AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Income–tax (11th Amendment) Rules, 2015
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.... (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 customer with a financial institution that is not a non-participating financial ins....
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....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 single premium life insurance contract which does not permit an amount to be paid on surrender or termination of ....
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....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 deductible or excluded from the gross total income of the account holder or taxed at a reduced rate, or taxation of investment income fr....
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.... (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) or (B) or from one or more retirement or pension funds that meets the requirements of clauses (e), (f) or (g) of Explanation to clause (1) of this rule; &nb....
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....sp; (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 person's obligation) when the property is sold, exchanged, or surrendered, or the lease terminates; &nbs....
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....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 others and where its income attributable to the holding of financial assets and related financial services equals or exceeds twenty per cent. of its gross income during the three financial years preceding the ....
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....sp; 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 FATCA agreement), but does not include,- (a) an Indian financial institution; or (b) other jurisdiction, being a jurisdiction that has in effect....
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...., 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 accounts; (l) sponsored investment entity and controlled foreign corporation, in case of any U.S. reportable account; or (m) sponsored closely held investment vehicle, in case of....
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....bsp; 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 private persons if such persons are the intended beneficiaries of a Governmental programme, and the programme activities are performed for the general public with respect to the common welfare or relate to the administration of a Department of Government: &n....
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....ion 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 withdrawals from the fund are allowed only in the event of retirement, disability or death [except rollover distributions to other retirement funds referred to in clauses (E) to (G), or retirement and pension accounts referred to in sub-clause (i) of clause (h) of Explanation to clause (1)], or penalties which apply to distributi....
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.... 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 fund" means a fund established under the Provident Funds Act, 1925 (19 of 1925) or the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) to provide current and former employees of Indian employers retirement benefits in consideration for services rendered: Provided that fun....
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.... (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 upon surrender; (iii) the collective investment vehicle performs the due diligence procedures set forth in rule 114H and reports any information required to be reported with respect to any such shares when such shares are presented for redemption or other payment; and (iv) the collective investment....
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....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 person who is not a resident of India (including a non-resident who was a resident of India when the financial account was opened but subsequently ceases to be a resident of India) or any passive non-financial entity with controlling persons who are reportable persons; (vii) such policies and procedures explicitly provide that if any financial account held by a repor....
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....nbsp; (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 related entity must be incorporated or organised in India, and any related entity that is a financial institution, with the exception of any related entity that is a retirement fund referred to in clauses (D) to (G) or a financial institution with only low-value accounts referred to in clause (P), must satisfy the requirements set forth in this clause. Explanation.- Regional Rural Banks c....
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.... (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 that agrees to act, or requires an affiliate of the financial institution to act, as a sponsoring entity for the financial institution; and (c) the financial institution shares a common electronic account system with the sponsoring entity that enables the sponsoring entity to identify all account holders and payees of the financial institution and to access all account and customer in....
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.... 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 institution, all due diligence, withholding, reporting, and other requirements which the financial institution would have been required to perform if it were a reporting financial institution; (iii) the financial institution does not act as an investment vehicle for unrelated parties; (iv) twenty or less than twenty individuals own all the debt interests and equity interests in the fin....
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.... 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 that has a meaningful annual value of shares traded on the exchange; (iii) the entity is a Governmental entity, an International Organization, a Central Bank, or an entity wholly owned by one or more of these entities; or (iv) substantially all of the activities of the entity consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage....
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....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 (e) the applicable laws of the entity's country or territory of residence or the entity's formation documents require that, upon the entity's liquidation or dissolution, all of its assets must be distributed to a Governmental entity or other non-profit organization, or escheat to the Government of the entity's country or territory of residence or any political sub-division thereof. Explanation.- For the purpose of this sub-claus....
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.... 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; (iv) rents and royalties (other than rents and royalties derived in the active conduct of a business conducted, at least in part, by employees of the non-financial entity); (v) annuities; (vi) the excess of gains over losses from the sale or exchange of financial assets which gives rise to the passive income; (vii) the excess of gains over losses from transactions (including futures, forwards, options, and simi....
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.... (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; (c) a trust if,- (i) a court within the United States of America would have authority under applicable law to render orders or judgments concerning substantially all issues regarding administration of the trust; and (ii) one or more U.S. persons have the authority to control all substantial decisions of the trust; or (d) an estate of a decedent who was a citizen or resident of the United States of America;  ....
