India, US to intensify cooperation in tax evasion cases

Tags: News
India and the United States have decided to enhance cooperation for automatic exchange of information on tax evasion and detection of financial crimes, shoring up efforts to crackdown on blackmoney cases involving economic channels of the two countries.

A team of the US Treasury officials recently met Indian Income Tax and CBDT officials for negotiating an Inter-Governmental Agreement (IGA) which will enable faster access to tax evasion related information and tax crimes by individuals and entities of the two countries.

India, since 2009, has a Double Taxation Avoidance Agreement (DTAA) treaty with the US which is also under revision for betterment of protocols.

"The US is a strategic partner when it comes to combating blackmoney and automatic exchange of classified information on tax evasion cases. High-level negotiations are underway to enter into a IGA as stipulated under the Foreign Account Tax Compliance Act (FATCA) of the economic superpower," sources privy to the development told PTI.

The Central Board of Direct Taxes (CBDT), which is the nerve agency of the government in blackmoney cases as it administers the I-T department, recently also began talks on the Mutual Agreement Procedure (MAP) with the US officials.

These talks, sources said, have begun after an interval of more than a year and two rounds of discussions have already been held between the authorities.

"In fact, four important cases under MAP were resolved with the US during this financial year," the sources said.

MAP is an alternative available to taxpayers for solving disputes giving rise to double taxation, whether judicial or financial. The MAP procedures are also listed in the DTAA protocol.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks must learn from past mistakes to promote financial inclusion

    Prime minister Narendra Modi launched a massive financial inclusion programme yesterday titled “pradhan mantri jan dhan yojana’ (PMJDY), that will

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Parvez Imam

Sowing the seeds of love for hatred

No wonder we have a whole lot of talking going ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture