According to new regulations released by the tax department, account bearers who opened their bank accounts between July 2014 and August 2015 need to submit their KYC details and Aadhar card number before April 30 to avoid repercussions.
These details are required under the FATCA regulations (Foreign Tax Compliance Act) signed between India and the United States, and banks and financial institutions have been given the right to block the accounts of those who fail to comply with these regulations. However, the good news is that these accounts will be operable again once the details have been furnished.
According to the tax department, the accounts in question can be bank accounts, insurance, and stocks. Account holders have to mandatorily mention their Aadhar numbers when furnishing KYC details and self certify the same.
The FATCA is an American federal tax law passed in 2010. India and the US signed a tax information sharing agreement under FATCA in July 2015, which aims at bolstering information sharing between the two countries and avoiding tax evasion.