India likely to ink FATCA this week

By: | Published: July 8, 2015 12:52 AM

India and the US have moved closer to putting in place a framework to track down the assets that nationals of each country hold in the other nation without reporting to domestic tax authorities.

India and the US have moved closer to putting in place a framework to track down the assets that nationals of each country hold in the other nation without reporting to domestic tax authorities.

India is likely to sign later this week an inter-governmental agreement with the US to facilitate the sharing of investment details of citizens to tackle tax evasion, sources said. The US had earlier given India time till September 30 for putting in place the framework. Information sharing between the countries is expected to commence from October 1.

Under the pact, insurance, banking, pension and stock broking firms in India have to report their US client details to the income tax department for eventual sharing with its treaty partner.

The US Foreign Account Tax Compliance Act (FATCA) mandates all US citizens, resident and non-resident, to report their foreign accounts at the end of the tax year.

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