The agreement for the avoidance of double taxation (DTAA) between India and Switzerland has been amended to allow India access to information about bank accounts held in Switzerland for tax purposes under certain circumstances.
A protocol amending the India-Switzerland DTAA was signed in August 2010. The process of ratifying it in the Swiss parliament was completed on 7 October. The provisions apply to income arising in India after 1 April 2012 and in Switzerland after 1 January 2012. This is because the Swiss financial year begins in January, while India’s financial year begins in April. The earlier version of the DTAA only permitted India to access bank-related information from Switzerland in cases of tax fraud.
The amended DTAA will allow India to request specific information related to bank accounts in Switzerland from 1 January 2011. “It is true that the exchange of information shall apply retroactively,” Mukesh Butani, a partner at BMR Advisors told India Business Law Journal.
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