India and Singapore signed a protocol today amending the exchange of information provision in their double tax avoidance agreement (DTAA). The protocol is based on the new OECD model provisions on exchange of information in tax treaties.
It requires exchange of information on request in all tax matters and doesn't allow information to be withheld solely because it is held by a bank, financial institution or person acting in a fiduciary capacity. While the information received has to be treated as secret in the same manner as information obtained under the domestic law of the receiving country, it can be disclosed to authorities and courts concerned with tax enforcement. The protocol will not enter into force until it is ratified by both countries.