India to amend double taxation avoidance pact with Japan

The union cabinet on Wednesday approved signing an agreement for amending the double taxation avoidance convention with Japan that was first signed in 1989 to check fiscal evasion, an official statement said.

"The protocol will facilitate information exchange on tax payments, including bank transactions and on those without domestic tax interest," the statement said after the cabinet meeting chaired by Prime Minister Narendra Modi.

A provision has also been made in the protocol for sharing information from Japan on Indians with other law enforcement agencies.

"The protocol facilitates both the countries to assist each other in revenue collection and exempting interest income from taxes in the source country on debt-claims insured by the government or state-run financial institutions," the statement added.