A Protocol to Double Taxation Avoidance Agreement between India and Denmark that has entered into force on February 1, 2015, has been notified by Notification No. 45/2015/F No. 503/02/1998-FDI-I, to expand the scope of Exchange of Information (EOI) clause under Article 26 by substituting the same with a new Article 26.

In terms of newly substituted Article 26, the said clause has been liberalized to allow exchange of information as is foreseeably relevant for, inter alia, administration, or enforcement of domestic laws. Clauses 4 and 5 have been newly inserted to – (a) debar the contracting states from declining to supply information requested solely on the ground of “no domestic interest” in such information and makes it obligatory for the contracting states to provide information requested by other states even when the other state may not need the information for its own tax purpose and (b) prohibits contracting states from denying information solely “because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person”