New Delhi, April 11, 2017
The Finance Ministry has said that accounts of those individuals who do not provide self-certification by April 30 to comply with FATCA provisions would be blocked.
“This would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts,” said the Central Board of Direct Taxes on Tuesday, adding that transactions in such accounts would be permitted only after the self-certification is obtained and due diligence completed.
The Inter-Governmental Agreement (IGA) with USA for implementation of FATCA was entered into force on August 31, 2015. Under the alternative procedure provided in Rule 114H (8) of the Income-tax Rules, 1962, the financial institutions have to obtain self-certification and carry out due diligence in respect of all individual and entity accounts opened between July 1, 2014 and August 31, 2015.
This was required to have been done by August 31 last year, failing which the accounts would be closed.
[The Hindu Business Line]