Banks to block accounts in absence of self certification, necessary for FATCA compliance
The self-certification is necessary to comply with provisions of the Foreign Account Tax Compliance Act (FATCA).
"Account holders are informed that in case self-certifications are not provided till 30.4.2017,A/Cs would be blocked," the department tweeted on Tuesday.
A statement issued by the IT department too emphasised on the compliance. It said, "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 further said that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts.
Transactions by the account holder in such blocked accounts may, thereafter, be permitted once the self certification is obtained and due diligence completed, the IT department said.
The compliance is in relation to the Inter-Governmental Agreement (IGA) signed with the US for implementation of FATCA entered into force on August 31, 2015.
Image: IncomeTax Twitter
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