« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  New income tax code to be tabled before December... Telcos may get tax breaks on shared infra... » Govt plans law to counter cross-border tax evasion August, 08th 2007 The government is planning to introduce strict laws to check cross-border tax evasion, often done though special transactions. Under the proposed legislation, any transaction carried out primarily to evade tax will be denied the benefits extended by the Double Taxation Avoidance Agreement (DTAA). Instead, such transactions will be governed under the domestic tax law. It will also cover the practice of registering companies in tax havens. Many developed countries, including the US and the UK, have already enacted laws to contain tax evasion through artificial transactions. In the US, tax havens have already become a major presidential election issue. The laws in these countries unambiguously support their revenue departments to deny the tax benefits to such transactions, while ensuring that genuine commercial transactions are not blocked. According to unofficial estimates, tax havens hide nearly $12 trillion, a major part of which is due to tax evasion. The tax that could have been generated on hidden funds is estimated at $250-300 billion. The finance ministry has received proposals to enact stricter laws by the committees set up for framing the new tax code and also by the international tax division of the income-tax department. The international tax division of the income-tax department has faced serious problems in its attempt to tax capital gains arising from the recent mergers and acquisitions involving Indian and foreign companies. Since some of the investments in such cases were routed through companies registered in tax havens, the department lacked the legal footing to make water-tight demands on these companies, though it had served the notices.