Upon entry into force, the Amending Protocol between India and Switzerland will amend, inter-alia, the article concerning Exchange of Information in the existing Double Taxation Avoidance Agreement (DTAA) between the two countries to specifically provide for exchange of banking information as well as information without domestic interest. The Amending Protocol contains a provision that the requesting state has to provide the name of the person(s) under examination or investigation and, if available, other particulars facilitating that person’s identification such as address, date of birth, marital status, tax identification number. Similarly, it provides that the requesting state also has to provide the name and, if available, address of any person believed to be in possession of the requested information. The Amending Protocol also provides that these clauses contain important procedural requirements that are intended to ensure that fishing expeditions do not occur, nevertheless they need to be interpreted in order not to frustrate effective exchange of information. Thus, upon entry into force, the Amended DTAA will enable India to get banking information in specific cases for a period beginning 1st April, 2011 and thereafter.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question raised in Rajya Sabha today.

Exchange of banking information expanded under amended DTAA, with identification safeguards to prevent fishing expeditions. The DTAA amendment permits exchange of banking information and information without domestic tax interest, enabling India to request banking records in specified cases. The requesting state must supply the target individual's name and, where available, identifying particulars and the name and address of any person believed to possess the information; these procedural safeguards aim to prevent fishing expeditions while preserving effective information exchange.