India, Bahrain to sign pact on tax info

New Delhi: Amidst its efforts to track blackmoney stashed abroad, India is expected to sign an agreement with Bahrain Thursday on exchange of information on taxes. The agreement, along with two other pacts, is expected to be signed during the visit of Bahrain`s Crown Prince Salman bin Hamad Al Khalifa here.

Al Khalifa, accompanied by a large business delegation, will hold talks with Vice President Hamid Ansari during which the two sides will discuss ways to promote bilateral trade and investment. The Deputy Supreme Commander of the Armed Forces of Bahrain will also meet President Pratibha Patil, Prime Minister Manmohan Singh and External Affairs Minister S M Krishna.

Sources said the two countries are expected to sign an agreement on exchange of information on taxes, which assumes significance considering Indian government`s efforts to track blackmoney stashed abroad. An agreement in the field of IT and another in the field of culture are also expected to be signed. This is the second visit of the Crown Prince to India, the last one was in March 2007.

India and Bahrain enjoy historically close and friendly relations with the presence of nearly 350,000 Indian nationals out of a total of 1.2 million residents in Bahrain being an important aspect of bilateral relations. Trade and investment cooperation is expanding and the volume of commerce was USD 1.5 billion during 2010-11.