India’s fight against black money is going strong

To boost its fight against black money, India has signed the global pact on exchange of information on financial accounts. As per an ET report, this will enable India to receive information from almost every other country in the world including offshore financial centres. The information will help prevent international tax evasion and be instrumental in getting Indian tax authorities information on assets of Indians held abroad including through entities in which Indians are beneficial owners.
Other than India, other countries to have signed the pact in Paris include Australia, Canada, Costa Rica, Indonesia and New Zealand.
“This will help the government curb tax evasion and deal with the problem of black money," a press statement by the finance ministry reads. India had skipped inking of the pact last year after the Supreme Court asked the government to make public information that it received under treaties. The government is obliged not to make the information public. After having secured a go-head from the Justice MB Shah-headed Special Investigation Team on black money, the government has signed the international accord.
As per the ET, 94 countries have committed to exchange information on an automatic basis from 2017 as per the new global standards on automatic exchange of information, known as Common Reporting Standards on Automatic Exchange of Information.

The declaration to comply with the provisions of the MCAA was signed by Mohan Kumar, India's Ambassador to France.
For implementation of these standards in India and with a view to provide information to other countries, necessary legislative changes have been made through Finance (No. 2) Act, 2014, by amending section 285BA of the Incometax Act, 1961. Necessary rules and guidelines are being formulated in consultation with financial institutions.
The Central Board of Direct Taxes has directed its officials to ensure that information on individuals holding black money abroad is strictly kept secret as any "careless" act could give an excuse to any country to stop sharing crucial data with India.
(Image credit: Indiatimes)