Press Information Bureau

Government of India

Ministry of Finance

05-September-2012 18:25 IST

Income Tax Overseas Units

Income-tax Overseas Units (ITOUs) manned by tax officers at the level of First Secretary have been established in Mauritius and Singapore. Further, posting orders in respect of officers to be posted to newly created ITOUs in Indian missions at Cyprus, France, Germany, Japan, Netherlands, UAE, UK and USA have been issued. The relieving of these 8 officers to join their respective ITOU is pending for finalization of terms & conditions of their posting by Ministry of External Affairs.

ITOUs in Mauritius and Singapore facilitate and expedite the exchange of information process under Double Taxation Avoidance Agreements (DTAA) with these countries. However, the information received cannot be disclosed as it is governed by the confidentiality clause of the respective DTAA with these countries.

Inter-departmental consultations are going on to examine the need for setting up more such units in other countries.

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

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DSM/RS/Hb

Exchange of information under DTAA: new overseas tax units to facilitate sharing while preserving treaty confidentiality. Income tax Overseas Units (ITOUs) have been established in Mauritius and Singapore and additional ITOUs created for several other missions to facilitate and expedite exchange of information under the Double Taxation Avoidance Agreements; information received remains governed by the confidentiality clause of each DTAA. Posting orders for officers have been issued, with actual relief pending finalization of terms by the Ministry of External Affairs, and inter departmental consultations continue to examine the need for more such units.