CURRENT AFFAIRS

Detailed explanation-1: -The purpose of Tax Information Exchange Agreements (TIEA) is to promote international co-operation in tax matters through exchange of information. It was developed by the OECD (Organisation for Economic Co-operation and Development) Global Forum Working Group on Effective Exchange of Information.

Detailed explanation-2: -Exchange of Information on Request (EOIR) India may make a specific request to another country or jurisdiction under the relevant tax treaty for sharing of information for the purposes of implementation of the treaty or for administration or enforcement of domestic tax laws.

Detailed explanation-3: -James Wilson, the first Finance Minister of the British Indian Government introduced the tax system in India. In 1860, income tax was introduced by James Wilson in India.

Detailed explanation-4: -Inter Government A between India and US under FATCA The IGA between India and USA was signed on 9 July, 2015.It provides that the Indian FIs will provide necessary information to the Indian tax authorities, which will then be transmitted to USA periodically.