Tax dept removes 'restraint' on sharing of info with agencies

The tax department has removed restraint on sharing of information by its officers regarding taxes and foreign exchange with other authorities or agencies, with a view to effectively track black money.
The Department of Revenue has tweaked Section 138 of the Income Tax Act, which deals with mechanisms for disclosure of information of assessees by taxmen to other authorities, with retrospective effect from May 23, 2003.
The partial amendment to Section 138 "removes the restraint" with regard to sharing of information, the Department of Revenue notification said. The 2003 notification prohibited sharing of information with any person or authority with certain exceptions.

Nangia & Co Managing Partner Rakesh Nangia said the clarification shall prove to be timely and useful.
"Under the post demonetisation scenario a free flow of inter-departmental information shall empower the tax authorities in terms of information required to take requisite actions against the tax evaders. This shall ensure effective implementation of the government's agenda of cleaning India from the perils of black money," Nangia said.
The amendment to Section 138 dilutes the provisions that restricted sharing of tax information about assessee with other agencies or authorities.

The amendment brings about clarity regarding sharing of information pertaining to tax, duty, cess, foreign exchange with other agencies.

The information pertaining to assessee, which has been obtained in performance of function by any I-T authorities can be shared by officers of the level of commissioner of income tax and above in public interest.
The sharing of information amongst agencies assumes significance as during the 50-day demonetisation period people have deposited huge cash in their bank accounts.
As per I-T records, 18 lakh people has made suspicious deposits of over Rs 5 lakh in their bank accounts totalling to Rs 4.5 lakh crore.