India and Switzerland had signed an Automatic Exchange of Information (AEOI) deal according to which India will start getting information automatically about accounts held by Indians in Swiss banks from September 2019.
An official statement by Finance Ministry quoted, “It will now be possible for India to receive from September, 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.”
Tax experts have claimed that this would restrain the abuse that the Swiss financial system to hide black money. Fighting the hazard of black money hoarded in offshore accounts is a key priority for the government and so this move is said to play the most crucial role in helping government fight against black money.
Joint Declaration was signed today in Delhi by Mr Sushil Chandra,Chairman,CBDT& Gilles Roduit,Dy Chief of Mission of Swiss Embassy in India. pic.twitter.com/6I4sA26Mor
— Ministry of Finance (@FinMinIndia) 22 November 2016
Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra and Deputy Chief of Mission in the Swiss embassy, Gilles Roduit, signed the joint declaration for implementation of Automatic Exchange of Information between the two nations.
Modi’s demonetization drive has been receiving harsh criticism from opposition parties. This drive aims at catching hold of black money and this deal for information exchange will surely be beneficial. PM Modi on Tuesday invited views of common man on the demonetization drive though introducing a survey NM app.