The Income Tax (IT) Department will share all taxpayers’ data like PAN information with SEBI in order to help the capital market regulator in its probe against various entities, including those involved in ‘stock market manipulation’, said officially. The Central Board of Direct Taxes (CBDT), which frames policy for the tax department, had issued an order in this context on February 10 under section 138 (1) of the I-T Act. 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 (MoU) 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. The CBDT said under the suo moto exchange, information such as list of scrutiny cases marked as having evasion or violation related to ‘stock market manipulation’ and any other information considered necessary for SEBI (Securities and Exchange Board of India), will be provided.