India amending Double Taxation Avoidance Agreement says, finance minister Pranab Mukherjee

The government is amending the Double Taxation Avoidance Agreement it has with four countries and is also negotiating with 16 entities to improve information sharing on black money as part of the Tax Information Exchange Agreement.

Finance minister Pranab Mukherjee said in response to a query during question hour in the Lok Sabha that many domestic companies would make investments abroad as the Indian economy becomes more integrated with the global economy. This, he said, would require avoidance of double taxation by both the countries involved in the trade.

The finance minister added that in order to improve sharing of information on black money, the government is negotiating with 16 entities and the agreements would be completed by October this year. He said after the accords, information on black money would be available from April 1, 2011.