The tax department has asked financial institutions (FIs) to get self-certification from account holders by 30 April to comply with FATCA provision.
The income tax department has issued notification that holders of bank accounts opened between July 1, 2014 and August 31, 2015 must self-certify by April 30 to comply with FATCA (Foreign Account Tax Compliance Act) provisions.
This basically means if you have opened an account between the aforementioned period, you need to submit all the essential documents with your banks before the due date, i.e. 30th of April, 2017.
What will happen if you didn’t submit the documents? Well, the bank will block your account and you will not be able to make any transactions. Those accounts can be unblocked only upon the completion of due diligence.
Account holders are informed that, in case self-certifications are not provided till 30.4.2017,A/Cs would be blocked : pic.twitter.com/YICvRHqfPm
— Income Tax India (@IncomeTaxIndia) April 11, 2017
The Central Board of Direct Taxes (CBDT) has directed all financial institutions to ensure all the qualified accounts are self-certified and FATCA-compliant before the due date.
The financial institutions include banks, insurance companies and stock trading firms.
What is FATCA?
FATCA or Foreign Account Tax Compliance Act is a US law. In July 205, India and the US entered into an agreement for automatic exchange of financial information between the two nations about tax evaders.
Account holders will also have to mention their Aadhaar numbers.