the opening of a financial account; (iv) the financial institution does not have more than an amount equivalent to one hundred seventy-five million U.S. dollars in assets on its balance sheet, and the financial institution and any related entity, taken together, does not have more than an amount equivalent to five hundred million U.S. dollars in total assets on its consolidated or combined balance sheets; and (v) any relat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it is an investment entity established in India that is not a qualified intermediary (being an intermediary that is a party to a withholding agreement with the United States of America), withholding foreign partnership, or withholding foreign trust; and (b) an entity has agreed with the financial institution to act as a sponsoring entity for the financial institution; (ii) a financial institution is a sponsored controlled foreign corporation if- (a) the financial institution is a controlled foreign corporation established under any law for the time being in force in India that is not a qualified intermediary (being an intermediary which is a party to a withholding agreement with the United States of America), withholding foreign partnership, or withholding foreign trust; (b) the financial institution is wholly owned, directly or indirectly, by a reporting U.S. financial institution referred to in Article 1 of the FATCA agreement t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed States of America) in all its reporting completed on the financial institution's behalf; and (VI) the sponsoring entity has not had its status as a sponsor revoked; (R) "sponsored, closely held investment vehicle" means a financial institution satisfying the following requirements, namely:- (i) it is a financial institution only because it is an investment entity and is not a qualified intermediary (being an intermediary that is a party to a withholding agreement with the United States of America), withholding foreign partnership, or withholding foreign trust; (ii) the sponsoring entity is a reporting U.S. financial institution referred to in Article 1 of the FATCA agreement, reporting financial institution, or participating foreign financial institution defined in Annex II of the FATCA agreement, is authorised to act on behalf of the financial institution (such as a professional manager, trustee, or managing partner), and agrees to perform, on behalf of the financial in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... one or more controlling persons that is a person described in sub clause (b) of clause (8) of this rule. Explanation.- For the purpose of this clause,- (A) "active non-financial entity" means any non-financial entity which fulfils any of the following criteria, namely:- (i) less than fifty per cent of the entity's gross income for the preceding financial year is passive income and less than fifty per cent of the assets held by the entity during the preceding financial year are assets that produce or are held for the production of passive income; or (ii) the stock of the entity is regularly traded on an established securities market or the non-financial entity is a related entity of an entity, the stock of which is regularly traded on an established securities market. Explanation.- For the purpose of this sub-clause, an established securities market means an exchange that is recognised and supervised by a Governmental authority in which the securities market is located and th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tic, or educational purposes; or it is established and operated in India and it is a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare; (b) it is exempt from income-tax in India; (c) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets; (d) the applicable laws of the entity's country or territory of residence or the entity's formation documents do not permit any income or assets of the entity to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the entity's charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the entity has purchased; and  ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (C) "non-financial entity" means any entity that is not a financial institution; (D) "passive non-financial entity" means,- (i) any non-financial entity which is not an active non-financial entity; or (ii) an investment entity described in sub-clause (B) of clause (c) of the Explanation to clause (3); or (iii) a withholding foreign partnership or withholding foreign trust; (E) an entity is a "related entity" of another entity if either entity controls the other entity, or the two entities are under common control. Explanation.- For the purpose of this clause control includes direct or indirect ownership of more than fifty per cent. of the votes and value in an entity; (F) "passive income" includes income by way of,- (i) dividends; (ii) interest; (iii) income equivalent to interest; &nb....