The Income Tax Department had set a deadline of April 30 for financial institutions to get accounts complaint with the Foreign Account Tax Compliance Act or FATCA. The deadline pertains to accounts opened between July 1, 2014 and August 31, 2015. The tax department had said that the accounts should be blocked if self-certification from account holders is not provided by April 30. News agency IANS said in a report citing mutual fund industry officials that in the case of mutual funds, the blocking kicked in automatically after the April 30 deadline ended.
“As per the mutual fund industry data, the total number of folios that were not FATCA compliant were between 8-9 lakh. Subsequently some of the investors may have submitted the self-certification forms,” the report quoted Gaurav Nagori, senior vice president-head of customer service and operation, DSP Blackrock Mutual Fund, as saying.
Much like a bank account number, a folio number is your account number in a mutual fund scheme, under which yours unit holdings in a mutual fund scheme are recorded in the unit holders’ register.