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CBDT to start sharing depreciation, turnover info of small biz with MSME Ministry

CBDT to start sharing depreciation, turnover info of small biz with MSME Ministry

The income tax department will soon start sharing data related to depreciation, sales and gross turnover of micro, small and medium enterprises with the MSME Ministry.

The Central Board of Direct Taxes (CBDT) has directed Principal Director General of Income Tax (Systems) to share information with the MSME Ministry.

Section 138 of Income Tax Act empowers income tax authorities to share information/ details of its taxpayers with other government agencies, as may be notified.

The information to be shared include depreciation on plant and machinery as reported in ITR3, 5 and 6, sales/gross receipts of business as reported in ITR-3, 5 and 6; and gross turnover/gross receipts as reported in ITR-4.

"To facilitate the process of furnishing information, Principal Director General of Income-tax (Systems) would enter into a Memorandum of Understanding ('MoU') with Notified Authority of Ministry of MSME, Government of India which inter-alia would include the mode of transfer of data. Maintenance of confidentiality, mechanism for safe preservation of data, weeding out after usage etc," the CBDT order dated July 14 said.

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