MM TAX CLUB

The Central Board of Direct Taxes (CBDT) vide Order dated March 27, 2024 notified the Director General of Income-tax (systems), Delhi as specified authority under section 138 of the Income Tax Act, 1961, for furnishing information to Principal Secretary, Planning Department, Government of Uttar Pradesh.

Central Board of Direct Taxes, in exercise of powers conferred under clause (a) of sub- section (1) of section 138 of Income-tax Act, 1961 ('the Act'), hereby directs that Director General of Income-tax (Systems), Delhi shall be the specified authority for furnishing information to Principal Secretary, Planning Department, Government of Uttar Pradesh as notified by Notification No. 35/2024 dated March 22, 2024 for the purposes of said clause.

The mechanism of sharing of information shall be as under:

i. Government of Uttar Pradesh shall furnish the PAN of the relevant set of citizens along with the Assessment Year(s) to DGIT (Systems), Delhi.

ii. DGIT (Systems), Delhi shall furnish the response to Government of Uttar Pradesh in the form of flag "Yes/No/Not Available" based on the income-tax payer status of the shared PAN and Assessment Year(s).

iii. The frequency of furnishing such response shall be decided by the DGIT (Systems), Delhi in consultation with the requesting Government.

iv. Mode of exchange of information shall be through API.

To facilitate the process of furnishing information, Director General of Income-tax (Systems), Delhi would enter into a Memorandum of Understanding (MoU) with Notified Authority of Government of Uttar Pradesh, 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 timeline for furnishing information shall also be decided by Director General of Income-tax (Systems), Delhi in consultation with the notified authority and included in the said MoU.

A copy of MoU shall be forwarded to this Division for record purposes.

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