This decision by Switzerland comes as a great relief for Narendra Modi government who has vowed to bring back all the black money stashed outside India.
Widely perceived as one of the safest havens for black money, Switzerland has ratified automatic exchange of financial account information with India on Friday, according to a media report.
After September 2019, India would be able to get the financial details of accounts held by Indians in Switzerland on an automatic basis, an Economic Times report says.
Authorities of India and Switzerland were in talks with each other for a long time for the introduction of the Automatic Exchange of Information (AEOI). The proposal to introduce AEOI with India "met with widespread approval from the interested parties who voiced their opinions in the consultations," reported the newspaper.
Switzerland has already introduced the AEOI with at least 38 countries and territories, including 28 members of the European Union. It will start sharing the data with them in 2018.
This decision by Switzerland comes as a great relief for Narendra Modi-led government who has vowed to bring back all the black money stashed outside India.
The central government has taken multiple steps to tackle the menace of black money which includes the much debated demonetisation of high-value currency initiated in November 2016. The government has also introduced he 'Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015', specifically to fight the menace.As a result of voluntary declarations by citizens, Rs 4,164 crore worth of undisclosed foreign assets saw the light of day. The government collected Rs 2,476 crore by way of penalty and taxes on these declarations.