India is engaged in “positive talks” with Mauritius on revision of bilateral tax treaty. The government is in the process of revising the Double Taxation Avoidance Agreement (DTAA) with Mauritius. Tax treaty amendments, hanging in balance for many years, are aimed at addressing India’s concerns over the island nation being allegedly used to route illicit funds into the country. With regard to FATCA, the tax authorities have received some information from the US and is being processed. The Foreign Account Tax Compliance Act (FATCA) came into effect from September 30.

The Inter-Governmental Agreement (IGA) between India and US, signed as part of FATCA implementation, requires the Indian Financial Institutions to provide necessary information to Indian tax authorities, which will then be transmitted to the US automatically. On Tax Information Exchange Agreement (TIEA), there are discussion going on with more than 20 more countries. India has TIEA with over 100 countries.

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