Finance minister Pranab Mukherjee on Tuesday said that amendments to double tax avoidance agreements (DTAAs) and tax information exchange agreements (TIEAs) with various countries including tax havens would help India tackle black money effectively.
“The income tax (I-T) department is engaged in tackling the black money issue,” the finance minister said on the sidelines of the all-India conference of chief commissioners and directors general of I-T.
The government has amended the DTAA by introducing a clause on seeking information regarding banking transactions abroad, especially in tax havens.
“DTAA and TIEA are two important instruments, which would help the I-T department in tackling black money and track the source of money stashed in banks abroad,” he said.
“Setting up of the Directorate of Criminal Investigation in the I-T department has been approved to deal with tax crimes related to illegal activities and tracing the black money trail.”
The finance minister also said that the Direct Taxes Code (DTC) bill is under examination of the Parliamentary Standing Committee and would be effective from April 1, 2012.