India To Blacklist Countries Who Don't Share Tax Info
The Section 94A in the Income Tax Act of budget 2011-2012 the finance ministry had introduced that countries who don’t cooperate in information exchange can be notified.
It said an Indian citizen involving into deals with such notified countries would be deprived of certain income tax benefits.
After the provision came into effect from June 2011, the government’s intention was just to use it as “a threat” and not to jeopardise India’s trading relations with any other country. But now the government is planning to warn the rules within a week and this may be seen as a forerunner to blacklisting of one or two non-cooperating countries.
“We are expediting the notification of rules because a few countries may have to be notified as non-cooperating and blacklisted,” said a government official.
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