FATCA --- New Opportunity

Shaking hands at one end may sometimes translate to a shake-down at the other. The recent bonhomie between the US tax authorities and their counterparts in India under the FATCA or US Foreign Account Tax Compliance Act could be a case in point.

What it essentially boils down to is that folks serving in the US and earning an income there shall have to pay tax on incomes generated through assets parked abroad. Till now the Indian community in the US, being true-blue Indians brought the green stuff here and parked it in investments or business and earned handsomely which was later repatriated back to the US. Who loses in the bargain is a no-brainer! To stem this tide, the US tax authorities have tied up with the Indian tax agencies to share information on individuals. Once in place (yes it may take a while for the whole juggernaut to fall in place), authorities in the US can scan all expats in the US to see who earns how much from what in India.

Like a cat let loose amongst feeding pigeons, this law too is witnessing action in India with US-based NRIs running helter-skelter and selling all assets abroad (read India) which exists in their name and is giving them returns. Not to be caught on the wrong foot, these hapless folks are selling and selling like there is no tomorrow- at par, less than par….anything, including transferring it in the name of their close ones who are at arms’ length lest the tax man smelling something rotten.

The thing that is worth learning from this experience for all and sundry is:

• Keep your nose clean. Comply with all the relevant laws which apply to you and file the expected returns and paper work well in time. This way, you don’t lose sleep and can earn brownie points with the power-that-be where-ever they be!
• FATCA-like laws have multi-country implications which besides humongous in monetary layout has humongous laws to deal with. Try and get hold of the best brains at both the ends so as to get things clear. Clarity keeps law authorities at bay. Period.
• Besides legal specialists, keep compliance specialists close at hand.

While at one end it’s going to add one more compliances it’s also opportunity for Professionals. And yes, if you are a lawyer, a CA or any of those, this could be a gold mine of an opportunity! Wait for essential clarity on how to go about it which shall invariably come from the authorities.

And yes cloud platform helps lot in this to remove the location dependency and you can work with your choice of customers from anywhere anytime.

It is cheaper, better and hassle-free. What more could one ask for? For you it would be just plug….and play! As for the rest, there are people to help you at each step. If this sounds interesting, please be informed it is! Email us at sales@cadashboard.com to know more or visit us at https://www.cadashboard.com