India and Australia on Friday signed the revised Double Taxation Avoidance Agreement (DTAA) to facilitate exchange of information on banking and tax-related matters.

"The Exchange of Information Article is updated to internationally accepted standards for effective exchange of information on tax matters, including bank information, and also for exchange of information without domestic tax interest," the Finance Ministry said in a statement.

The protocol amending the DTAA was signed here by Minister of State for Finance S S Palanimanickam and Australia's Minister for Employment and Workplace Relations & Financial Services and Superannuation Bill Shorten. 

The protocol was finalized in February, 2011. 

It also provides that the information received from Australia in respect of a resident of India can be shared with other law enforcement agencies with authorization of the competent authority of Australia and vice-versa. 

This will facilitate higher degree of mutual cooperation between two countries.

The protocol provides that India and Australia shall lend assistance to each other in the collection of revenue claims. 

According to it, the assets or money kept in one country can be recovered by the other country for the purposes of recovery of taxes by following certain conditions and procedure.

In the existing treaty, the concept of non-discrimination was not present. As per the protocol signed today, nationals of one country shall not be discriminated against the nationals of the other country in the same circumstances in line with international practices.

Besides, a threshold limit to avail the exemption for service, exploration and equipment permanent establishments and taxation thereof have been rationalized to encourage cross border movement of capital and services between the two countries.