CBDT signs pact with MSME ministry to share depreciation, turnover info of small business

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The income tax department will start sharing data on depreciation, sales and gross turnover of micro, small and medium enterprises as reported in their ITRs with the MSME ministry.

The Central Board of Direct Taxes (CBDT) on Monday signed a memorandum of understanding (MoU) with the ministry of micro, small and medium enterprises (MSME).

“The MoU will facilitate seamless sharing of certain Income-tax Return (ITR) related information by the Income Tax Department to ministry of MSME. This data will enable ministry of MSME to check and classify enterprises in micro, small and medium categories…,” the CBDT said in a statement. The CBDT in an order date July 14 had 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 ITR-3, 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 had said.

The timeline for furnishing information will also be decided by Principal Director General of Income-tax (Systems) in consultation with the concerned Ministry and included in the said MoU, the order added. The CBDT statement said that the MoU will come into force from the date it is signed.

The Press Release can be accessed at: https://pib.gov.in/PressReleasePage.aspx?PRID=1639978

Read More at: https://timesofindia.indiatimes.com/business/india-business/cbdt-signs-pact-with-msme-ministry-to-share-depreciation-turnover-info-of-small-business/articleshow/77070132.cms