Banks to seek more details from account holders under amended Income Tax Rules, 1962; check what new information you may have to share

Recent amendments to India’s Income Tax Rules require banks to report more detailed account information, aligning with global standards. The changes expand the definition of financial assets to include crypto-assets and enhance transparency for joint accounts and controlling persons, indirectly affecting individuals by increasing disclosure and tax oversight. Kumarmanglam Vijay, Partner and head of practice, direct tax, JSA told ET Wealth Online: The new reporting obligations for banks and reporting financial institutions (RFIs) under Rule 114G of the Income Tax Rules, 1962 specifically target accounts other than US reportable accounts. Vijay from JSA points out that for high-net-worth individuals (HNIs), these amendments could lead to piercing the veil on offshore trusts and family offices. Read more