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Not filled FATCA compliance! your bank account could be frozen

If You Are A Bank Account Holder And Invested In Mutual Funds Or In Any Insurance Scheme, You May Be In Trouble As Your Bank Account Could Be Frozen.

News Nation Bureau | Edited By : Shashikant Sharma | Updated on: 01 May 2017, 06:34:28 PM
Not filled FATCA compliance! your bank account could be frozen

New Delhi:

If you are a bank account holder and invested in Mutual funds or in any insurance scheme, you may be in trouble as your bank account could be frozen. 

Yes! you may not be allowed to operate your account opened between July 1, 2014, and August 31, 2015, if it is not compliant with FATCA.

What is this FATCA? 

FATCA stands for Foreign Account Tax Compliance Act. It enables automatic exchange of financial information between India and the US.

On August 31, 2015, an inter-governmental agreement with the US came into the effect for implementing FATCA.

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Financial institutions were asked to obtain self-certification and carry out due diligence procedure to determine the reasonableness of the self-certification in respect of all individual and entity accounts opened from July 1, 2014 to August 31, 2015.

Indian financial institutions have to provide necessary information to Indian tax authorities, which will then be transmitted to the US.

So if you have an investors or account holder, you have to provide a self-certification about 'tax residency' to your bank or finance company for compliance with FATCA by 30th April. Failing to this your account will be blocked.

So, if you have not done that! hurry up and do it now as the last date has already gone. 

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First Published : 01 May 2017, 06:13:00 PM