India has 96 double taxation avoidance treaties with other countries and 14 bilateral information exchange pacts
The government on Monday said it has received a wealth of information about Indians who hold financial assets in the US after a bilateral agreement aimed to prevent offshore tax evasion has been set in motion on September 30.
“A wealth of information has come to us from the US post October 1,” revenue secretary Hasmukh Adhia said, referring to the exchange of information between the two tax authorities that has started under the Foreign Account Tax Compliance Act (FATCA). India has as many as 96 double tax avoidance treaties with other countries and 14 bilateral information exchange pacts. The country is also a signatory to a multilateral information exchange deal which would take effect from 2017, Adhia said.
In the three-month compliance period offered to tax evaders to come clean on their unreported overseas assets, the government has received disclosure of Rs 4,147 crore. The figure has been updated from the earlier reported Rs 3,770 crore. The total number of disclosures at 638 remained the same as stated last week.
The brass in the government including finance minister Arun Jaitley has promised tough action against foreign asset holders who have not made use of the compliance window.
Under the black money law, having hidden foreign wealth would fetch up to ten years of rigorous imprisonment, tax and penalty amounting to 120% of the value of such wealth in addition to confiscation of the asset.