CBDT permits sharing of information by I-T authorities with scheduled commercial banks

The Central Board of Direct Taxes has permitted sharing of information by income tax authorities with scheduled commercial banks.

“In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of Section 138 of the Income-tax Act, 1961, the Central Government hereby specifies “Scheduled Commercial Banks” listed in the Second Schedule of the Reserve Bank of India Act, 1934 for the purposes of the said clause,” the Board said in a notification dated August 31.

Recently, similar notifications and memoranda of understanding have been issued for exchange of information between income tax authorities and Securities & Exchange Board of India, Central Board of Indirect Taxes and Customs, Ministry of Micro, Small and Medium Enterprises, Narcotics Control Bureau, Intelligence Bureau, National Investigation Agency, Cabinet Secretariat, Ministry of Agriculture, among others, Section 138 of Income Tax Act.

The larger aim with information sharing is to counter tax evasion and widen the tax base in the country.

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