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; (iv) an International organisation; (v) a Central bank; or (vi) a financial institution, that is a resident of any country or territory outside India (except the United States of America) under the tax laws of such country or territory or an estate of a decedent who was a resident of any country or territory outside India (except the United States of America) under the tax laws of such country or territory; (9) "specified U.S. person" means a U.S. Person, other than the persons referred to in sub-clauses (i) to (xiii) of clause (ff) of Article 1 of the FATCA agreement; (10) "U.S. person" means,- (a) an individual, being a citizen or resident of the United States of America ; (b) a partnership or corporation organized in the United States of America or under the laws of the United States of America or any State thereof; &nb....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f each reportable account, namely:- (a) the name, address, taxpayer identification number (assigned to the account holder by the country or territory of his residence for tax purposes) and date and place of birth (in the case of an individual) of each reportable person, that is an account holder of the account; (b) in the case of any entity which is an account holder and which, after application of due diligence procedures prescribed in rule 114H, is identified as having one or more controlling persons that is a reportable person,- (i) the name and address of the entity, taxpayer identification number assigned to the entity by the country or territory of its residence; and (ii) the name, address, date and place of birth of each such controlling person and taxpayer identification number assigned to such controlling person by the country or territory of his residence; (c) the account number (or functional equiv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sp; (ii) with respect to calendar year 2015, is the information referred to in clauses (a), (b), (c), (d), (f), (g), (h) and sub-clause (i) of clause (e), with regard to U.S. reportable accounts; (iii) with respect to calendar year 2016, is the information referred to in clauses (a) to (h), with regard to all reportable accounts; (iv) with respect to calendar year 2017 and subsequent years, is the information referred to in clauses (a) to (g), with regard to all reportable accounts: Provided further that with respect to each U.S. reportable account which is maintained by a reporting financial institution as on the 30th June, 2014, the taxpayer identification number of any relevant person is not required to be reported if such taxpayer identification number is not in the records of the reporting financial institution. (2) For the purpose of sub-rule (1),- (a) "account holder....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is not required to be reported if,- (i) a taxpayer identification number (including its functional equivalent) is not issued by the relevant country or territory outside India in which the person is resident for tax purposes or; (ii) the domestic law of the relevant country or territory outside India does not require the collection of the taxpayer identification number issued by such country or territory. (6) Notwithstanding anything contained in sub-rule (1), the place of birth is not required to be reported unless it is available in the electronically searchable data maintained by the reporting financial institution. (7) The statement of reportable account required to be furnished under clause (k) of sub-section (1) of section 285BA shall be furnished by a reporting financial institution in respect of each account which has been identified, pursuant to due diligence procedure specified in rule 114H, as a reportable account: Provided that where pursuant to such due diligence procedures no account is identified as a reportable....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the purposes of this sub-rule,- (a) "Designated Director" means a person designated by the reporting financial institution to ensure overall compliance with the obligations imposed under section 285BA and the rules made thereunder and includes- (i) the Managing Director or a whole-time Director, as defined in the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors if the reporting financial institution is a company; (ii) the managing partner if the reporting financial institution is a partnership firm; (iii) the proprietor if the reporting financial institution is a proprietorship concern; (iv) the managing trustee if the reporting financial institution is a trust; (v) a person or individual, as the case may be, who controls and manages the affairs of the reporting financial institution if the reporting financial institution is an association of persons or a body of individuals, or any other person; &....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al, any valid identification issued by an authorized Government body, including a Government agency or a municipality, that includes the individual's name and is particularly used for identification purposes; (iii) with respect to an entity, any official documentation issued by an authorized Government body, including a Government agency or a municipality, which includes the name of the entity and either the address of its principal office in the country or territory in which it claims to be a resident or the country or territory in which the entity was incorporated or organized; (iv) any financial statement, third-party credit report, bankruptcy filing, or a report of the Government agency regulating the securities market; (b) "high value account" means a pre-existing individual account with a balance or value that,- (i) in case of a U.S. reportable account, exceeds an amount equivalent to one million U.S. dollars as on the 3....