New Delhi: You bank account is under threat. Under directions from the Income Tax department, the banks will block your account if you do not get your account linked to Aadhaar. We will tell you a simple method to avoid blocking of your account.
Now, everybody is required to submit not only Aadhaar details, but also Know Your Client (KYC) details and self-certified FACTA form to banks. FACTA forms are avaiable at banks
What is FACTA
FATCA is a tax information sharing agreement that India and US have signed. It allows for automatic exchange of financial information between the two nations about tax evaders.
How to be KYC-compliant
If you do transactions via bank, then it is mandatory for you to be KYC compliant. Visit your bank, if you are not, and be one. You will need one or more of these following documents to be a KYC-compliant:
1. Voter ID card
2. Aadhaar Card
3. Driving Licence
4. PAN Card
5. NREGA Card
That is, you need to present one identity proof and one address proof to become KYC-compliant. However, now Aadhaar is mandatory, so you must submit your Aadhaar number to banks and get it updated along with your KYC update.
Now, if you do not do this by April 30, the banks will block your accounts. The IT department has asked the banks to inform the account holders about the consequences of non-compliance. "The account holders may be informed that, 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 IT department notification said.
The transactions by the account holder in blocked accounts will be allowed once the self-certification is obtained and due diligence is completed.