INCOME TAX

Exchange of information under DTAAs signed u/s 90

INSTRUCTION NO. 1879/1991

 Dated: January 30, 1991

Under section 90 of the Income-tax Act, 1961, the Central Government has entered into Double Taxation Avoidance Agreements with various countries. At present, India has concluded 36 comprehensive agreements have been entered into is given in Annexe-I. All these agreements have been notified in the Official Gazette.

2. The comprehensive agreements contain an article on 'Exchange of information". This article generally provides for exchange of information for carrying out not only the provisions of the agreement, but also of the domestic laws of the contracting States. Useful information under this article is being received from various countries. It has, therefore, been decided that we should also furnish information available with us to the treaty partner countries under this article on a regular basis.

3. To begin with, information concerning transactions of more than rupees one lakh, pertaining to a recipient of treaty partner country may be collected from company charges in the enclosed proforma (ANNEXE II). The basis of such information may be the return of Income or the transaction noticed during the assessment proceedings Consolidated report in this regard may be sent to the Foreign Tax Division of the Board on a half-yearly basis. The report for the periods ending 30th June and 30th December should reach the Board by the end of the following month respectively. The first such report will relate to the half-year ending 30th June, 1991.

4. This may be brought to the notice of all the officers in your region.