CBDT and GSTN sign an MoU to seize evaders to decrease black money generation

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The income tax (I-T) department and Goods and Services Tax Network (GSTN) signed a joint agreement to enhance information exchange between the 2 firms and to arrest tax evaders and decrease generation of black money.

The income tax department will exchange important financial information, namely, status of I-T (Income Tax) return filings, yield of business, gross total income, turnover ratio with GSTN.The 2 agencies are yet to decide on the procedure of information exchange for “automatic”, “spontaneous” and “request based” data.

The principal of I-T (systems) or director general of I-T (systems) will sign a Memorandum of Understanding (MoU) with GSTN for exchange of such information.The circular issued by the central board of direct taxes stated that the various methods of transfer of data between the 2 agencies that the MoU would include are: confidentiality, timing, secure preservation and disposal after use, related to the exchange of data.

This specific step will permit the I-T department to probe the information filed by businesses in income tax returns as compared to the yearly GST (Goods and Services Tax)returns.