In another step to curb black money in India, Switzerland, on Friday, ratified automatic exchange of financial account information with India. This move will allow Indian financial authorities to access transactions by Indians with Swiss banks from 2019.
Swiss banks have been used by Indians looking to stash black money away from the scrutiny of authorities. The introduction of Automatic Exchange of Information (AEOI) on tax matters will allow financial authorities around the world to accurately estimate the amount of illicit wealth stored in Swiss banks.
The government has been actively trying to reduce black money in the country, implementing policy-level initiatives while also offering a three month compliance period for declaration of undisclosed financial assets. 648 declarations were made, totalling to Rs 4,164 crore of undisclosed foreign assets and Rs 2,476 crore was collected through tax and penalties.