India's fight against black money will get a boost in September when the government will receive detailed financial information on bank accounts held by Indians in Switzerland, including those accounts that were closed last year.
Minister of State for External Affairs, V Muraleedhran, in a written statement to the Lok Sabha, on Wednesday said, that India will start receiving information on an automatic basis from September about financial accounts held in Switzerland by Indian residents.
Under the Automatic Exchange of Information (AEOI) framework, Switzerland will be sharing details including account numbers, credit balance and all kinds of financial income for each Indian client of every Swiss financial institution to Indian tax authorities.
According to Switzerland's Federal Department of Finance (FDF), the first set of this information will be sent in September, followed by further dispatches on a yearly basis. This would be in addition to the details already shared by Switzerland with India for nearly 100 Indian entities, including individuals and enterprises, on submission of prima facie evidence of their financial wrongdoings, under a bilateral pact for administrative assistance on tax matters.
When asked whether the government would reveal those names, the minister, however, said the "use and disclosure of the information" is governed by confidentiality provisions.
Besides India and Switzerland, a number of other countries have also signed the AEOI pacts as part of a global crackdown on tax evasion.
Inputs from PTI