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

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

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Foreign Government or foreign agencies

  2. B

    Indian Government

  3. C

    Indian Tax authorities

  4. All of the above

    Correct answer

Why this is the answer

Under FATCA, financial institutions (including mutual funds) collect information about foreign accounts and report it to the US Internal Revenue Service (IRS), Indian Government, and Indian Tax Authorities. This data is used by all relevant authorities for compliance and reporting purposes.

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