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11
April 2017
The
central government on Tuesday announced its decision to block accounts of those
individuals who do not provide self-certification by April 30.
This
would be done in order to comply with the provisions of the Foreign Account Tax
Compliance Act (FATCA). The Total Investment
& Insurance Solutions
"This
would mean that the financial institution would prohibit the account holder
from effecting any transaction with respect to such accounts," a Finance
Ministry statement said here.
"The
transactions by the account holder in such blocked accounts may, thereafter, be
permitted once the self-certification is obtained and due diligence
completed," it added.
An
inter-governmental agreement between India and the US was signed in August 2015
for the implementation of FATCA, to ensure tax is paid on the income generated
from abroad.
Under
Indian income tax rules, financial institutions have to obtain self-certification
and carry out due diligence in respect of all individual and entity accounts
opened between July 1, 2014, and August 31, 2015. The Total Investment & Insurance Solutions
This
was required to have been done by August 31, 2016, failing which the accounts
were supposed to be closed.The Total
Investment & Insurance Solutions
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