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a pre-existing account held by one or more individuals; (k) where a balance or value threshold is to be determined at the end of a calendar year, the relevant balance or value shall be determined as on the last day of the reporting period which ends with or within that calendar year. (3) The due diligence procedure for the purposes of identifying reportable accounts among pre-existing individual accounts shall be the following, namely:- (a) a pre-existing individual account is not required to be reviewed, identified or reported, if,- (i) in case of a U.S. reportable account,- (A) the balance or value as on the 30th June, 2014, does not exceed an amount equivalent to fifty thousand U.S. dollars, subject to sub-clause (vi) of clause (c) of this sub-rule; or (B) which is a cash value insurance contract or an annuity c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....de India; or (E) currently effective power of attorney or signatory authority granted to a person with an address in a country or territory outside India; or (F) a "hold mail" instruction or "in-care-of" address in a country or territory outside India if the reporting financial institution does not have any other address on file for the account holder; (ii) if none of the indicia listed in sub-clause (i) are discovered in the electronic search, then no further action is required until there is a change in circumstances which results in one or more indicia being associated with the account, or the account becomes a high value account; (iii) if any of the indicia listed in items (A) to (E) of sub-clause (i) are discovered in the electronic search, or if there is a change in circumstances which results in one or more indicia being associated with the account, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsp; (III) a copy of the account holder's certificate of loss of nationality of the United States of America or a reasonable explanation of- (1) the reason, the account holder does not have such a certificate despite relinquishing citizenship of the United States of America; or (2) the reason, the account holder did not obtain citizenship of the United States of America at birth; (B) of any country or territory outside India if, the account holder's information contains a current mailing or residence address in any country or territory outside India, one or more telephone numbers in any country or territory outside India (and no telephone number in India) or standing instructions (with respect to financial accounts other than depository accounts) to transfer funds to an account maintained in any c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is clause, then the reporting financial institution shall also review the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with the account and obtained by the reporting financial institution during the last five years for any of the indicia provided in sub-clause (i) of clause (b),- (A) the most recent documentary evidence collected with respect to the account; (B) the most recent account opening contract or documentation; (C) the most recent documentation obtained by the reporting financial institution pursuant to rules framed under the Prevention of Money-laundering Act, 2002 (15 of 2003) or any other law for the time being in force; (D) any power of attorney or signature authority forms currently in effect; and (E) any standing instructions (other tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) after application of review procedures specified in sub-clauses (i) to (iv) if,- (A) none of the indicia referred to in sub-clause (i) of clause (b) are discovered, and the account is not identified as held by a reportable person as per sub-clause (iv), then further action is not required until there is a change in circumstances which results in one or more indicia being associated with the account; (B) any of the indicia referred to in items (A) to (E) of sub-clause (i) of clause (b) are discovered, or if there is a subsequent change in circumstances which results in one or more indicia being associated with the account, then the reporting financial institution shall treat the account as a reportable account with respect to each country or territory outside India for which an indicium is identified unless it elects to apply sub-clause (v) of clause (b) and one of the exceptions in the said sub-clause applies with respect to that account; (C) a "hold mail" instruction or "i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th the account, then the reporting financial institution must treat the account as a reportable account with respect to each such country or territory outside India for which an indicium is identified unless it elects to apply sub-clause (v) of clause (b) and one of the exceptions in the said sub-clause applies with respect to that account; (ix) a reporting financial institution shall implement procedures to ensure that a relationship manager identifies any change in circumstances of an account and where the relationship manager is informed that the account holder has a new mailing address in any country or territory outside India, the reporting financial institution is required to treat the new address as a change in circumstances and, if it elects to apply sub-clause (v) of clause (b), then it is required to obtain the appropriate documentation from the account holder; (d) review of pre-existing individual account,- (i) in case of a U.S. reportable account which is high value account as on the 30th June, 2014, shall be completed by the 31st December, 2015 and if based....