"A proposal for signing an Inter-Governmental Agreement (IGA) with United States of America which will result in Indian financial institutions being complaint with the provisions of FATCA is under consideration," Sinha said in a written reply to a question in the Rajya Sabha.
Under the pact, financial entities will be required to report information on US account holders to the US IRS (internal revenue service) through the Central Board of Direct Taxes.
The non-compliance with FATCA would entail 30 per cent withholding tax on US source payments.
Under the pact, the exchange of information between the countries will be subject to a confidentiality clause.
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