Income Tax Department To Share Taxpayers’ PAN, Other Data With SEBI
The income tax department will share all taxpayers' data, including PAN card numbers, with the Securities and Exchange Board of India in order to help the market regulator in its probe against various entities, including those involved in "stock market manipulation", an official order has said.
The Central Board of Direct Taxation, which frames policy for the tax department, had issued an order in this context on Feb. 10 under section 138 (1) of the Income Tax Act, 1961. The sharing of information will be under three broad heads—request-based exchange of data, suo moto and automatic.
The two organisations are expected to ink a memorandum of understanding soon in order to implement the decision and chalk out modalities of exchange of data, maintenance of confidentiality, the mechanism for safe preservation of data and weeding out after usage.
Under the suo moto exchange, information such as a list of scrutiny cases marked as having evasion or violation related to "stock market manipulation" and any other information considered necessary for SEBI, will be provided.
Under the request-based exchange data, the order said, the tax department will share PAN information that includes the date of application or creation for the Permanent Account Number, name of father or husband, date of birth or date of incorporation, photograph, signature (name of the signatory in case of non-individual).
Name and PANs of partners in partnership firm and LLPs, KYC information contained in income tax returns like email id, mobile number, address, IP address appearing on the acknowledgement of the filed ITR, financial particulars of the business as filed in ITR and tax audit report, including income from trading in securities, bank account details.
Other details like transactions reported by entities deducting tax at source and collecting tax at source and any other information considered necessary for SEBI will be shared, it said.
Under the automatic exchange of data, information contained in Form 61 (declaration to be filed by a person who has agricultural income and is not in receipt of any other income chargeable to income tax) will be provided to SEBI by the taxman.
"While furnishing the information, the specified income-tax authority shall form an opinion that sharing of such information is necessary for the purposes of enabling SEBI to perform its functions under its respective laws," the order said.