April 30: Last day to link Aadhaar card with bank accounts, avoid blocking
New Delhi : As per notification issued by the Income Tax department on April 11, today (April 30) is the last day to link Aadhaar number with bank accounts to avoid blocking of accounts opened from July 2014 to August 2015.
According to the notification, account holders will have to submit their know your customer (KYC) details and Aadhaar number to banks and financial institutions by April 30 and self-certify them to comply with Foreign Tax Compliance Act or FATCA.
The income tax department had also asked banks to notify their customers about the move.
"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 transactions in such blocked accounts will be permitted only after the user will provide the necessary documents.
As per Income Tax notification, these financial institutions were asked to obtain self-certification and carry out due diligence for all individual and entity accounts opened from July 1, 2014 to August 31, 2015 to comply with the FATCA signed by India and the United States.
FATCA is a tax information sharing agreement which was signed to bolster the efforts for automatic exchange of financial information between the two nations about tax evaders.