Government notifies protocol amending tax treaty with Israel

Government notifies protocol amending tax treaty with Israel

The Revenue Department has notified the protocol amending the India-Israel tax treaty to provide for exchange of information on tax matters including bank details to check flow of black money.

The amended treaty provides that information in respect of an Indian resident received from Israel can be shared with other law enforcement agencies like the CBI and Enforcement Directorate.

It also provides for levy of capital gains tax in India on sale of shares or interest in a trust, partnership or other entity.

It also provides ‘Limitation of Benefits’ Article as an anti-abuse provision in order to enable enforcement of domestic law in case of misuse of the treaty.