The cabinet approved the ratification of an agreement between India and the Seychelles for exchange of information on taxes, which is expected to help in the fight against unaccounted wealth.
India has already signed an inter governmental agreement with the US to implement Foreign Tax Account Compliance Act (FATCA) which is considered to be as a significant step towards curbing overseas tax evasion and black money.
“This is part of the ongoing initiative of the government of India to unearth black money,” communications and information technology minister.
The agreement with the Seychelles also provides for a mutual agreement procedure to resolve any procedural differences. Information received under the agreement can be disclosed to any other person or entity with prior written consent of the country sending such information.
This would curb the black money practices and would be easy to tap the defaulters because of the understanding that is taking place as per policies and agreements entered into under Multi Bilateral tie-ups with the foreign nations.
