New Delhi: On its course to black money trail, the Central government seems to have tightened its belt to bring back money deposited in Swiss bank. The government is also mulling over to amend India-Mauritius double taxation avoidance agreement (DTAA) so as to collect tax on the earnings made in India.

According to the sources, talks between both the countries are in advance stage. An agreement has been signed between India and Switzerland to facilitate exchange of banking information related to black money. Such an agreement with Switzerland would allow India to form the first firm estimate of the amount of money its citizens have illegally deposited in individual accounts there.

READ MORE: NO EXACT FIGURE OF BLACK MONEY: CENTRE

With the nod from the Switzerland government awaited for the new double taxation avoidance agreement (DTAA), it is likely to get approval in the beginning of 2012. Thereafter, India will be allowed to seek information from Swiss banks.

However, the DTAA is related to the exchange of information and does not guarantee bringing back ill-gotten wealth from the Swiss banks, said the sources.

“The Swiss government will only provide Indian dispensation with details if they can prove an individual account is linked to illegal activity back home,” they said.

On the issue of Mauritius, the government has hinted for constituting joint committee for negotiations with the Mauritius government to amend India-Mauritius double taxation avoidance agreement.

It may be recalled that Foreign Minister SM Krishna, on his Mauritius visit last month, had held serious talks in this regard. Also, delegations of both the nations have exchanged information last week. According to the sources, the joint panel can begin its function from next month, but it may take a year to get the report and implement the new agreement.

JPN/Bureau