UNDERSTANDING ALL ABOUT FATCA
Dear Investor,
Are you an existing mutual fund investor? If answer is YES, then you must have got an email from the fund houses where you have invested to provide some additional information about yourself and about your tax residency related questions in the name of FATCA declaration.
What is FATCA Compliance?
Foreign Account Tax Compliance Act or FATCA was passed in US in the year 2010 to make sure that the financial institutions across the world share some basic information of their US based clients.
A lot of investors from US (US citizen and NRI’s residing in US) were supposed to disclose their investments outside the US, but it didn’t happen the way US govt was expecting.
So finally, US govt passed this FATCA law and signed treaties with various countries across the world. India is one of them. So now various financial institutions based in India are asking all their customers to give a declaration about their tax residency, place of birth and if they are paying taxes in any other countries.
The main purpose of this article is just to help you understand, how you can update these FATCA details quickly in 2 min online.
All mutual funds investors are supposed to update their information with AMC’s by the end of Dec 2015.
If an investor fails to update their FATCA declaration, then their additional investments will not be processed in future and any SIP which is currently running will also get stopped. So it’s suggested that you complete the declaration as soon as possible. Note that your existing investments will remain intact and there is no impact on that.
How to update your FATCA related information online?
It’s very simple. All you need to do is visit the following links and update your information.
Investments With CAMS As registrar (For E.g HDFC,Birla,DSP BR,Tata,ICICI Pru,HSBC,IDFC,Kotak Etc)
Investments With KARVY As registrar (For E.g AXIS MF,Mirae Asset MF, Reliance,IDBI Etc.)
Investments With Sundram As registrar (For E.g AXIS MF,Mirae Asset MF, Reliance,IDBI Etc.)
Investments With Franklin Templeton Mutual Fund
When you update your information online, an OTP will be generated which will be send to your email/phone which is registered in their records. If you are invested in mutual funds which are services by CAMS (like Birla, ICICI, HDFC etc) , you just need to update the first link (cams one). If you are invested in mutual funds which are serviced by Karvy like Reliance, UTI or Canara Robeco,Mirae Aseet Etc) then you will have to update the karvy link as well.
Feel free to contact us for Further any Information.
Mehul Bheda
Certified Financial Planner
M- +91 9819592326
E-mebheda@gmail.com
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