n NISM Certifications
V-A NISM Series V-A
Medium

Who ultimately uses the information collected under the Foreign Account Tax Compliance Act (FATCA)?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Foreign Government or foreign agencies

    Correct answer

  2. B

    Indian Government

  3. C

    Indian Tax authorities

  4. D

    All of the above

Why this is the answer

FATCA (Foreign Account Tax Compliance Act) is a U.S. law.Indian financial institutions (like AMCs, banks) must collect & report information about U.S. persons’ accounts to the Indian Income Tax Department, which then shares it with the U.S. IRS under the intergovernmental agreement (IGA). The primary and the ultimate user of FATCA data is the U.S. Government (IRS). Indian authorities only act as reporting intermediaries, not as end-users of the data. So, the correct answer = A.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

Nism VA Mock Test 3