TogglIcon
ToolsLearnBytesTax Q&AGet Started

CBDT on an MoU Spree?



CBDT signs MoU with SEBI, MoMSME and CBIC for Exchange of Data and Information

CBDT and MoMSME

The Central Board of Direct Taxes (CBDT), the governing body for income tax, and the Ministry of Micro, Small, and Medium Enterprises (MoMSME) have recently signed an MoU on July 20. The agreement allows the IT Department to share information with the Ministry of MSME. These include depreciation on plant and machinery as reported in ITR 3, 5 & 6, sales/gross receipts of business as reported in ITR 3, 5 & 6; and gross turnover/gross receipts as reported in ITR 4.

Section 138 of the Income Tax Act empowers the department to share information/details of its taxpayers with other government agencies.

The data will help the MoMSME to check and classify the enterprises in the MSME category. There are companies that enjoy MSME status despite having surpassed the parameter based on investment limit in plant and machinery.

The tax authorities have certainly tightened their screws on such companies.

CBDT and SEBI

In addition, the Central Board of Direct Taxes (CBDT) has also joined hands with The Securities Exchange Board of India (SEBI), the capital market regulator. And just like other MoUs, this partnership also focuses on the exchange of information and data.

On 8th July 2020, CBDT and SEBI signed a Memorandum of Understanding (MOU) for the exchange of data. Both these authorities mutually agreed to share data of traders in three ways — request-based exchange, suo moto exchange, automatic exchange. As a part of the MOU, there would be sharing of data and information, maintaining the confidentiality and safe preservation of data. Tax Alert! The IT Department might be working to build a warehouse of information on taxpayers by sourcing data from third parties.

What will CBDT share with SEBI?

CBDT and CBIC

This is big – the partnership of two apex tax bodies.

On July 21, CBDT and CBIC (Central Board of Indirect Taxes) signed an MoU to facilitate the sharing of data and information on an automatic and regular basis, including on request and from their respective databases.

To sum it up, do you think these MoUs mark the beginning of a new era of cooperation and synergy between the CBDT and other ministries like SEBI, MoMSME, and CBIC?

Tweet Us--Like Us--Join Us

-4 Likes

Share
facebook twitter

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    What is the time limit in which I need to respond to the notice under section 139(9)?

  2. How can I respond to the notice received online?

  3. How much time it will take to process the refund once response to notice u/s 139(9) is filed?

  4. Avatar for Yesha Yesha says:

    Hey @HarshitShah

    It is very common to receive a notice from the Income Tax Department. The notice sent to you might be a routine inquiry or a request for clarification. There is no need to worry when you get a notice from the Income Tax Department. You will have 15 days time in which you will need to respond to the notice/file revised ITR.

    Hope this helps!

  5. Avatar for Yesha Yesha says:

    Hey @SonalYadav

    You can login to your account on the Income Tax e-filing website by entering your credentials i.e. User ID (PAN), password, and captcha code.

    Next, you need to click on the ‘e-file’ tab and select ‘Response to outstanding Tax Demand’ option.

    Hope this helps!

Continue the conversation on TaxQ&A

62 more replies

Participants

Scroll to Top Quicko