CBDT directs I-T department to share assets, accounts info of loan defaulters with banks

New Delhi: The CBDT has directed the Income-Tax Department to share in "public interest" details of assets and accounts of all such loan defaulters against whom a public sector bank has made a plea to it.

The policy move is aimed to tighten the noose on such entities and extract recovery of public money.

The tax department, as per the latest CBDT order, will cull out this information from the Income Tax Return (ITR) of an assessee.

Central Board of Direct Taxes, that frames a policy for the I-T department, has issued an order in this context to all its field offices on Wednesday.

It said the order has been issued in public interest after a number of such requests were received by it from public sector banks (PSBs) seeking information of immovable assets of a loan defaulter to effect recovery from them.

"In this context, Board (CBDT) is of the view that sharing of information with PSBs in respect of assets held by defaulters of loans, so as to enable recovery of loans from such defaulters, is in public interest and hence, can be furnished."

"Besides statement of assets, if requested, information such as details of bank account, sundry debtors of the loan defaulter which may aid recovery of loan by the PSB from the loan defaulter, can also be provided," the CBDT order said.

This sharing of vital and classified data of an assessee, who is identified as a bank loan defaulter, will be done under section 138 (1)(b) of the I-T Act which states that if a prescribed application is made to the jurisdictional Principal Chief Commissioner or Principal Commissioner of I-T, he or she can furnish the information if they are satisfied that this sharing will public interest.

The order said the department possesses such information by way of ITR of an individual or Hindu Undivided Family (HUF), having total income in excess of Rs 50 lakh per annum, and is supposed to furnish particulars of assets and corresponding liabilities to the taxman every year under the direct taxes (I-T) law.