CURRENT AFFAIRS

Detailed explanation-1: -(d) the Swiss Confederation and the Republic of India notifying the Co-ordinating Body Secretariat that they intend to exchange information on an automatic basis with each other based on the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information. 2.

Detailed explanation-2: -The annual exercise of AEOI exchange, such as the current Swiss bonanza of banking details, is strictly meant for “tax only” purposes and in India, kept in the custody of and for action by the Central Board of Direct Taxes (CBDT).

Detailed explanation-3: -The IGA between India and USA was signed on 9th July, 2015. It provides that the Indian FIs will provide necessary information to the Indian tax authorities, which will be transmitted to USA periodically. Under the IGA, USA will also provide certain information about Indians having financial assets in the USA.

Detailed explanation-4: -What is the Automatic Exchange of Information (AEOI)? AEOI is the exchange of financial account information between Tax Authorities in relevant countries. The law requires this information to be collected by Financial Institutions around the world for reporting to Tax Authorities.

Detailed explanation-5: -The Common Reporting Standard (CRS) is an internationally agreed standard for the automatic exchange of information (AEOI) on financial accounts. Its goal is to increase the fiscal transparency of cross-border wealth management and combat offshore tax evasion.