1．Reinforcement of Exchange of Information
The Protocol provides for the effective exchange of information in terms of tax matters between the tax authorities in accordance with latest international standards. After this revision, the tax authorities of the two countries will be able to exchange information effectively based on the latest international standards.
2. Introducing Assistance in the Collection of Taxes
The Protocol introduces new provisions which allow the tax authorities of the two countries to lend assistance to each other in the collection of revenue claims.
3. Adding financial institutions exempted from tax on interest
The Nippon Export and Investment Insurance (hereinafter referred to as “NEXI”), General Insurance Corporation of India and New India Assurance Company Limited are added as those which are qualified for exemption from tax on interest at source.
In consequence, interest arising in India and derived by the NEXI or by a resident of Japan with respect to debt-claims insured by the NEXI will be exempted from tax on interest in India on and after 1st April of the calendar year next following that in which the Protocol enters into force.