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(a)); and (ii) in respect of other reportable account, upon account opening, the reporting financial institution shall obtain a self-certification, which may be part of the account opening documentation, that allows the reporting financial institution to determine the account holder's residence or residences for tax purposes and confirms the reasonableness of such self-certification based on the information obtained by the reporting financial institution in connection with the opening of the account, including any documentation collected in accordance with Prevention of Money-laundering (Maintenance of Records) Rules, 2005; (c) where the self-certification obtained under clause (b) of this sub-rule establishes that the account holder is resident for tax purposes in a country or territory outside India, the reporting financial institution shall treat the account as a reportable account and the self-certification shall also include the account holder's taxpayer identification number with respect to such country or territory outside India, subject to sub-rule (5)....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 30th June, 2014 (in case of a U.S. reportable account), or as the case may be, 31st December, 2015 (in case of other reportable account) but the aggregate account balance or value exceeds an amount equivalent to two hundred and fifty thousand U.S. dollars as of the last day of any subsequent calendar year, shall be reviewed in accordance with the procedure provided in clause (d) of this sub-rule; (c) with respect to pre-existing entity accounts referred to in clause (b), only accounts which are held by,- (i) one or more entities which are reportable persons; or (ii) passive non-financial entity with one or more controlling persons who are reportable persons, shall be treated as reportable accounts: Provided that the accounts held by non-participating financial institutions for which aggregate payments as provided in clause (h) of sub-rule (1) of rule 114G are r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ution and treated by the United States of America as a non-participating financial institution; (B) the account holder, being a financial institution, is not an Indian financial institution or other partner jurisdiction financial institution, unless the reporting financial institution,- (I) obtains a self-certification from the account holder that it is a financial institution referred to in sub-clauses (a) to (m) of clause (5) of rule 114F; or (II) in the case of participating foreign financial institution defined in Annex II of the FATCA agreement or a financial institution referred to in sub-clauses (e) to (m) of clause (5) of rule 114F, verifies the account holder's Global Intermediary Identification Number; (iii) the reporting financial institution shall determine whether the account holder is a passive non-financial entity with one or more controlling persons who are resident of any country or territory outside India as per tax laws of such country or territory and in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e or value that exceeds an amount equivalent to two hundred and fifty thousand U.S. dollars as on the 30th June, 2014 (in case of a U.S. reportable account), or as the case may be, 31st December, 2015 (in case of other reportable account) shall be completed by the 30th June, 2016; (ii) review of pre-existing entity accounts with an aggregate account balance or value which does not exceed an amount equivalent to two hundred and fifty thousand U.S. dollars as on the 30th June, 2014 (in case of a U.S. reportable account), or as the case may be, 31st December, 2015 (in case of other reportable account), but exceeds an amount equivalent to two hundred and fifty thousand U.S. dollars as on the 31st December of a subsequent year, shall be completed within the calendar year following the year in which the aggregate account balance or value exceeds an amount equivalent to two hundred and fifty thousand U.S. dollars; (iii) if there is a change of circumstances with respect to a pre-existing entity account that causes the reporting financial institution to know, or have reason to know, that the self-ce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....partner jurisdiction financial institution, which is not a non-participating financial institution or a participating foreign financial institution or a non-reporting financial institution then the account shall not be treated as a U.S. reportable account; (ii) determine whether the account holder is a passive non-financial entity with one or more controlling persons who are reportable persons and in making these determinations the reporting financial institution shall follow the following procedures, namely:- (A) for purposes of determining whether the account holder is a passive non-financial entity, the reporting financial institution shall rely on a self-certification from the account holder to establish its status, unless it has information in its possession or that is publicly available, based on which it can reasonably determine that the account holder is not a passive non-financial entity; (B) for purposes of determining....