CBDT Directs IT Department To Start Sharing Details Of Wilful Defauters With Public Sector Banks To Aid Loan Recoveries

In a bid to tighten the noose on wilful loan defaulters, the Central Board of Direct Taxes (CBDT) on Wednesday (26 June) instructed the Income-Tax (IT) Department to share in "public interest" the details of assets and accounts of all such individuals with the public sector banks, reports Livemint.

For implementing the directive from CBDT, the IT department will be culling out the necessary information from the Income Tax Return (ITR) filed by the assesses. The CBDT also underscored that besides the statement of assets, the information such as bank account details, sundry debtors of the loan defaulter can also be made accessible to the public sector banks by the IT Department, if requested.

The sharing of information will be done under Section 138 (1) (b) of the IT Act which states that if a prescribed application is made to the jurisdictional Principal Chief Commissioner or Principal Commissioner of IT, he or she can furnish the information if they are satisfied that this sharing will public interest.

However, the CBDT also added that at the time of supply of such information, a confidentiality clause may be included specifying that the provided information would only be used for the purpose of loan recovery and would not be shared with any other person or agency.