The black money in Swiss banks is the big issue in India because of many Indian politicians is involved in it. The recent hunger strike of Mr. Anna Hazare is also based on the corruption of the politician which opens the eyes of the general public. The government of India was in great pressure on the issue of black money as many of the ministers of UPA government are in the behind of bars because of corruption.
India and Switzerland has signed Double tax avoidance agreement on August 30,2011 after which it needs to present in the parliament of both the countries to make it law. Section 26 of income tax act defines the tax information data gathering from other countries to nab tax evaders.
The new rule will empower Central board of direct taxes (CBDT) to gather data with information and accounts regarding and examine the data. CBDT will have the power to get the accounts details of last 5 years which will be very beneficial for the country to nab black money.
What is Swiss bank funda: - In Swiss bank, the accounts holder need to pay charges to deposit there money, in regard there was no way to get the information of their account. So it was easy for the corrupt politician as well as black money holder to deposit the money in Swiss bank as income tax department cannot trace this money. The new rule will really become very hard for the black money holders.