New Delhi: The information shared under the FATCA, which India signed with the US Thursday, will be treated as confidential and will be used only for tax purposes.
"All information exchanged shall be subject to the confidentiality and other protections provided for in the Convention, including the provisions limiting the use of the information exchanged," said that agreement.
The agreement was signed by Revenue Secretary Shaktikanta Das and US Ambassador to India Richard Verma here.
The text of the agreement posted on the website of the Income Tax Department said that it would be incumbent on the countries to provide "appropriate safeguards to ensure that the information received pursuant to this Agreement shall remain confidential and be used solely for tax purposes."
The agreement further specified that Indian financial institutions are not required to compulsorily report holdings of American nationals if the amount is less than USD 50,000 as on June 30. The same ceiling will also apply for a depository account.
Besides, the institutions will also be exempt from reporting cash value of insurance contract or annuity contract is less than USD 250,000 as on June 30.
The agreement has also prescribed the reporting procedure as also the details to be furnished which include names, address, account number and balance and TIN (Taxpayer Identification Number).
The two nations have agreed to consult on the progress as per the agreement and suggest any amendments by December 31, 2016.
