Introduction
Exchange of Information between countries has strengthened India’s fight against tax evasion. This Efiletax blog explains its status, follow-up measures, and why it matters for taxpayers and consultants.
What is Exchange of Information?
- A global mechanism for sharing tax-related data between countries
- India follows OECD and G20 standards
- Governed by Double Taxation Avoidance Agreements (DTAAs), Tax Information Exchange Agreements (TIEAs), and Multilateral Conventions
- CBDT handles these under Income-tax Act Sections 90 and 90A
Types of Information Received
India receives information mainly through:
| Instrument | Description | Example |
|---|---|---|
| EOIR (Exchange on Request) | Data shared upon specific request | Offshore bank accounts |
| AEOI (Automatic Exchange) | Annual bulk data sharing | CRS & FATCA reports |
| Spontaneous Exchange | Information shared without prior request | Sudden tax fraud alerts |
(Source: CBDT Annual Reports & OECD Transparency Reports)
Follow-Up Actions by Indian Authorities
The CBDT and field offices take these steps post Exchange of Information:
- Verify information with PAN database
- Cross-check with ITR filings
- Issue notices under Section 148 (Reassessment)
- Add to ongoing investigations or audits
- Launch penalty or prosecution proceedings if evasion is confirmed
👉 Reference: CBDT SOPs & CBDT Instruction No. 04/2022 on handling EOIR/AEOI data.
Legal Foundation
- Income-tax Act, 1961 – Sections 90, 90A, 132, 148
- Double Taxation Avoidance Agreements (DTAA) – 96 treaties
- Tax Information Exchange Agreements (TIEA) – 17 countries
- Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) – 147 jurisdictions
For official details, visit www.incometaxindia.gov.in.
India’s Recent Performance
According to CBDT’s latest update (2024):
- Over 15 lakh financial accounts received under AEOI (CRS/FATCA)
- Over 50,000 cases verified using EOIR data
- Significant undisclosed offshore income unearthed
Expert View
Efiletax Tip:
If you have offshore assets, always declare them truthfully. Non-disclosure may attract heavy penalties and criminal prosecution under the Black Money (Undisclosed Foreign Income and Assets) Act, 2015.
FAQs
✅ What is EOIR vs AEOI?
- EOIR: Specific request-based info sharing
- AEOI: Automatic annual bulk data transfer (like CRS)
✅ Can taxpayers check if they’re impacted?
No direct access — but they may receive notice under Section 148 or during assessment.
✅ How to respond if I get a notice?
Always respond within timelines. Seek advice from tax consultants or Efiletax experts.
Closing
Stay compliant and stress-free. Efiletax can help you handle notices or queries related to Exchange of Information. Contact Us today for expert guidance and smooth filing.
Summary
India’s Exchange of Information framework boosts tax transparency by sharing offshore income data globally. CBDT verifies, investigates, and acts on this data under strict legal rules. Learn how it works and stay compliant with Efiletax support.