Direct Tax
1. India-USA sign historic, reciprocal Foreign Account Tax
Compliance Act, ("FATCA") agreement to fight black money
menace
Recently, India–USA has signed FATCA Agreement containing
the ten Articles which will help to detect and discourage offshore
tax evasion and to fight the menace of black money. This Inter
Governmental Agreement ("IGA") shall enter into force on
the date of India's written notification to the US that India
has completed its necessary internal procedures for entry into
force of the Agreement. The following are key points of FATCA
Agreement:
- Article 2 provides for obligations to obtain and exchange
information with respect to Reportable Accounts. In India's
case, information with respect to each US Reportable Account
(accounts of US Citizen and residents) of each Reporting Indian
Financial Institution may be obtained and exchanged. Similarly, in
case of US, information with respect to each Indian Reportable
Account (Indian
