India signed a new Act with US Government which is known as FATCA. It is Foreign Account Tax Compliance Law. It will definitely help to fight Tax evasion.
In US, it is aimed at preventing tax evasion by Americans by sharing financial details with other countries. There will be greater transparency between India and US on tax matters.
The agreement was signed by Revenue Secretary Shaktikanta Das and US ambassador Richard Verma. It is a bold step taken by Indian government in response to black money.
The exchange of information on regular basis regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity into the direct tax regime,” Das said.
Indian financial institutions need to provide revenue information of US Tax payers to US tax authorities. Similarly, US Government follow same protocol.
“The signing of the inter-governmental agreement on FATCA is a landmark event in furthering the Indo-US relationship,” said international accounting firm KPMG in India Partner Himanish Chaudhuri.
Indian government is committed to the confidentiality of data and is taking required measures to ensure it.
“A security committee has been set up within CBDT (Central Board of Direct Taxes) headed by the chief information security officer for security of documents and information,” he said.
FATCA will cover all accounts opened from July 1, 2014 onwards, in Indian Financial Institutions.
India starts receiving information through Automatic Exchange of Information (AEOI) under FATCA from US later in the year.
Ruchi Anand and Associates, the internal auditor in India was looking in the depth of this matter and comes up this information. We have one of the best Chartered Accountants in India who provides all tax related solutions. They can advise you in tax issues and in starting a new company as well.