India likely to sign US tax compliance law FATCA today

India Signing FATCA Agreement

India Signing FATCA Agreement

India is likely to sign the inter- governmental pact for the US tax compliance law FATCA on Thursday, a move that will help it fight tax evasion.

Foreign Account Tax Compliance Act (FATCA) is aimed at combating possible tax evasion by Americans through financial entities of other countries.

The pact is likely to be signed by Revenue Secretary Shaktikanta Das and US Ambassador Richard Verma on July 9 here, sources said.

Under FATCA, US government has Inter-governmental Agreement (IGA) for sharing of information with various countries where American individuals and companies have accounts and other assets.

As per the FAQ released by the Finance Ministry on the new black money law, India is expected to start receiving information through Automatic Exchange of Information (AEOI) route under FATCA from USA later in the year.

FATCA compliance will cover all new accounts opened by Indian Financial Institutions from July 1, 2014 onwards.

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