Automatic Exchange of Information Agreement: India will soon start receiving the information of the Swiss bank account data held by the Indians from September 2019. This move is expected to seize the black money hoarded by the Indians that is stashed abroad.
Automatic Exchange of Information Agreement signed between India and Swiss bank
“As a result, it will now be possible for India to receive from September 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis”, said the Finance ministry in a statement on Tuesday.
The Chairman of Central Bank of Direct Taxation (CBDT) Sushil Chandra and the Swiss embassy Deputy Chief of India Gilles Roduit signed a joined declaration on Tuesday for initiating the ‘Automatic Exchange of Information’.
The talks regarding the need to implement the ‘Automatic Exchange of Information’ had already begun when Swiss President Johann Schneider-Ammann and PM Narendra Modi had met in Geneva earlier this year in June. Both the heads had decided that such a mechanism needs to be introduced that would bring forth the names of the black money hoarders and through this, the problem of tax evasion will also be solved.
PM Narendra Modi has vowed to bring back the black money stashed abroad in India. After taking one of the biggest decisions of demonetisation, the agreement on the Automatic Exchange of Information between Swiss bank and India will prove to be a great breakthrough.
