New Delhi: India has signed a treaty with Bahrain for effective exchange of information on banking and other tax related matters.

The Tax Information Exchange Agreement (TIEA) "incorporates provisions for effective exchange of information including banking information between tax authorities of the two countries," the Finance Ministry said in a statement.

The agreement, signed on Thursday, will enhance mutual co-operation between the two countries by having effective exchange of information in tax matters, it added.

As per the pact, the exchange of information "shall be on request and without regard to the domestic interest".

The agreement was signed by Minister of State for Finance Namo Narain Meena and Minister for Transportation and Acting CEO of the Economic Development of Bahrain Kamal Ahmad.

The agreement is based on international standards of transparency and exchange of information.

India has been negotiating and renegotiating Double Tax Avoidance Agreements (DTAAs) with several countries and also entering in TIEAs to strengthen the exchange of information relating to tax evasion, money laundering and other criminal activities.


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