Saturday, May 31, 2014

Details of assets reported in wealth-tax returns by loan defaulter to be shared by I-T Dept. with PSU Banks

Every Return of Wealth filed by the assessee is subject to assessment under the Wealth Tax Act (‘the WT Act’). The information contained therein qualifies for being supplied, provided that the CCWT/CWT is satisfied that supply of such information to Public Sector Banks (PSBs) would be in public interest.

The CBDT in this context has clarified that sharing of information on assets of loan defaulters to enable recovery of loans by PSBs from such defaulters would be in public interest. It has further clarified that such information may be provided in respect of the borrower/mortgager/guarantor of the loan only.

At the time of supply of such information a confidentiality clause may be included specifying that such information should be used only for the purpose of recovery of loan and will not be shared with any other person/agency.

To ensure that the tax dues of the Department against the defaulter (if any) are safeguarded, the PSBs are required to obtain a NOC from the jurisdictional CIT of the loan defaulter, information in respect of whom is shared by department. These guidelines are to be brought to the notice of all DGsIT, CCsIT and CsIT. – Letter No. F. No. 328/10/2014 – WT, dated 28-05-2014.