Tax & Compliance Updates — 11 November 2026
1 update today: 1 Income Tax. SEBI has directed all registered intermediaries that are Reporting Financial Institutions to align their FATCA and CRS reporting and due diligence with the Income-tax Act, 2025 and the Income-tax Rules, 2026, through a circular dated 11 November 2026.
In this update
Income Tax
SEBI aligns FATCA and CRS reporting by intermediaries with the Income-tax Rules, 2026
SEBI has issued Circular No. HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026 dated 11 November 2026 to all SEBI-registered intermediaries, stock exchanges and depositories. It notes that FATCA and CRS reporting, earlier governed by section 285BA of the Income-tax Act, 1961, rules 114F to 114H and Form 61B, is now governed by section 508 of the Income-tax Act, 2025 read with rules 238, 239 and 240 and Form 166 of the Income-tax Rules, 2026. Intermediaries that are Reporting Financial Institutions must comply with rules 238 to 240, build these requirements into client onboarding and KYC, and update their self-certification procedures (validity indicator), controlling person roles (settlor, trustee, protector, beneficiary or other), account classification (account type and pre-existing/new status) and Form 166 XML software for all new mandatory fields. They must also upload the FATCA and CRS certifications obtained from clients to the KYC Registration Agencies; the onus of obtaining and reporting these certifications lies solely with the intermediary.
Action: Brokers, portfolio managers, AIF managers and other SEBI-registered intermediaries should check whether they are Reporting Financial Institutions and update their KYC forms and Form 166 reporting systems. Investors, especially NRIs, trusts and entities with foreign links, should check that their FATCA/CRS self-certification with each intermediary is complete and current.
Official source: SEBI Circular HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026 dated 11 November 2026
Related reading: Income-tax Rules 2026: Old vs New Form Numbers (Form 61B is now Form 166).
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Compiled from official sources linked above. Last updated 11 November 2026. This is general information, not advice on any particular case.
