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IT Department Makes Aadhaar Linkage Mandatory For Bank Accounts Opened In A Certain Period

Step taken to facilitate sharing of tax evasion data with the US.

12/04/2017 11:31 AM IST | Updated 12/04/2017 3:13 PM IST
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After making the linking to Aadhaar number mandatory for mobile numbers and tax filings, the government has now asked owners of bank accounts opened during a certain period to link them to their Aadhaar number.

The Income Tax department announced on Tuesday that holders of accounts opened between July 2014 and August 2015 will have to submit their Know Your Customer (KYC) documents and their Aadhaar number by 30 April.

As reported in the Times of India, the step has been taken to comply with Foreign Tax Compliance Act (FACTA) — a pact signed between India and the US. Signed in 2015, the pact enables the two countries to trade information about tax evaders automatically.

If the required information and documents are not submitted by 30 April, banks can block the accounts. Insurance and stock accounts have also been included in the order.

"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," the tax department said in a statement.

Meanwhile, the Ministry of Electronics and Information Technology (MeITY) is also promoting a campaign to link Aadhaar number with bank accounts.

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