New Delhi:The Income Tax department has started a fresh campaign to catch black money hoarders and tax evaders. A new Income Tax notification asked the banks and financial institutions to block bank accounts of those persons who have not updated their personal data.
You have time till April 30 to get your bank accounts linked with Aadhaar, if you do not do that your accounts will be blocked. Not only Aadhaar, you also need to submit know your customer (KYC) details to avoid blocking of your account. You wil also have to self-certify these documents.
This is mandatory for accounts opened from July 2014 to August 2015. The step has been taken to comply with Foreign Tax Compliance Act or FATCA.
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.
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.