Rule 114F and Rule 114H of the Income Tax Rules, 1962

Rule 114F and Rule 114H of the Income Tax Rules, 1962, are related to the reporting of reportable accounts under the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).

• Rule 114F defines a reportable account as an account held by a non-resident Indian (NRI) in a financial institution in India.
• Rule 114H requires financial institutions in India to report information about reportable accounts to the tax authorities.

The information that needs to be reported includes the name, address, and PAN of the account holder, the account number, the balance in the account, and the type of account.

The reporting of reportable accounts is important for compliance with FATCA and CRS. FATCA is a US law that requires foreign financial institutions to report information about accounts held by US citizens and residents. CRS is an international standard for the automatic exchange of financial account information.

The reporting of reportable accounts helps to combat tax evasion and money laundering. It also helps to ensure that all taxpayers are paying their fair share of taxes.

Here are some of the key provisions of Rule 114F and Rule 114H:

• Scope: The rules apply to all financial institutions in India, including banks, non-banking financial companies (NBFCs), and mutual funds.
• Reporting: Financial institutions must report information about reportable accounts to the tax authorities on an annual basis.
• Information to be reported: The information that needs to be reported includes the name, address, and PAN of the account holder, the account number, the balance in the account, and the type of account.
• Penalties: Financial institutions that fail to comply with the rules may be subject to penalties.

I hope this helps! Let me know if you have any other questions.