Bank accounts to be linked to Aadhar card by April 30 or face blockade: IT department
Bank accounts linked to Aadhar card
In its latest step to ensure that all cash remains accountable, the Income Tax department has announced that it is now, compulsory for all customers to link any bank accounts opened between July 2014 and August 2015 to submit their Know Your Customer (KYC) documents and their Aadhar number by 30 April. Failing to do so could mean that the account gets blocked.
The measure was announced by the Income Tax department on Tuesday and aims to comply with the Foreign Tax Compliance Act (FACTA), a deal which India signed with the united States. As per the mutual agreement, the two countries can exchange information about tax evaders very easily.
The order also includes the linkage of insurance and stock accounts. Clarifying on the order, the Income Tax department said in a statement, 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.
Indicating that the current deadline was long past the initial date set, the statement added, “Such self-certification and documentation was required to be obtained by the financial institutions by August 31, 2016, otherwise they were required to close the accounts and report the same if found to be a “reportable account” as per the prescribed due diligence procedure for pre-existing account.”
Further, in cases where the account holder is not able to provide the details by the set deadline, banks and financial institutions can temporarily block the accounts until they are furnished.
Further, in cases where the account holder is not able to provide the details by the set deadline, banks and financial institutions can temporarily block the accounts until they are furnished. The move comes just after the government made it Aadhar cards mandatory for obtaining SIM cards and filing income taxes.