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    Feb 11, 2011

    INDIA AND BRITISH VIRGIN ISLANDS SIGN TIEA

    No.402/92/2006-MC (03 of 2011) 
    Government of India / Ministry of Finance 
    Department of Revenue 
    Central Board of Direct Taxes 
    ***
    New Delhi dated the 10
    th
     February 2011 
    PRESS RELEASE 
    India has entered into its third Tax Information Exchange Agreement (TIEA) with the 
    British Virgin Islands. The Agreement was signed on 9
    th
     February 2011
    by the High
    Commissioner of India to United Kingdom on behalf of India and the Deputy Premier on behalf 
    of British Virgin Islands. The agreement provides for sharing information, including exchange 
    of banking and ownership information, and also of past information in criminal tax matters. 
    Earlier, India had signed similar TIEAs with Isle of Man and Bermuda.  
    In order to further reduce litigation, the Central  Board of Direct Taxes (CBDT) has 
    enhanced the limits for filing appeals against taxpayers in the Income Tax Appellate Tribunal, 
    High Court and Supreme Court, from tax effect of Rs.2 lakh, Rs.4 lakh and Rs.10 lakh, 
    respectively, to Rs.3 lakh, Rs.10 lakh and Rs.25 lakh, respectively.  
    In order to speed up refunds, TDS claims in all tax returns (ITR-1 to ITR-6) will be 
    accepted without verification if the difference between the amount claimed in the return and the 
    amount reflected in the TDS return (AS-26 statement) does not exceed one lakh rupees. This 
    will enable the Income Tax department clear nearly 95 percent refunds without verifying each 
    TDS claim. Cases with zero-matching, invalid TAN and difference exceeding Rs. 1 lakh will, 
    however, be cleared only after due verification. This precaution is necessary to avoid refund 
    frauds. 
    Earlier, the Chairman CBDT had directed all Chief Commissioners to upload necessary 
    data so that the refunds can be issued expeditiously. It will be for the first time that most income 
    tax refunds of the current assessment year will be dispatched to the taxpayers within the current 
    financial year itself.

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