The prevalence of black money in India is a big challenge before the government. In fact, the demonetization of Rs 500 and Rs 1000 last year was a major step taken in the history of India to fight corruption and black money. In order to combat black money abroad, India signed an agreement with Switzerland today. Now, the tax- related information will be automatically shared from January 1, 2018 with this deal, shared by CBDT. Both the countries have promised that they will maintain the confidentiality of the matter and will be abide by the global rules.
Central Board of Direct Taxes on this deal
“With the completion of the parliamentary procedure in Switzerland and signing of mutual agreement, India and Switzerland are set for automatic exchange of information for the period beginning from January 1, 2018.”
A joint declaration for the implementation of Automatic Exchange of Information was signed last month between the two sides here, and it provided that both countries would start collecting data in accordance with the global standards in 2018 and exchange it from 2019 onwards.
It is known that Switzerland has always been at the centre of the debate on black money for Indians. Switzerland is also known for having secrecy walls when it comes to banking practices. Hence, this new deal between Switzerland and India will bring about a lot of changes in curbing black money circulation.