Sun. Jan 24th, 2021

Agreement signed between India and US to implement the Foreign Account Tax Compliance Act (FATCA)

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On 09.07.2015, India and United States
signed an Inter-Governmental Agreement (IGA) to implement the Foreign Account
Tax Compliance Act (FATCA). The objective of the agreement is to promote
transparency between the two nations on tax matters and improve international
tax compliance. The agreement is an important step for the Government of India
to tackle offshore tax evasion and fight the menace of black money by enabling
the Indian tax authorities to receive financial account information of Indians
from foreign countries on an automatic basis. The exchange of information on
automatic basis, regarding offshore accounts under FATCA would deter tax
offenders, would enhance tax transparency and eventually bring in higher equity
in to the direct tax regime for a healthy economy.


-Ministry of Finance
Source: Legal news India

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