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tution and associated with the beneficiary contains indicia specified in clause (b) of sub-rule (3). (c) the following procedures relating to aggregation of account balance and currency shall apply, namely:- (i) for purposes of determining the aggregate balance or value of financial accounts held by an individual, a reporting financial institution shall be required to aggregate all financial accounts maintained by it, or by a related entity, but only to the extent that the computerised systems of that reporting financial institution links the financial accounts by reference to a data element such as client number or taxpayer identification number, and allows account balances or values to be aggregated; (ii) for purposes of determining the aggregate balance or value of financial accounts held by an entity, a reporting financial institution shall be required to take into account all financial accounts which are maintained by it, or by a related entity, but only to the extent that the computerised syst....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entry into force of FATCA agreement, request the self-certification specified in sub-rule (4) and confirm the reasonableness of such self-certification consistent with the procedures specified in sub-rule (4); and (ii) with respect to a new entity account opened on or after the 1st July, 2014 but before the date of entry into force of FATCA agreement, perform the due diligence procedures specified in sub-rule (6) and request for information as necessary to document the account, including any self-certification, required under sub-rule (6); (b) the reporting financial institution shall report on any new account which is identified pursuant to clause (a) of this sub-rule as a U.S. reportable account or as an account held by a non-participating financial institution, as applicable, by the date which is the later of,- (i) the 31st of May next following the date on which the account is identified as a U.S. reportable account or as an account held by a non-participating financial institution, as applicabl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....p; (ii) forty-five days after the account is identified as a U.S. reportable account or as an account held by a non-participating financial institution, as applicable: Provided that in respect of all new entity accounts or a clearly identified group of such accounts which are U.S. reportable accounts opened on or after the 1st July, 2014, and before the 1st January, 2015 the reporting financial institution may, in lieu of the procedure specified in clauses (a) to (d), treat such accounts as pre-existing entity accounts and apply the due diligence procedure related to pre-existing entity accounts specified in sub-rule (5) without regard to the account balance or value threshold specified in clause (a) of sub-rule (5).' 3. In the said rules, in Appendix-II, after Form 61A the following form shall be inserted, namely:- [F. No. 142/21/2015 TPL] (Gaurav Kanaujia) Director to Government of India Note:- The principal rules were published vide notification S.O. number 969 (E), dated 26th March, 1962 and last amended by Income-tax (10th Amendment) Rules, 2014 vide notification S.O. number 2070(E), dated the 29th July, 2015. =======....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Email B.3 B.3.1 B.3.2 B.3.3 B.3.4 B.3.5 ACCOUNT SUMMARY Account balance or value at the end of reporting period Aggregate gross interest paid or credited Aggregate gross dividend paid or credited Gross proceeds from sale of property Aggregate gross amount of all other income paid or credited 43 B.3.6 Aggregate gross amount credited B.3.7 B.4 B.4.1 B.4.2 Aggregate gross amount debited INDIVIDUAL DETAILS (To be provided for individual account holder ) Name Customer ID B.4.3 Father's Name B.4.4 Spouse's Name B.4.5 Gender Insert 1 character code (Refer Instructions) B.4.6 PAN B.4.7 Aadhaar Number B.4.8 Identification Type Insert character code B.4.9 Identification Number B.4.10 Occupation Type Insert 1 character code B.4.11 Occupation B.4.12 Birth Date B.4.13 Nationality Insert 2 character code B.4.14 Country of Residence as per tax laws Insert 2 character code B.4.15 Place of Birth B.4.16 Country of Birth Insert 2 character code Tax Identification Number (TIN) allotted B.4.17 by tax resident country ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entification Number (TIN) B.6.18 allotted by tax resident country B.6.19 TIN Issuing Country Insert 2 character code B.6.20 Address Type Insert 2 character code B.6.21 Address B.6.22 City/Town B.6.23 Postal Code B.6.24 State Code B.6.25 Country Code B.6.26 Mobile/Telephone Number Insert 2 character code Insert 2 character code B.6.27 Other Contact Number B.6.28 Remarks". 