The Union Cabinet on Wednesday approved signing and ratification of a protocol between India and Japan for amending the Double Taxation Avoidance Convention (DTAC).
The DTAC was signed between the two countries in 1989 for avoidance of double taxation and for prevention of fiscal evasion through a protocol.
The protocol will facilitate exchange of information as per accepted international standards on tax matters, including bank information and information without domestic tax interest.
There is a further provision in the protocol for sharing any information received from Japan with authorisation of the competent authority in Japan and vice versa with respect to an Indian resident with other law enforcement agencies.
The protocol also has a provision for India and Japan to lend assistance to each other in collection of revenue claims as well as for exemption of interest income from taxation in the source country with respect to debt-claims insured by the Government or Government-owned financial institutions. (ANI)