Section 73 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 73 lets the Central Government enter into agreements with other countries, and with specified territories outside India, to exchange information about evasion or avoidance of tax on undisclosed foreign income and to recover tax under this Act and the corresponding foreign law. It also allows the government to make provisions by notification to implement the agreements, and lets a specified association in India enter into such an agreement with a specified association abroad. Residents with assets in more than one country can take advice on the cross-border side from our FEMA advisory team.
As per the Act as enacted and published in the Gazette of India on 27 May 2015, the Central Government may enter into an agreement with the Government of any other country for (a) exchange of information to prevent evasion or avoidance of tax on undisclosed foreign income, or to investigate such cases, and (b) recovery of tax under this Act and under the corresponding law of that country. The same may be done with a specified territory outside India. The government may notify provisions needed to implement such agreements.
Sub-section (1): agreements with other countries
The marginal note reads "Agreement with foreign countries or specified territories". Sub-section (1) says the Central Government may enter into an agreement with the Government of any other country:
- (a) for exchange of information for the prevention of evasion or avoidance of tax on undisclosed foreign income chargeable under this Act or under the corresponding law in force in that country, or investigation of cases of such evasion or avoidance; and
- (b) for recovery of tax under this Act and under the corresponding law in force in that country.
Two points. The section says "may": it permits agreements and does not itself create any. The Act as enacted also does not name any country, and the sources do not contain any agreement, so this article cannot say which countries have such an agreement with India or what any agreement provides. The two purposes are separate: information and investigation in clause (a), recovery of tax in clause (b).
Sub-section (2): specified territories
The Central Government may enter into an agreement with the Government of any specified territory outside India for the purposes specified in sub-section (1). The Act uses the words "specified territory" without a separate definition in this section or, so far as the text read for this article shows, in section 2. Sub-section (5) deals with undefined terms (see below).
Sub-section (3): notification to implement
The Central Government may, by notification, make such provisions as may be necessary for implementing the agreements referred to in sub-sections (1) and (2). A notification is therefore the instrument through which the agreement takes effect inside India; the text of any such notification is not in the sources and this article does not describe one.
Sub-section (4): specified associations
Any specified association in India may enter into an agreement with any specified association in the specified territory outside India for the purposes of sub-section (1), and the Central Government may by notification make such provisions as may be necessary for adopting and implementing such an agreement. This is a different route from sub-sections (1) and (2): the parties are associations, not governments, and the government's role is to adopt and implement the agreement by notification.
The provision is addressed to associations that are "specified"; the Act as enacted does not list them.
Sub-section (5): undefined terms
Any term used but not defined in the Act or in the agreement referred to in sub-sections (1), (2) or (4) shall, unless the context otherwise requires and is not inconsistent with the provisions of the Act or the agreement, have the meaning assigned to it in the notification issued by the Central Government, and "such meaning shall be deemed to have effect from the date on which the said agreement came into force".
The last words matter. The notification's meaning is deemed to apply from the date the agreement came into force, and not only from the date of the notification. The Act as enacted does not give that date, since it depends on the agreement.
Sub-sections at a glance
| Sub-section | What it provides (as enacted) |
|---|---|
| (1) | Agreement with any other country for (a) exchange of information and investigation and (b) recovery of tax |
| (2) | Agreement with a specified territory outside India for the same purposes |
| (3) | Notification to make provisions to implement the agreements |
| (4) | Specified association in India may agree with a specified association in the territory; notification to adopt and implement |
| (5) | Undefined terms take the meaning in the notification, effective from the date the agreement came into force |
How section 73 links to recovery in section 38
Section 38 of the Act, on recovery of tax dues in pursuance of agreements with foreign countries or a specified territory, speaks of agreements under section 90 or section 90A of the Income-tax Act or under sub-sections (1), (2) or (4) of section 73 of this Act. In other words, the recovery side of section 73 is picked up by section 38, which is explained in our article on sections 33 and 37 to 39. The information side also appears in Chapter VI: clause (d)(iii) of section 71 excluded assets in respect of which information had been received under an agreement under section 90 or section 90A of the Income-tax Act; see our article on sections 71 and 72.
How it differs from treaty relief
Readers sometimes confuse this section with relief for tax paid abroad. Section 73 is about cooperation between governments: information and recovery. It is not a credit or relief provision. For the income-tax material on double taxation agreements and credit for foreign tax, see our guides on DTAA and on tax on foreign income for residents. For the foreign-exchange side of assets held abroad, see our guide on section 4 of FEMA 1999.
A worked example
Suppose India and a hypothetical country, Zenara, have an agreement of the kind described in section 73(1). An Indian resident, Farhan Siddiqui, is assessed under the Act for undisclosed foreign income and has an unpaid tax arrear. Under clause (a) the two governments could exchange information to investigate the evasion; under clause (b) the agreement could provide for recovery of the tax. Which steps are available, and on what conditions, depends entirely on the agreement and the notification made under sub-section (3), none of which is in the sources. The example is invented and describes no real agreement.
Points the text leaves open
The Act as enacted does not say how a taxpayer is told that information has been exchanged, what safeguards apply to it, or what notice a person gets before recovery abroad. It does not list the specified associations or territories. It does not say what happens if an agreement is silent on a term and no notification has been issued. This article does not answer those questions.
References and what to check
The section is read as enacted. Later Finance Act amendments to section 73, and any notification or agreement made under it, should be checked from official sources. References to the Income-tax Act are to the Income-tax Act, 1961 as printed in 2015; the corresponding provision of the current income-tax law should be checked.
Need help with foreign-asset questions across borders?
If you hold assets in more than one country and want to understand how information exchange and recovery agreements may bear on you, our FEMA advisory team can discuss the position with you and plan the next step.
Key takeaways
- Section 73 permits agreements with other countries for exchange of information and recovery of tax.
- The same may be done with a specified territory outside India, and a specified association in India may agree with its counterpart there.
- The Central Government may notify provisions to implement the agreements.
- Undefined terms take the meaning in the notification, deemed effective from the date the agreement came into force.
- No agreement or notification is in the sources, so none is described here.
- Check later Finance Act amendments before acting.
Read next
- Sections 33 and 37 to 39: Tax Recovery Officer, State Government and recovery abroad
- Sections 71 and 72: persons excluded from declaration and removal of doubts
- DTAA: double taxation avoidance agreement explained
- Section 4 of FEMA 1999: holding foreign exchange, foreign security and property outside India
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.