The Government says, investigation is on over the information provided by the French government on certain bank accounts reportedly held by certain individuals and non-individuals in a foreign bank. In a statement, the Finance Ministry said that appropriate action has been taken in these cases and further action including assessment, tax collection and levy of penalty will be taken as per the provisions of the Income Tax Act and based on the facts of each case. It said that more information on the reported account holders is being obtained from foreign tax authorities.

It said , the information received in June, 2011 from the French Government has been analysed and investigations into the information have been undertaken by the different authorities under the Income Tax Act 1961. It also added that the information received from France is covered by the confidentiality clause under the Double Taxation Avoidance Convention between India and France and can be used only for the tax purposes. The statement also said that reference to this matter was made by the then Finance Minister during the course of the debate on adjournment motion in the Lok Sabha in December last year. Subsequently, answers to question on this matter were furnished in the Rajya Sabha on 23rd of August this year.