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The recent amendments to the double taxation avoidance agreement (DTAA) between India and Switzerland entered into force on Monday (October 10).
India can now seek banking related information from Switzerland for tax administration purposes. However, the provision on information exchange will apply only for information relating to tax years that start on or after January 1, 2011.
In August last year, India and Switzerland had inked an agreement to amend the existing DTAA. The revised treaty was approved by Swiss Parliament on June 17. As per the Swiss rules, all bilateral tax treaties are subject to public scrutiny for 100 days. In the case of the revised DTAA with India, the public scrutiny period ended on October 6.
The revised DTAA with India in the area of taxes on income and capital entered into force today (October 10), the Swiss Federal Department of Finance said in a statement on Monday.
The provisions of the revised DTAA will apply in India to income originating in tax years which start on or after April 1, 2012. In Switzerland, they will apply to income originating in tax years which begin on or after January 1, 2012.
The DTAA will contribute to the further development of bilateral economic relations, the statement added.
The total deposits of Indian individuals and companies in Swiss banks stood at about $2.5 billion at the end of 2010, according to the latest data from the Swiss National Bank..
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