In its continuing drive to check tax evasion and
proliferation of black money, India has signed a protocol with the U.K.
for amending the convention between the two countries for avoidance of
double taxation and prevention of fiscal evasion with respect to taxes
on income and capital gains.
The protocol — signed in
London on October 30 by India’s High Commissioner to the U.K., Jaimini
Bhagwati, and U.K.’s Exchequer Secretary to the Treasury, David Gauke,
on behalf of the two countries — amends the earlier Double Taxation Avoidance Convention (DTAC) that was inked here on January 25, 1993.
The protocol incorporates in the DTAC provisions for effective exchange
of information between the tax authorities of India and the U.K. in line
with the latest international standards, including exchange of banking
information and supplying of information irrespective of domestic
interest.
In the amended DTAC, there would now be a new article on assistance in
collection of taxes. The article also includes provision for taking
measures of conservancy. The protocol also incorporates into the
convention anti-abuse (limitation of benefits) provisions. Further, both
countries are to enter into MoUs to expedite exchange of information
and assistance in collection of taxes.
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