'Swiss treaty won't allow India to glean data on older accounts'

Although the Swiss Parliament has ratified a treaty allowing Indian authorities to get information on illegal funds stashed in Swiss banks, the government can't glean much data as the pact is applicable with prospective effect, a top tax official said here today.

"As far as I can remember, it is prospective. I think it is prospective date, from the date the treaty comes into effect," Central Board of Direct Taxes Chairman Prakash Chandra told reporters here when asked about the prospects of getting data from the Swiss banks.

This would mean that accounts opened in the secretive Swiss Banks before the ratification of the treaty would not be liable to scrutiny by Indian authorities.

Finance Minister Pranab Mukherjee and Swiss Federal Councillor Micheline Calmy-Rey had in August last year signed a protocol to amend the double taxation agreement (DTA) in the area of taxes, which was ratified by the Swiss Parliament's upper house on June 17.

Chandra said that although the Swiss Parliament has ratified the treaty, under the Swiss law around 90-100 days are required to make the law take effect.

Once the treaty takes effect, "The understanding is that yes, if we ask specific information with regard to a tax payer giving details as asked for, then they are willing to part with that (information) which earlier was not the case," Chandra said.