FATCA: Indian Financial Institutions Permitted to Block Accounts
India’s Central Board of Direct Taxes (CBDT) issued an update regarding the US-India FATCA IGA. India and the USA entered into a Model 1 IGA for implementation of FATCA on 31st August, 2015. As part of the IGA implementation, India’s income tax rules included an alternate procedure for due diligence (Rule 114H(8)). If the financial institution determined that the self-certification was unacceptable and the account holder failed to cure the defect by 31 August 2016, then the f