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....sp; (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 equivalent in the absence of an account number); (d) the account balance or value (including, in the case of a cash value insurance contract or annuity contract, the cash value or surrender value) at the end of relevant calendar year or, if the account was closed during such year, immediately before closure; (e) in the case of any custodial account,- (i) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to th....
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....e 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" means the person listed or identified as the holder of a financial account by the financial institution that maintains the account: Provided that a person, other than a financial institution, holding a financial account for the benefit or on account of another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding the account, and such other person is treated as holding the account: Provided further that in the case of a cash value insurance contract or an annuity contract, the accou....
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....y 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 account, a nil statement shall be furnished by the reporting financial institution. (8) The statement referred to in sub-rule (7) shall be furnished in Form No. 61B for every calendar year by the 31st day of May following that year: Provided that the statement pertaining to calendar year 2014 shall be furnished by the 31st day of August, 2015. (9) (a) The statement referred to in sub-rule (7) shall be furnished to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this p....
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....ancial 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; (b) "Principal Officer" means an officer designated by the reporting financial institution; (c) "regulator" means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activities of the reporting financial institution. (11)(a) The regulator referred to in clause (c) of sub-rule (10) shall issue instructions or guidelines to,- (i) incorporate the requirements of reporting and due diligence procedure specified under rules 114F to 114H; (ii) provide the procedure and manner of maintaining the information by the reporting....
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....-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 30th June, 2014 or 31st December of any subsequent year; and (ii) in case of other reportable account, exceeds an amount equivalent to one million U.S. dollars as on the 31st December, 2015 or 31st December of any subsequent year; (c) "lower 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 fifty thousand U.S. dollars but does not exceed an amount equivalent to one million U.S. dollars as on the 30th June, 2014; and ....
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....bsp; (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 contract, the balance or value does not exceed an amount equivalent to two hundred and fifty thousand U.S. dollars as on the 30th June, 2014, subject to sub-clause (vi) of clause (c) of this sub-rule; or (C) which is a cash value insurance contract or an annuity contract, the reporting financial institution, under any other law for the time being in force in India or of the United States of America, is prevented from selling such contract to a person who is a resident of the United States of America; (ii) in case of other reportable account, which is a cash value insurance contract or an annuity contract, the reporting financial institution, und....
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....ed 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, then the reporting financial institution shall treat the account holder as resident for tax purposes of each such country or territory for which an indicium is identified, unless it elects to apply sub-clause (v) and one of the exceptions in the said sub-clause applies with respect to that account; (iv) if a "hold mail" instruction or "in-care-of" address is discovered in the electronic search and no other address and none of the other indicia listed in items (A) to (E) of sub-clause (i) are identified for the account holder, the reporting financial institution shall apply the paper record search referred to in sub-clause (ii) of clause (c), or seek to obtain from the account holder a self-certification or documentary evidence to establish the residence or resi....
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....n 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 country or territory outside India, the reporting financial institution obtains, or has previously reviewed and maintains a record of,- (I) a self-certification from the account holder of the country or territory or countries or territories of residence for tax purposes of such account holder that does not include any country or territory outside India; and (II) documentary evidence establishing the account holder's non-reportable status; (C) of any country or territory outside India if, the account holder's information....
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....02 (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 than with respect to a depository account) to transfer funds currently in effect: Provided that where the electronically searchable databases include fields for, and capture all the information referred to in sub-clause (iii) of this clause, then review of the customer master file and documents referred to above shall not be required; (iii) a reporting financial institution is not required to perform the paper record search referred in sub-clause (ii) of this clause to the extent the reporting financial institution's electronically searchable information includes the following, namely:- (A) the account holder's residence status for tax purposes; ....
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....side 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 "in-care-of" address is discovered in the electronic search and no other address and none of the other indicia referred to in items (A) to (E) of sub-clause (i) of clause (b) are identified for the account holder, the reporting financial institution shall obtain from such account holder a self-certification or documentary evidence to establish the residence or residences for tax purposes of the account holder: Provided that if the reporting financial institution cannot obtain such self-certification or documentary evidence, it shall report the account as an undocumented account; (vi) if a pre-existing individual account is not a high value account as on the 30th June, 2014 (for U.S. reportable account), or as the case may be, 31st December, 2015 (for other reportable account), but becomes a high value account a....
