Bank accounts to be blocked after Apr 30 if not self-certified is an important announcement by income tax department of India. On Tuesday, they have asked to all the banks to obtain self-certification from customers and carry out due attention in respect of all individual and entity accounts opened from July 1, 2014, to August 31, 2015, to comply with FATCA( foreign Account Tax Compliance Act) provisions. The I-T department said if the self-certification is not submitted by April 30, 2017, then the accounts would be blocked. This would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts.
“Once blocked the account holder can only be allowed to do some transaction once the self-certification is obtained and due diligence completed”, the tax department’s press release said.
CBDT said, “The financial institutions are advised that all efforts should be made by the financial institutions to obtain the self-certification”. The account holders may be informed that, in case self-certifications are not provided till 30 April 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.