Income Tax Department now can exchange information from nine countries

Income tax department non can exchange information for prevent the evasion from nine more countries with the amendment of income tax act. The Central Government has approved notification of 'specified territory' for the purpose of Explanation 2 to Section 90 of the Income Tax Act 1961. Section 90 of the Income Tax Act was amended by the Finance Act 2009 to enable the Central Government to enter into an agreement with any specified territory outside India, in addition to the already existing provision of agreement with the government of any country. Explanation 2 provides for notification of such specified territories. Full notification is as under

No.402/92/2006-MC (15 of 2010)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated 13th April 2010
PRESS RELEASE
The Central Government have approved notification of the following areas as
‘specified territory’ for the purpose of Explanation 2 to Section 90 of the Income Tax
Act 1961 – (i) Bermuda, (ii) British Virgin Islands, (iii) Cayman Islands, (iv)
Gibraltar, (all British Overseas Territories); (v) Guernsey, (vi) Isle of Man, (vii)
Jersey, (all British Crown Dependencies); (viii) Netherlands Antilles (an Autonomous
Part of the Kingdom of Netherlands); and (ix) Macau (a Special Administrative
Region of the People’s Republic of China).
Section 90 of the Income Tax Act was amended by the Finance Act 2009 to
enable the Central Government to enter into an agreement with any specified territory
outside India, in addition to the already existing provision of agreement with the
government of any country. Explanation 2 provides for notification of such specified
territories. Now the Central Government can initiate and negotiate agreements for
exchange of information for the prevention of evasion or avoidance of income tax and
assistance in collection of income tax with these nine specified territories.
The notification of Hong Kong, a Special Administrative Region of the
People’s Republic of China, as a specified territory for the purpose of Section 90 of
the Income Tax Act 1961 is also under process.
[Notification No. 22 of 2010; F.No.142 / 5 / 2010-SO (TPL)]
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