New FATCA Reporting Deadline Announced for Indian Banks

New FATCA Reporting Deadline Announced for Indian Banks

🏦 New FATCA Reporting Deadline Announced for Indian Banks

📅 Updated Compliance Timeline | July 2025

The Income Tax Department of India has issued a revised deadline for FATCA (Foreign Account Tax Compliance Act) reporting by Indian financial institutions, particularly banks and mutual fund companies. This development is in line with global efforts to ensure transparency in cross-border financial dealings.

🔍 What is FATCA?

The Foreign Account Tax Compliance Act is a U.S. law that requires non-U.S. financial institutions (FFIs) to report information about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

🌐 FATCA is part of the India-U.S. Inter-Governmental Agreement (IGA) signed in 2015.

📌 Key Highlights of the New Deadline

⏰ Revised Deadline

  • New Reporting Deadline: August 31, 2025

  • Applies to reporting for the calendar year 2024

  • Previously, the deadline was July 31, 2025

🖥️ Reporting Mode

  • All reporting must be done via the Income Tax Reporting Portal

  • Entities must register under the FI registration module before submission

🏦 Who Must Comply?

The following financial institutions are covered:

  • Commercial & Cooperative Banks

  • NBFCs

  • Mutual Fund Houses

  • Insurance Companies

  • Depository Participants

Failure to comply can result in penalties under the Income Tax Act, including non-compliance notices and revocation of financial privileges.

📑 Reporting Requirements

🔐 Information to be Disclosed:

  • Name, address & Tax Identification Number (TIN) of U.S. account holders

  • Account number and balance/value

  • Gross interest/dividends or other income

📁 Format of Submission:

  • File to be uploaded in XML format as per IRS schema

  • Digital Signature Certificate (DSC) is mandatory

📣 CBDT Circular & Clarification

In its recent circular, the Central Board of Direct Taxes (CBDT) clarified:

  • The extended timeline aims to reduce the compliance burden

  • Institutions are advised to test their XML files and validate TINs before submission

✅ Actionable Steps for Banks & Institutions

🔧 Update internal compliance tools
 📚 Train staff on FATCA due diligence
 🔎 Conduct pre-submission reviews
 📤 Upload only validated & digitally signed reports
 📆 Mark internal calendars for the new deadline

📝 Conclusion

The extension of the FATCA reporting deadline offers a brief but crucial window for Indian banks and financial institutions to strengthen their compliance and avoid regulatory penalties. In a global era of tax transparency, accurate and timely FATCA reporting not only safeguards institutions from non-compliance but also enhances credibility and trust in the international financial ecosystem.

📌 Compliance Today = Confidence Tomorrow

Created & Posted By Nishu Sharma

 Sales and Marketing Executive at TAXAJ      

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ

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