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....unt 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 on this review such account is identified as a U.S. reportable account after the 31st December, 2014 and on or before the 31st December, 2015, the reporting financial institution is not required to report information about such account with respect to calendar year 2014, but shall report information about the account on an annual basis thereafter; (ii) in case of a U.S. reportable account which is low value account as on the 30th June, 2014, or in case of other reportable account which is high value account as on the 31st December, 2015, shall be completed by the 30th June, 2016; (iii) in case of other reportable account that is low value account as on the 31st December, 2015, must be completed by the 30th June, 2017; (e) any pre-existing individual account which has been identified as a reportable acc....
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....ing 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) of rule 114G, and date of birth; (d) where a self-certification has been obtained under clause (b) of this sub-rule for a new individual account and if there is a change of circumstances with respect to such account which causes the reporting financial institution to know, or have reason to know, that the said self-certification is incorrect or unreliable, the reporting financial institution shall not rely on the said self-certification and shall obtain a valid self-certification that establishes the residence or residences for tax purposes of the account holder: Provided that if the reporting financial institution is unable to obtain a valid self-certification, the reporting financial institution shall treat the account as a reportable account with respect to each such country or territory outside India for which an indicium is identified. &....
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....s: 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 reported shall be treated as reportable accounts; (d) for pre-existing entity accounts referred to in clause (b) with respect to which reporting is required, a reporting financial institution, to determine whether the account is held by one or more reportable persons, or by a passive non-financial entity with one or more controlling persons who are reportable persons, or by non-participating financial institutions, shall apply the following review procedures namely:- (i) to determine whether the entity is a reportable person, the reporting financial institution shall,- (A) review information maintained for regulatory or customer relationship purposes (including information collected in accordance with the rules made under the Prevention of Money-laundering Act, 2002 (15 of 2003)) to determine whether the information indicates that the account ho....
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....ine 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 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 obtain a self-certification from the account holder to establish its status, unless it has information in its possession or which is publicly available, based on which it can reasonably determine that the account holder is an active non-financial entity or a financial institution other than an investment entity referred to in sub-clause (B) of clause (c) of Explanation to clause (3) of rule 114F; (B) for purposes of determining the controlling persons of an account holder, a reporting financial institution may rely on information collected and maintained in accordance with the rules made under the Prevention of Money-laundering Act, 2002 (15 o....
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....bsp; (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-certification or other documentation associated with the account is incorrect or unreliable, the reporting financial institution shall re-determine the status of the account in accordance with the procedures set forth in clause (d) of this sub-rule. (6) The following procedures shall apply for purposes of identifying reportable accounts and accounts held by non-participating financial institutions among new entity accounts, namely:- (a) a reporting financial institution, to determine whether the new entity account is a reportable account, shall apply the following review procedures namely:- (i) determine whether the entity is a reportable person and for that the reporting financial institution shall,- (A) obtain a self-certification, which may be part of the account opening d....
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....nt holder is not a passive non-financial entity; (B) for purposes of determining the controlling persons of an account holder, a reporting financial institution may rely on information collected and maintained in accordance with the rules made under the Prevention of Money-laundering Act, 2002 (15 of 2003); (C) for purposes of determining whether a controlling person of a passive non-financial entity is a reportable person, a reporting financial institution may rely on a self-certification from the account holder or such controlling person; (b) the reporting financial institution shall determine whether the account holder is a non-participating financial institution and in such case any payment to the account holder shall be reported as per clause (h) of sub-rule (1) of rule 114G. (7) The following additional procedures shall apply in implementing the due diligence requirement specified in sub-rules (1) to (6), namely:-  ....
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....quired 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 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; (iii) for purposes of determining the aggregate balance or value of financial accounts held by a person to determine whether a financial account is a high value account, a reporting financial institution shall also be required, in the case of any financial accounts that a relationship manager knows, or has reason to know, are directly or indirectly owned, controlled, or established (other than in a fiduciary capacity) by the same person, to aggregate all such accounts; (iv) for the purposes of rules 114F, 114G and this rule, any account maintained in rupees or in any permissible currency (other than the United States Dollar) as designated by the Reserve Bank of India shall be converted ....
