The era of Black Money Over, Income Tax Department acquires Swiss Bank Details of Indians

From September 1, India will begin accepting data on every single money related record held by Indian inhabitants in Switzerland, for the year 2018. In a tweet on August 31, the Income Tax Department stated: "India will get data of the schedule year 2018 in regard of every money-related record held by Indian inhabitants in Switzerland. This will be a huge advance in the Government's action against dark cash as the time of Swiss bank secret will, at last, be finished."

What will this mean for India, and the way can the exchange of data be governed?

The Income Tax office's declaration pursues a gathering between Switzerland's Nicolas Mario Luscher, Deputy Head of Tax Division, State Sectt for International Finance, with Revenue Secretary Ajay Bhushan Pandey and senior authorities of the Central Board of Direct Taxes (CBDT), on August 29-30.

In November 2016, the Embassy of India to Switzerland in an announcement had stated: "On 22 November 2016, Switzerland and India marked a joint assertion on the presentation of the automatic exchange of information (AEOI) in expense matters on an equal premise. The two nations plan to begin gathering information as per the worldwide AEOI standard in 2018 and to trade it from 2019 onwards."

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This automatic exchange of information (AEOI) is to be completed under the Common Reporting Standard (CRS), the worldwide announcing standard for such trade of data, which deals with viewpoints, for example, privacy principles and information shields. The CRS has been created by the Organization for Economic Cooperation and Development (OECD).

Under the understanding, India won't get data on financial balances preceding 2018.

As per the Indian Embassy articulation, under the understanding, "the two locales will illuminate each other of any significant advancements regarding the usage of the OECD Common Reporting Standard in their particular household laws. Every purview affirms that it has educated the other ward about the modalities made accessible to people making an intentional divulgence of their money related resources for a smooth change to the arrangement of programmed trade of data."

The progression is probably going to reveal more insight into the riches Indians have buried in Swiss financial balances, for such a long time administered by exacting nearby guidelines of a secret.

by Ishan Soni | Mon, Sep 02 - 03:27 PM

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