New Delhi: Under the FATCA and CRS, Financial Institutions (FIs) can now obtain self-certification through internet banking platform from the user account where the customer has transaction rights, the CBDT said on Friday.
“Representatives of FIs have informed that there are large number of financial accounts and it is practically very difficult to physically obtain the self-certification from the account holders. It has been requested to provide alternative channels to obtain self-certification,” CBDT said in a statement.
“In view of the above, it has been decided that self-certification can also be obtained through Internet Banking platform from the user account where the customer has transaction rights,” it said.
The Central Board of Direct Taxes (CBDT) further clarified that valuation of securities may be done at the values regularly communicated by Depository (CDSL/NSDL) to the depository participants and brokers.
Referring to issues of Tax Identification Number (TIN), the apex direct tax body said that TIN is not required to be collected by the FIs if TIN (including its functional equivalent) is not issued by the relevant country or territory outside India in which the person is resident for tax purposes.
“It is also clarified that TIN is not required to be collected by the FIs even from a person (resident for tax purposes in a country or territory outside India ) who may be eligible to obtain a TIN (or the functional equivalent) in his country or territory of residence, but has not yet obtained a TIN,” the CBDT said.
The Foreign Account Tax Compliance Act (FATCA) came into effect from September 30 which has enabled automatic exchange of financial information between India and the US.
The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis.