India and Switzerland will start exchanging information on tax-related matters from the next fiscal after the new tax information exchange treaty is ratified by the Swiss Parliament on Thursday, paving the way for obtaining data on black money stashed in Switzerland.
“It (information sharing) will take place from the first day of the next financial year – January 1, 2012 for Switzerland and April 1, 2012 for India,” M Ganapathi, secretary (west), ministry of external affairs, said in Vienna while briefing reporters on President Pratibha Patil’s just concluded visit to Switzerland. The move comes at a time when the issue of black money has become a major concern with political parties and civil society taking up the matter.
The revised treaty would allow India to access tax related information from the Swiss authorities with a prospective effect.
Hi
“If the black money is brought back to India, only 20% tax will be deducted and the source will not be questioned.
The rest 80% should be invested only in infrastructure development.”
If this rule is implemented by Central Govt. it will be very helpful.
Can taxguru communicated to the Government?