Financial Institutions now obtain self certification through internet banking platform

Q.  Under which two statues can financial institutions now obtain self-certification through internet banking platform from the user account where the customer has transaction rights?
- Published on 30 May 16

a. FATCA
b. CRS
c. TADA
d. Both a and b
e. None of the above

ANSWER: Both a and b
 
As per FATCA and CRS, Financial Institutions/FIs can now get self certification through internet banking platform from the user account where the customer has transaction rights. Reps of FIs have informed that a massive number of financial accounts are there and physically obtaining self certification from the account holder is not easy.
  • CBDT further clarified that valuation of securities may be done in the values regularly communicated by Depository (CDSL/NSDL) to the depository participants and brokers.
  • Referring to issue of Tax Identification Number, apex direct tax group said TIN is not needed to be collected by FIs if TIN is not issued by the country or territory outside India for which person is resident for tax purposes
  • TIN is not needed to be collected from persons by FIs in his country or territory of residence who can get TIN, but has not yet obtained it
  • FATCA stands for Foreign Account Tax Compliance Act which came into effect from September 30 which enabled automatic exchange of financial information between India and United States
  • CRS stands for Common Reporting Standard which has been developed response to the G20 request and approved by OECD Council on 15 July 2014.

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