GUIDANCE NOTE ON IMPLEMENTATION OF REPORTING REQUIREMENTS UNDER RULES 114F TO 114H OF THE INCOME-TAX RULES, 1962

Updated as on 31st December 2015

Income Tax Department has published the above guidance note for the Purpose of providing guidance to the Financial Institutions, Regulators and officers of the Income Tax Department for ensuring compliance with the reporting requirements provided in Rules 114F to 114H and Form 61B of the Income-tax Rules, 1962.

Earlier CBDT vide notification no. 62/2015 dated 07-08-2015 had notified Rules 114F, 114G and 114H  and by further notification no. 03/2015 dated 25-08-2015 notified the procedures for registration and submission of reports.

The Guidance Note is intended to explain the reporting requirements of Foreign Account Tax Compliance Act  (FATCA) and Common Reporting Standard (CRS) in a simple manner. Since a large part of the Rules is based on IGA between India-USA and the CRS on Automatic Exchange of Information (AEOI), the Financial Institutions may refer to the Inter Government Agreement (IGA) and CRS along with its Commentary to get further understanding of the terms used. In this Guidance Note, reference to the CRS and Commentary has been made at appropriate places.

The Guidance Note has been divided into six broad headings:

1. Introduction
2. Reporting Financial Institutions
3. Financial accounts which are reportable accounts
4. Due Diligence Procedure
5. Reporting Requirements
6. Issues related to Trusts etc.
7. Procedure for furnishing reports
8. Monitoring and compliance
9. Contract details for further verification

Following annexures/appendix have also been provided for ready reference:
Annexure A: Jurisdictions committed to implement AEOI in accordance with CRS and signatories of MCAA
Appendix A: IGA between India and USA
Appendix B: Common Reporting Standard
Appendix C: Rules 114F to 114H of Income-tax Rules, 1962 and Form 61B
Appendix D: Draft Self-Certification for Individual
Appendix E: Draft Self-Certification for Entities.

As per the note, an attempt has been made to discuss and describe the various provisions contained in the relevant Rules notified by the Government of India. However, in case of unlikely event of any inconsistency between the Rule, all the stakeholders have been requested to provide feedback and suggestions so that Guidance Note can be further updated as per evolving issues in the implementation of FATCA and CRS.

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