Addressing the sixth meeting of the Group on Automatic Exchange of Information (AEOI), he said the CBDT has constituted a 'Information Security Committee' to ensure confidentiality of data received from foreign countries.

"Non-disclosure of foreign assets will increasingly become a very risky affair for tax payers... Strict bank secrecy has ended, and a new environment of transparency is now operational," Sinha said.

He cited steps are being taken to put in place a robust information security mechanism in the Income Tax department by constituting the Committee at the level of CBDT and local information security commission at cadre control and through issuance of guidelines.

The Tax Department will come up with a revised guidance note of AEOI before December 31, 2015. It will provide guidance to financial institutions, regulators and tax department officers for ensuring compliance as per AEOI norms.

"The Income Tax rules and guidance notes are formulated taking into consideration requirements of both Common Reporting Standards and Foreign Account Tax Compliance Act (FATCA)," the Union Minister said.

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