Black money: Govt resuming talks with Switzerland

Government is renegotiating the tax treaty with Switzerland to unearth unaccounted money parked outside India.

Addressing Parliament on the first day of Budget session, President Pratibha Patil said steps have already been initiated for negotiations to enter into agreements for the exchange of information with major jurisdictions.

"My government has undertaken a number of steps to unearth unaccounted money parked outside India. These include amendment of the Income-tax Act, 1961 to enable the central government to enter into tax agreements with non-sovereign jurisdictions," she said.

"Renegotiation of the Tax Treaty with Switzerland is in process. India is an active part of the global efforts to facilitate exchange of tax information, and to take action against tax evasion", Patil said.

Various political parties and groups have been claiming that the black money stashed away in Swiss banks by Indians exceed one trillion dollars, a claim refuted by Swiss bankers who say no such statistics exist.

Renegotiation of the Double Taxation Avoidance Agreement treaty, which was signed in 1995, would enable India seek details of specific cases where tax evaders money was lying in Swiss banks.