Outlook Business Desk
People holding assets or investments outside India may face greater scrutiny going forward. The government has strengthened its international tax information-sharing system, making it easier for authorities to obtain financial details from foreign jurisdictions.
The latest changes do not create any new tax liability. Instead, they focus on improving how information is exchanged and monitored, giving tax authorities stronger tools to investigate potential cases involving overseas assets and income.
A key change is the push for quicker responses between countries. When requested information is already available, authorities will now be expected to share it within a shorter time frame than before.
Under the revised framework, inbound requests can be answered within 15 days where records are readily accessible. The move is expected to reduce delays that often slow down cross-border tax investigations.
If information cannot be provided immediately, authorities will no longer remain silent until completion. The framework now requires status updates, allowing requests to be tracked more closely while the process is underway.
The system also introduces dedicated officers and better monitoring of requests sent abroad. Experts believe this could improve coordination with foreign jurisdictions and ensure treaty-related information is followed up more efficiently.
According to experts, the strengthened framework could help investigators look deeper into complex ownership arrangements, including offshore companies, trusts and structures designed to hold assets across multiple jurisdictions.
According to Rahul Charkha, Partner at Economic Laws Practice, the framework reflects evolving global reporting standards, including those covering crypto assets, signalling a broader shift towards technology-driven tax enforcement.
Experts cautioned that foreign bank accounts, overseas securities, Employee Stock Ownership Plans (ESOPs), retirement accounts, trusts and crypto holdings may now be matched more effectively against tax disclosures, increasing the chances of inconsistencies being detected.