On October 29 an update to India and Japan’s double tax agreement entered into force. Further, the agreement has been modified to add internationally accepted standards for the exchange of information in tax matters. It provides that information received from Japan in respect of a resident of India can be shared with other law enforcement agencies with authorization from the Competent Authority of Japan and vice versa.
The Protocol also inserts a new Article on assistance in the collection of taxes. Most recent, the Protocol will exempt from tax income from interest in the source country with respect to debt-claims insured by the Government/Government-owned financial institutions.
