Reporting requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) revised through Income-Tax Act, 2025 read with Income-Tax Rules, 2026

SEBI Circular on FATCA/CRS Reporting under the Income-tax Act, 2025
Ref: HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026 | Dated: November 11, 2026
Addressed to: All SEBI-registered intermediaries, stock exchanges, and depositories

Regime change: The Income-tax Act, 2025 and IT Rules, 2026 replaced the 1961 Act from April 1, 2026. FATCA/CRS reporting now falls under Section 508 and Rules 238 to 240, with Form 166 replacing Form 61B.

Legal authority
Issued under Section 11(1) of the SEBI Act, 1992 read with Rule 239(12)(a) of the IT Rules, 2026.

Applicability: SEBI-registered intermediaries that qualify as Reporting Financial Institutions must comply with Rules 238 to 240 and follow the CBDT Guidance Note dated July 24, 2026.

Mandatory system updates:
1. Self-certification procedures must capture the validity indicator.

2. Controlling Person identification must capture roles (settlor/trustee/protector/beneficiary/other).

3. Account classification must capture account type and pre-existing/new status.

4. Form 166 XML generation software must include all new mandatory fields; omissions will cause validation errors on the Income Tax portal.

KRA upload: FATCA/CRS certifications obtained from clients must be uploaded to the KYC Registration Agencies’ systems.

Conclusion: The responsibility for obtaining and reporting FATCA/CRS certification and related compliances lies solely with the intermediaries.