Financial institutions need to get accounts self-certified for FATCA by April 30
April, 13th 2017
Financial institutions need to obtain self-certification from each account holder by April 30 to comply with the Foreign Account Tax Compliance Act (FATCA) and avoid blocking of accounts, the Central Board of Direct Taxes said on Tuesday.
In a statement, the CBDT said that “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 apex direct taxes body advised all financial institutions that they should make all efforts to obtain self-certification.
India had entered into an agreement with the United States for implementation of the FATCA with effect from August 31, 2015. Under the income tax rules, the financial institutions had to obtain self-certification from account holders by August 31, 2016, in respect of all individual and entity accounts opened from July 1, 2014 to August 31, 2015.
But in view of difficulties faced by stakeholders, the CBDT had on August 31, 2016, indefinitely extended the deadline for complying with self-certification norms.
The FATCA allows automatic exchange of financial information between India and the US.