Sebi-CBDT info-sharing pact facing roadblock over confidentiality clause

Confidentiality clause about foreign jurisdiction prevents tax board from sharing sensitive details with market regulator

The recent information-sharing agreement between the direct taxes board and market regulator Sebi is facing a roadblock. The reason, according to officials, is the confidentiality clause in the tax agreements with other nations.

The Income Tax department has to abide by  the confidentiality clause which holds it back from sharing details obtained through tax treaties, particularly about offshore entities.

“The exchange of data has certain exceptions and limitations,’’ said a senior tax official privy to the pact.

The tax department receives a bulk of information not just from domestic sources but also from foreign jurisdictions. Some of that is very