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....he account is identified as a U.S. reportable account or as an account held by a non-participating financial institution, as applicable; and (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 the information required to be reported with respect to such a new account shall be information which would have been reportable had the new account been identified as a U.S. reportable account or as an account held by a non-participating financial institution, as applicable, as of the date the account was opened; (c) by the date that is one year after the date of entry into force of the FATCA agreement, reporting financial institutions shall close any new account described in clause (a) for which it was unable to collect the required self-certification or other documentation in accordance with the procedure specified in clause (b): &nbs....
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....th Amendment) Rules, 2014 vide notification S.O. number 2070(E), dated the 29th July, 2015. ============= Document 1 "FORM NO. 61B [See sub-rule (8) of rule 114G] Statement of Reportable Account under sub-section (1) section 285BA of the Income-tax Act, 1961 (see instructions for guidance) PART A: STATEMENT DETAILS (This information should be provided for each Statement of Reports submitted together) A.1 REPORTING ENTITY DETAILS A.1.1 Reporting Entity Name A.1.2 ITDREIN A.1.3 Global Intermediary Identification Number (GIIN) A.1.4 Registration Number A.1.5 Reporting Entity Category Insert 2 character code A.2 STATEMENT DETAILS A.2.1 Statement Type Insert 2 character code A.2.2 Statement Number A.2.3 Original Statement Id A.2.4 Reason for Correction Insert 1 character code A.2.5 Statement Date A.2.6 Reporting Period A.2.7 Report Type Insert character code A.2.8 Number of Reports A.3 PRINCIPAL OFFICER DETAILS A.3.1 Principal Officer Name A.3.2 Principal Officer Designation A.3.3 Principal Officer Address A.3.4 City/Town A.3.5 Postal Code A.3.6 State Code A.3.7 Country Code Insert 2 character code Insert 2 character code A.3.8....
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.... Insert 2 character code Insert 2 character code B.5 B.5.1 B.5.2 LEGAL ENTITY DETAILS (To be provided for entity account holder) Name of the Entity Customer ID B.5.3 Account Holder Type for US Reportable Person Insert 2 character code Account Holder Type for Other B.5.4 Insert 2 character code Reportable Person B.5.5 Entity Constitution Type Insert 1 character code B.5.6 Date of Incorporation B.5.7 Nature of Business B.5.8 PAN B.5.9 Identification Type Insert 1 character code B.5.10 Identification No. B.5.11 Identification issuing Country Insert 2 character code B.5.12 Place of Incorporation B.5.13 Country of Incorporation Insert 2 character code B.5.14 Country of Residence as per tax laws Insert 2 character code B.5.15 Tax Identification Number (TIN) allotted by tax resident country B.5.16 TIN Issuing Country B.5.17 Address Type Insert 2 character code Insert 1 character code B.5.18 Address B.5.19 City/Town B.5.20 Postal Code B.5.21 State Code B.5.22 Country Code B.5.23 Mobile/Telephone Number B.5.24 Other Contact Number B.5.25 Remarks 45 Insert 2 character code Insert 2 character code B.6 CONTROLLING PERSON DET....
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....REIN is a 16-character identification number in the format XXXXXXXXXX.YYYYY where XXXXXXXXXX is the PAN or TAN of the reporting entity and YYYYY is a sequentially generated number. The reporting Entity may use a dummy number (PAN+99999 or TAN+99999) till the ITDREIN is communicated. Requirement Validation Validation A.1.3 GIIN GIIN means the Global Intermediary Identification Number which is a 19-character identification number in the format XXXXXX.XXXXX.XX.XXX assigned to the reporting entity by USA. Validation A.1.4 Registration Number A.1.5 Reporting Entity Category This number is the registration number or any number used in correspondence with the regulator of the financial institution. Category of reporting entity are: • DI - Depository Institution • Cl- Custodial Institution Optional Validation • IE- Investment Entity • IC Specified Insurance Company OT- Other In case if a Reporting Entity is engaged in more than one category of activities, it needs to submit different statements for different category of activities. For example if a reporting entity is maintaining certain accounts as depository institution and certa....
