India and the United States signed a tax information sharing agreement on Thursday, under a new U.S. law meant to combat offshore tax dodging by Americans as well as Indians stashing funds abroad.

The agreement aims to close window for U.S. citizens to avoid tax by investing in financial products like equities, bank accounts and insurance.

In return, India expects to garner Washington's support to bring back illicit funds stashed by Indians in foreign tax havens and boost revenues by getting information about Indians working in the United States.