The Income Tax department on Tuesday issued a fresh notification making Aadhar number and self-certification mandatory for accounts opened from July 2014 to August 2015. Failing to do so could mean that the your account gets blocked.
The measure was announced by the Income Tax department on Tuesday and it 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 department also asked the financial institutions to inform the customers about the repercussions if they fail to submit the details. It said: “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.”
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.
Meanwhile, the Ministry of Electronics and Information Technology is also promoting a campaign to link Aadhar number with bank accounts.