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....le, if reporting information for the accounts or payments made in calendar year 2014, the field would read, “2014-12- 31" Validation A.2.7 Report Type Type of report in the Statement. One Statement can contain only one type of report. Permissible values are: Validation - 01 Report of US reportable accounts under Rule 114G 02 - Report of other reportable accounts under Rule 114G A.2.8 Number of Reports Number of Reports in Part B. Validation A.3.1 Principal Officer Name Name of the Principal Officer. Refer to the registration requirement under Income-tax Act and Rules Validation 2 S. No. A.3.2 Principal Officer Element Description Designation of the Principal Officer. Requirement Validation Designation A.3.3 Principal Officer Complete address consisting of house number, building name, street, locality, city, state etc. Validation Address A.3.4 City Town Name of City, Town or Village Validation A.3.5 State Code The two digit state code has to be mentioned as per Indian Motor Vehicle Act 1988. If state code is not available, use XX. Validation A.3.6 Postal Code In case of India, the 6 digit Pin code as per India Posts has to be....
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....1 - International Bank Account Number • - 02 Other Bank Account Number 03 - International Securities Information Number • 04 - Other Securities Information Number • 05 - Any other type of account information B.1.6 Account Holder Name B.1.7 Account Status B.1.8 Account Treatment Indian banks may use option 02 above. Name of first/sole account holder. Status of the account. Permissible values are: • • • • • • A - Active: Account is in regular use/policy in force I - Inactive: Account is not in regular use/ policy lapsed D - Dormant: As defined by regulator (e.g. There is no transaction in the account for two years, paid up policy lapsed after paying premiums for 3 or more years) S― Suspended: Account/policy is temporarily suspended F - Frozen: Account/policy is frozen (including case of debit freeze) C- Closed: Account is closed/policy foreclosed, surrendered, death or maturity claim paid Z-Others: Not listed above • X - Not categorized: The information is not available. Permissible values are: • N: New account as per Rule 114H B.1.9 B.1.10 • P: Pre-existing as p....
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.....10 Mobile B.2.11 Fax Contact Mobile number. Please do not add "0" before the number Optional Fax number in format STD Code-Telephone number. (Example 0120- 2894016) Optional B.2.12 Email E-mail of the Branch head Optional B.3.1 Account balance or value at the end of reporting period The cash value insurance or annuity contract is the balance or value of the account. For Debt or equity accounts, the account balance is the value of the debt or equity interest that the account holder has in the financial institution. The account balance or value of the reported financial account as on the last day of the reporting period. In case if the account was closed during the reporting period then the balance immediately before closure. (Mandatory for all account types) Validation B.3.2 B.3.3 Aggregate gross 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 informatio....
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....e. Such types include nick names ("nickâ€), names under which a party does business ("dba" a short name for the entity, or a name that is used for public acquaintance instead of the official business name) etc. The possible values are: • N1= SMFAliasOrOther • N2= indiv Optional* • N3= alias • N4= nick • N5= aka • N6= dba • N7= legal • N8= atbirth 6 S. No. Element B.4.2 Customer ID Description Customer ID/Number allotted by the reporting entity. This information is mandatory if Customer ID/Number is allotted. 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 Docu....
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....de as per ISO 3166 has to be mentioned. If Country Code is not available, use XX. (Optional) Mandatory This information is mandatory for foreign national or non-resident in certain situations. B.4.19 Address Type Indicates the type of the address. Permissible values are: Validation • 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 ....
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....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 entity. (Optional) The Country Code as per ISO 3166 has to be mentioned This data element describes the tax residence country for the entity being reported upon and m....
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....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 includes a beneficial owner as determined under to sub-rule (3) of rule 9 of Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Validation Reporting of Controlling person is mandatory for accounts of Passive Non-Financial Entity (F2, C1) Preceding Title Title of the person such as “His Excellencyâ€, “Estate of the lateâ€. Title Optional* Greeting title of ....
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....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 specify occupation of the individual. Optional 12 S. No. Element B.6.13 Birth Date B.6.14 Nationality B.6.15 Country of Residence as per tax laws Description This data element identifies the date of birth of the Individual Account Holder. The data format is DD/MM/YYYY. This information is mandatory if valid PAN is not reported. 2 character Country Code (ISO 3166) This data element describes the tax residence country code(s) for the individual being reported upon and must be present in all data records. The Country Code as per ISO 3166 has to be mentioned. If the individual is certified or treated as tax resident in more than one jurisdiction then this element may be r....