Banks in Switzerland have officially came out of banking secrecy regimes. Now, they have to give bank account information about Indian residents automatically to India.
A joint declaration between India and Switzerland was signed to facilitate tax information exchange automatically. The Joint declaration was signed by Sushil Chandra, Chairman, Central Board of Direct Taxes, and Gilles Roduit, Deputy Chief of Mission of Swiss Embassy in India signed on behalf of Switzerland.
As part of the G20 formulated Automatic Exchange of Information (AEOI), India and Switzerland have signed a joint declaration on automatic exchange of information. The agreement and the declaration signed by the two countries are remarkable as it will help India to track black money held in Swiss banks.
With the signing of the declaration, it is possible for India to receive information about accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.
The information will be transferred from September 2019 onwards.
Switzerland was a slow implementer of the AEOI with the Global Forum that coordinates the implementation of AEOI issuing frequent reminders to the European country.