Link accounts to Aadhaar by April 30, says I-T dept
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New Delhi
TIMES NEWS NETWORK
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Lack Of Info May Lead To Blocking Of Accounts
Accounts opened from July
2014 to August 2015 will have to submit know your customer (KYC) details
and their Aadhaar number to banks and financial institutions by April
30 and self-certify them to comply with FATCA regulations (Foreign Tax
Compliance Act), the tax department said on Tuesday .
In case the
account holders are unable to furnish details and provide
self-certification by the new deadline, banks and financial institutions
have the option of blocking the accounts. Once the details are
furnished they can operate the accounts. The provision applies to
accounts which come under the ambit of FATCA regulations.
Banks and financial institutions were asked to obtain self-certification and carry out due diligence for all individual and entity accounts opened from July 1, 2014 to August 31, 2015 to comply with the Foreign Account Tax Compliance Act (FATCA) pact signed by India and the United States.
In July 2015, India and the US signed a tax information sharing agreement under a new US law, FATCA, aimed at bolstering efforts for automatic exchange of financial information between the two nations about tax evaders. The agreement covers automatic sharing of information on bank accounts as well as financial products such as equities, mutual funds and insurance and is aimed at fighting the menace of black money stashed abroad.
“In case self-certifications are not provided till April 30, 2017, the accounts would be blocked, which would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts,“ the tax department said in a statement.
“The transactions by the account holder in such blocked accounts may , thereafter, be permitted once the self-certification is obtained and due diligence completed,“ it said.
Tax officials said that the accounts would include banks, insurance, stocks.Account holders will also have to mention their Aadhaar numbers.
“Such self-certification and documentation was required to be obtained by the financial institutions by August 31, 2016, otherwise they were required to close the accounts and report the same if found to be a “reportable account“ as per prescribed due diligence procedure for preexisting account,“ the tax department said in a statement.
Banks and financial institutions were asked to obtain self-certification and carry out due diligence for all individual and entity accounts opened from July 1, 2014 to August 31, 2015 to comply with the Foreign Account Tax Compliance Act (FATCA) pact signed by India and the United States.
In July 2015, India and the US signed a tax information sharing agreement under a new US law, FATCA, aimed at bolstering efforts for automatic exchange of financial information between the two nations about tax evaders. The agreement covers automatic sharing of information on bank accounts as well as financial products such as equities, mutual funds and insurance and is aimed at fighting the menace of black money stashed abroad.
“In case self-certifications are not provided till April 30, 2017, the accounts would be blocked, which would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts,“ the tax department said in a statement.
“The transactions by the account holder in such blocked accounts may , thereafter, be permitted once the self-certification is obtained and due diligence completed,“ it said.
Tax officials said that the accounts would include banks, insurance, stocks.Account holders will also have to mention their Aadhaar numbers.
“Such self-certification and documentation was required to be obtained by the financial institutions by August 31, 2016, otherwise they were required to close the accounts and report the same if found to be a “reportable account“ as per prescribed due diligence procedure for preexisting account,“ the tax department said in a statement.
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