46 46 Instructions to Form 61B General Instructions The requirement field for each data element indicates whether the element is validation or optional in the schema. Validation (Optional) Mandatory Optional Optional* Specific Instructions "Validation" elements MUST be present for ALL data records in a file and an automated validation check will be undertaken. The Sender should do a technical check of the data file content using XML tools to make sure all "Validation" elements are present and if they are not, the sender should correct the file. The Income-tax Department will also do so and if incorrect, will reject the file. An optional element that is required for reporting depending on ava....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itted information TD-Test Data ND No Data to report - One Statement can contain only one type of Statement. Even if missing information has to be supplied, the complete report has to be submitted instead of an incremental report. Statement Number is a free text field capturing the sender's unique identifying number (created by the sender) that identifies the particular Statement being sent. The identifier allows both the sender and receiver to identify the specific Statement later if questions or corrections arise. After successful submission of the Statement to ITD, a new unique Statement ID will be allotted for future reference. The reporting entities should maintain the linkage between the Statement Number and Statement ID. Example of the statement number is 2015/01. In case if the original statement is being replaced by this statement, statement ID of the original Statement which is being replaced deleted or referred by reports in the current Statement. In case the Statement is new and unrelated to any previous Statement, mention '0' here. Requirement Validation Validation Validation A.2.4 Reason of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....166 has to be mentioned. Use IN for India. If Country Code is not available, use XX Validation A.3.8 Telephone Telephone number in format STD Code-Telephone number. (Example 0120-2894016) Validation A.3.9 Mobile A.3.10 Fax Contact Mobile number. Please do not add "0" before the number Validation Fax number in format STD Code-Telephone number. (Example 0120- 2894016) Validation E-mail of the Principal Officer Validation A.3.11 Email B.1.1 Report Serial Number B.1.2 Original Report Serial Number B.1.3 Account Type The number uniquely represents a report within a Statement. The Report Serial Number should be unique within the Statement. This number along with Statement ID will uniquely identify any report received by ITD. Validation The Report Serial Number of the original report that has to be replaced Validation or deleted. This number along with Original Statement ID will uniquely identify the report which is being corrected. In case there is no correction of any report, mention '0' here. Type of account. Permissible values are: Validation • BS Savings Account ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re: • N: New account as per Rule 114H B.1.9 B.1.10 • P: Pre-existing as per Rule 114H • X: Not applicable Self- certification Permissible values are: Y: Yes • N: No • X: Not applicable Documentatio n Status Undocumented as per Rule 114H(3) for pre-existing individual account. If the due diligence fails to establish an indicium and the attempt to obtain the self-certification or documentary evidence is not successful, the reporting financial institution must report the account as an undocumented account. Permissible values are: • D - Documented Validation Validation Mandatory Mandatory Validation • U- Undocumented B.1.11 Date of closure of Date of closure of account. This information is mandatory if the account was closed during the reporting period (Optional) Mandatory account, if closed during the reporting period 4 S. No. Element B.2.1 Branch Number Type Description The type of branch reference number used. Entities with no Branch reference number can use self-generated numbers to uniquely i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... interest paid or credited Aggregate paid or The aggregate gross amount of interest paid or credited to the account (Optional) during the period. Mandatory This information is mandatory for depository account and custodial account. gross dividend The aggregate gross amount of dividend paid or credited to the account during the period. This information can be collected from other regulated entity. (Optional) Mandatory credited This information is mandatory for custodial account. 