“The agreement will stimulate effective
exchange of information between the two countries which will help curb
tax evasion and tax avoidance,” a cabinet communique said.
At the G20 nations summit in Australia
in November last year, the leaders endorsed a new global transparency
standard by which more than 90 jurisdictions would begin automatic
exchange of tax information, using a common reporting standard by
2017-18.
The deal will not only allow the
countries to extract bank details for future, but they could also avail
account balance information of the past five to six years upon request.
