India gets a month more to sign FATCA

NEW DELHI: India and some other countries have got one more month from the US to sign the Foreign Account Tax Compliance Act ( FATCA), an agreement which seeks to facilitate flow of financial information.

“US has given a month's extension to India and some other counties to sign FATCA,” Revenue Secretary Shaktikanta Das said. The initial deadline set by the US for signing FATCA was December 31.

“The finance ministry will seek the Cabinet nod before going ahead and signing FATCA,” Das added. Under FATCA, US government will sign inter-governmental agreement for sharing of information with various countries, including India, where American individuals and companies have accounts and other assets.

The non-compliance with FATCA would entail 30 per cent withholding tax on US source payments. Under the pact, the exchange of information between the countries will be subject to a confidentiality clause.