India recasts rules for foreign tax info exchange: New framework from July 1 aims to curb cross-border tax evasion & speed up case closure

India has revamped its framework for exchanging tax information with foreign authorities, sharply tightening timelines and monitoring mechanisms to curb cross-border tax evasion and speedy closure of cases involving foreign tax jurisdictions.

The new framework, effective July 1, mandates all requests from foreign tax jurisdictions to be treated as "high priority" and lays out that information be shared within 15 days from the date of request, if information is available with the income tax department.

If full information cannot be provided on time, officers must submit an interim report within 15 days, detailing progress, constraints, and with an expected timeline for completion.


As per the framework all outbound requests made to foreign tax jurisdictions will also face closer scrutiny and all pending requests will be tracked through monthly reports for timely follow-up action by authorities.

The overhaul is aimed to improve the speed, consistency, and the quality of cross-border tax intelligence and reduce repeated clarifications from foreign authorities.

This will also tighten internal accountability on outbound requests and will help the Income tax department close cases involving foreign tax jurisdictions that often face delays due to lack of timely follow ups.

This is part of a larger preparation for data sharing as India will start sharing details of crypto and other digital assets from April 1, 2027, officials said.

"The changes are aimed to make India a more responsive and reliable partner in international tax cooperation, and at the same time improve the quality of data sharing," a senior tax official told ET.

The move aligns India with Organisation for Economic Co-operation and Development-led (OECD) Crypto-Asset Reporting Framework (CARF), a global standard that requires countries to automatically exchange information on crypto transactions between tax authorities, similar to existing frameworks for bank accounts.

The focus will also be on improving compliance quality and reducing procedural gaps in treaty-based information sharing.

The Directorate General (Investigation) will designate nodal officers to ensure coordination and follow-up.