India will now automatically receive information on Swiss bank accounts of its citizens from September 2019.
Switzerland has conformed to the global standards on automatic exchange of information with the signing of the declaration, India, on its part, has promised to safeguard the confidentiality of the data.
The Swiss Federal Department of Finance said in a statement that the signing of the joint declaration with India confirms Switzerland’s international commitment to implementing the automatic exchange of Information (AEOI) standard.
“Switzerland is thus strengthening its network of AEOI partner states.
Describing the signing of declaration as a ‘big step’, Revenue Secretary Hasmukh Adhia tweeted: “The income tax department will be able to obtain information from accounts of all Indians stashed in Switzerland from 2018 onwards.”
The use of Swiss bank account by Indian politicians and business tycoons has been a major issue in Indian politics. A huge global pressure has resulted in Switzerland relenting on the tough secrecy clauses its local laws gave to the banks. Several information requests on details about Indians who had accounts in Swiss banks are still pending.