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Self-certification must for A/Cs opened from 1 Jul 2014 to 31 Aug 2017

The Central Board of Direct Taxes (CBDT) has said the bank accounts that were opened between 1 July 2014 and…

Self-certification must for A/Cs opened from 1 Jul 2014 to 31 Aug 2017

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The Central Board of Direct Taxes (CBDT) has said the bank accounts that were opened between 1 July 2014 and 31 August 2015 and being used for cross-border transactions will require submission of self-certification form.

The self-certification should be done besides updating the know-your-customer (KYC) data, sources said.

“All bank accounts that were opened between 1 July 2014 and 31 August 2015 will require submission of self certification forms,” the CBDT said, adding that “the form should be submitted by 30 April 2017”.

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“Account holders are informed that, in case self-certifications are not provided till 30 April 2017, A/Cs would be blocked,” the Income-Tax Department said in a tweet.

The notice was issued as per the Inter-Governmental Agreement (IGA).

The IGA with USA for implementation of Foreign Account Tax Compliance Act (FATCA) entered into force on 31 August 2015.

“As per Rule 114H(8) of the Income-tax Rules, 1962, financial institutions need to obtain self-certification and carry out due diligence in respect of all individual and entity accounts opened from 1 July 2014 to 31 August 2015,” according to a statement by the I-T Dept.

However, “The transaction by the account holder in such blocked accounts, may, thereafter, be permitted once the self-certification is obtained and due diligence completed,” it added. 

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