Under the chairmanship of Prime Minister Narendra Modi, the Union Cabinet took decision that Indian Government approved signing and ratification of the agreement between India and Seychelles for exchange of information with respect to taxes, to check Black Money Generation.
- The agreement between India and Seychelles for tax purposes will help to curb tax evasion and avoidance.
- Under the agreement, information received under the agreement shall be treated as confidential and may be disclosed only to persons or authorities concerned with assessment, collection, enforcement, prosecution or determination of appeals, in relation to taxes covered.
- India has already signed an inter-governmental agreement with the U.S. to implement the Foreign Account Tax Compliance Act (FATCA), a significant step towards curbing overseas tax evasion and black money.
- India has signed similar bilateral agreements for Exchange of Tax Information with Argentina, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Liechtenstein, Macao, Monaco and San Marino.
- Under section 90 of the Income Tax Act, 1961, Indian Government is authorized to enter into an agreement with a foreign country or specified territory for exchange of information for the prevention of evasion or avoidance of income-tax.