Govt renegotiating treaty with Switzerland to track black money

The government is renegotiating its tax treaty with Switzerland to track unaccounted money stashed outside India, President Pratiba Patil said while addressing Parliament on the first day of Budget session.

The government is renegotiating its tax treaty with Switzerland to track unaccounted money stashed outside India, President Pratiba Patil said while addressing Parliament on the first day of Budget session.

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"My government has undertaken a number of steps to unearth unaccounted money parked outside India. These include amendment of the Income-tax Act, 1961 to enable the Central Government to enter into tax agreements with non-sovereign jurisdictions," she said.

"Renegotiation of the Tax Treaty with Switzerland is in process. India is an active part of the global efforts to facilitate exchange of tax information, and to take action against tax evasion," Patil said.

Various political parties and groups have been claiming that black money stashed away in Swiss banks by Indians exceed one trillion dollars, a claim refuted by Swiss bankers who say no such statistics exist.

Renegotiation of the Double Taxation Avoidance Agreement treaty, which was signed in 1995, would enable India seek details of specific cases where tax evaders money was lying in Swiss banks.