5 S. No. Element B.3.4 Gross B.3.5 proceeds from sale of property Aggregate gross amount of all other income paid or Description The gross proceeds from sale or redemption of property paid or credited to the account during the period with respect to which the reporting entity acted as a custodian, broker, nominee, or otherwise as an agent for the account holder. This information is mandatory for custodial account. The aggregate gross amount of all other income paid or credited to the account during the period. This information is mandatory for custodial account. Requirement (Optional) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....otted. Requirement (Optional) Mandatory B.4.3 Father's Name Name of the father. This information is mandatory if valid PAN is not reported. Optional B.4.4 Spouse's Name B.4.5 Gender Name of the spouse, if available Optional Permissible values are: Validation M - Male • F - Female • O - Others B.4.6 PAN Permanent Account Number issued by Income-tax Department. This information is mandatory if PAN is required to be collected as per regulatory guidelines. (Optional) Mandatory B.4.7 Aadhaar Aadhar number issued by UIDAI Optional Number B.4.8 Identification Type Document submitted as proof of identity of the individual. Permissible values are: Validation • A - Passport • B Election Id Card ◠C PAN Card • D - ID Card • • E-Driving License GUIDAI Letter • H - NREGA job card • Z - Others • X - Not Categorised B.4.9 Identification Number Number mentioned in the identification document. This information is mandatory if PAN or Aadhar number is not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation • 1- Residential Or Business • - 2 Residential • 3 - Business - • 4 – Registered Office • 5- Unspecified B.4.20 Address Complete address consisting of house number, building name, street, locality, city, state etc. Validation Street Optional* Building Optional* Identifier Suite Identifier Floor Identifier District Name POB City/Town Optional* Optional* Optional* Optional* B.4.21 B.4.22 Postal Code Name of City, Town or Village In case of India, the 6 digit Pin code as per India Posts has to be mentioned. In case of countries outside India, respective code may be used. If Pin code is not available, use XXXXXX. Validation Validation B.4.23 State Code The two digit state code has to be mentioned as per Indian Motor Vehicle Act 1988. In case of countries outside India, or if state code is not available, use XX. Validation B.4.24 Country Code The Country Code as per ISO 3166 has to be mentioned. Use IN for India. If Country Code is not available, use XX Validation B.4.25 Mobile/Teleph one Number P....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al* Code B.5.8 PAN Permanent Account Number issued by Income-tax Department. This information is mandatory if PAN is required to be collected as per regulatory guidelines. (Optional) Mandatory B.5.9 Identification Type This Attribute defines the type of identification number being sent Validation • T-TIN • C- Company Identification Number G- US GIIN • E- Global Entity Identification Number (EIN) • O - Other This data element can be repeated if a second Identification is present B.5.10 Identification This data element provides the identification number used. No. 9 (Optional) Mandatory S. No. Element Description Requirement B.5.11 Identification issuing Country 2 character Country Code (ISO 3166). B.5.12 B.5.13 Place of Incorporation Country of Incorporation B.5.14 Country of Residence as per tax laws Identification B.5.15 Tax Number (TIN) allotted by tax Place of Incorporation. (Optional) Mandatory (Optional) Mandatory This data element describes the Country of Incorporation for the entit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mber) or mobile number (Please do not add "0" before the number) Optional Any additional information related to Entity. Optional 10 S. No. Element B.6.1 Controlling Person Type Description Type of the controlling person: Permissible values are: C01-CP of legal person-ownership • C02-CP of legal person-other means • C03-CP of legal person-senior managing official . C04-CP of legal arrangement-trust-settlor • C05-CP of legal arrangement--trust-trustee • C06-CP of legal arrangement--trust-protector C07-CP of legal arrangement--trust-beneficiary • C08-CP of legal arrangement--trust-other • C09--CP of legal arrangement-Other-settlor equivalent · C10--CP of legal arrangement-Other-trustee equivalent • C11--CP of legal arrangement-Other-protector equivalent • • • C12--CP of legal arrangement—Other-beneficiary equivalent C13--CP of legal arrangement-Other-other equivalent C14--Unknown Requirement Mandatory B.6.2 Name Name of the Controlling Person i.e. natural persons who exercise control over an entity and i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me B.6.6 Gender Permissible values are: Validation • M - Male • F - Female • O - Others B.6.7 PAN Permanent Account Number issued by Income Tax Department. This information is mandatory if PAN is required to be collected as per regulatory guidelines. (Optional) Mandatory B.6.8 Aadhaar Aadhar number issued by UIDAI Optional Number B.6.9 Identification Type Document submitted as proof of identity of the individual. Permissible values are: Validation A - Passport • B - Election Id Card • C PAN Card D - ID Card • E - Driving License • GUIDAI Letter • H - NREGA job card • Z - Others • ✗- Not Categorised B.6.10 Identification Number Number mentioned in the identification document. This information is mandatory if PAN or Aadhar number is not reported (Optional) Mandatory B.6.11 Occupation Type Permissible values are: Validation S - Service • B - Business • O - Others • ✗- Not Categorised B.6.12 Occupation Please speci....