Press Information Bureau

Government of India

Ministry of Finance

27-March-2012 18:23 IST

Income Tax Department receives information from various sources including from foreign governments under the Double Taxation Avoidance Agreement (DTAA). Whenever such information is received, it is investigated and any untaxed amount is assessed and brought to taxation. Prosecution proceedings for concealment are initiated in appropriate cases.

The information received is covered by the confidentiality clause under the DTAAs and can only be used for the tax purposes specified therein. Thus, the contents of the information received under DTAA cannot be disclosed to persons other than those involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement.

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

DSM/SS/SL

Double Taxation Avoidance Agreement information may trigger tax assessment and prosecution while remaining confidential for tax purposes only. Information received under the Double Taxation Avoidance Agreement is investigated and any untaxed amount is assessed and brought to taxation, with prosecution for concealment initiated in appropriate cases; such information is confidential and may be used only for assessment, collection, enforcement or prosecution and determination of appeals in relation to the taxes covered by the Agreement.