KYC, PAN, FATCA and the steps to buy Indian funds from abroad
An Indian fund folio needs KYC, usually a PAN, and a tax-residence form, and a folio held by someone taxed abroad is reported each year. Here are the steps, the papers and what is reported.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.
A fund house needs three things before it takes a rupee from abroad: KYC (know your client) on record, a PAN (India's tax number; small SIPs are an exception) and a form saying where you are tax resident. We call the set the Folio Boarding Pass. Below: each paper, what is reported, and one key date, 3 December 2026.
- KYC is done once and stored with a KRA (KYC registration agency) and the CKYC registry.
- From 3 December 2026 fund houses may accept online KYC from NRIs and OCIs in FATF-compliant countries; it is no right and does not itself change any fund house's policy.
- Each folio holder signs a FATCA and CRS form, and the fund house reports each reportable folio by 31 May each year.
The steps
| Step | What happens |
|---|---|
| Check policy | Read its limits on U.S. and Canadian residents |
| Papers | Passport, OCI card, attested copies, PAN, FATCA and CRS form |
| Pay | From your own NRE, NRO or FCNR(B) account or abroad, never a relative's |
| Order | Direct plan (no distributor commission); money in by 3:00 pm usually gets that day's NAV (unit price) |
From 3 December, copies can be attested by a notary, an Indian consulate or an overseas branch of an Indian bank; apostille is not listed.
What is reported
For each reportable folio the fund house tells India's tax department your name, address, foreign tax number, year-end value and gross payouts, redemptions included, on Form No. 166 (once Form 61B), due 31 May for the previous calendar year. India passes U.S. folios to the IRS under an agreement in force since 31 August 2015, and others to CRS partners (86 on the November 2026 list, Canada and the UK among them). A U.S. citizen or resident is reportable even while living in India.
Mistakes people make
- Assuming apostille satisfies SEBI KYC; it appears in the PAN rules, not in SEBI's KYC circular.
- Letting a relative pay for units.
- Leaving "India only" on the FATCA and CRS form after moving; a false form can cost Rs 5,000 a folio, recoverable from you.
Our checklist
The Folio Boarding Pass, for each new folio:
- Passport, OCI card and overseas address proof, attested.
- PAN, with its Form 93 or 95 receipt.
- The dated FATCA and CRS form with your foreign tax number.
- Proof of payment, with date and NAV.
Common questions
Can I complete KYC online from the U.S. or Canada?
From 3 December 2026 a fund house may accept it for NRIs and OCIs in FATF-compliant countries. It does not change FEMA or, by itself, any fund house's policy.
Is a PAN always needed?
Generally yes. SEBI exempts SIPs up to Rs 50,000 a year, not NRIs in particular.
What if I move to the U.S. or Canada later?
Update your KYC address and status and the FATCA and CRS form. The "30 days" on some forms is fund house wording, not a rule we found. See [heirs and moving](/indian-mutual-funds/india-rules/inheritance-and-changing-residence/) and our [Indian CPA page](/indian-cpa/).
Official sources
- SEBI: Review of KYC process for individual PROI clients, 4 November 2026
- SEBI: Master Circular for Mutual Funds, 20 March 2026
- Income Tax Department: Income-tax Rules 2026, rule 239 (reporting by financial institutions)
- Income Tax Department: Income-tax Rules 2026, rule 158 (PAN applications)
- Income Tax Department: Automatic exchange of information
- U.S. Treasury: Foreign Account Tax Compliance Act
- MFCentral: Frequently asked questions
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