Furnishing of information to treaty partner countries under DTAA. - Income Tax - 1918/1994

INSTRUCTION NO. 1918/1994 Dated: June 30, 1994 With a view to furnishing information on a routine basis to the treaty partner countries under the Article on 'Exchange of Information' in our Double Taxation Avoidance Agreements, it was decided in 1991 by the Board to collect information in a prescribed proforma. Instruction No. 1879 dated 30-1-91 was issued to all CCITs/DGITs to furnish information concerning transactions of more than rupees one lakh, pertaining to recipient of treaty partner country based on the return of income or transactions noticed during the assessment proceedings, on half-yearly basis. 2. The board had occasion to review the above instruction and it has been decided that the limit of rupees one lakh for the transactions to be reported to the Board be raised to rupees ten lakhs. 3. In addition to the information to be furnished in the specified proforma, it has also been decided to supply information, suo motu, in cases where tax evasion is suspected in the treaty partner country, under the above referred Article of our tax treaties. Therefore, a self contained brief of transactions on case to case basis may also be sent to the Board where there is reason to suspect tax evasion in the treaty partner country. 4. The reports for the periods ending 30th June and 30th December are expected to reach the Board by the end of the following months respectively. The first such report will relate to the half year ending 30th June, 1994 5. The contents of this letter may please be brought to the notice of all the officers in your charge.