Mumbai: If you are one of those who had opened their bank accounts between July 2014 to August 2015, this news is for you. As per fresh notification by The Income Tax department of India, it is mandatory to submit your Aadhar number along with your KYC (Know Your Customer) details to your respective banks or financial institutions. You must do this by April 30.
The KYC and Aadhar copy must be self-certified to comply with Foreign Tax Compliance Act (FATCA). FATCA is a tax information sharing agreement which was signed between the US and India, to strengthen the automatic exchange of financial information between the two nations about tax evaders.
The Income Tax Department has also asked Banks and Financial Institutions to intimate their customers the effect or repercussion of not submitting these documents before April 30.
It stated, “The account holders may be informed that in case self-certifications are not provided till April 30, 2017, the bank accounts will be blocked which would mean that the financial institutions would prohibit the account holders from effecting any transactions with respect to such accounts.”
Further clarifying, it stated that these blocked accounts can be revoked once the self-certifications are received and due diligence completed.