Govt okays pact with Seychelles to curb black money

The Union Cabinet, led by Prime Minister Narendra Modi, on Thursday approved the signing and ratification of an agreement between India and Seychelles for exchange of information on taxes, a move which will provide valuable information to the authorities on black money and undeclared assets stashed abroad.

The agreement will stimulate information exchange between India and Seychelles for tax purposes, which will help curb tax evasion and avoidance, Communications and Information Technology Minister Ravi Shankar Prasad said after the Cabinet meeting on Thursday.

"This is part of the ongoing initiative of the government of India to unearth black money," he said. In this regard, he said the government had taken various initiatives, including signing of FATCA (Foreign Account Tax Compliance Act) with the USA and enactment of black money law.