- A Memorandum of Understanding (MoU) was signed between the Central Board of Direct Taxes (CBDT) and the Ministry of Micro, Small and Medium Enterprises (MoMSME) on 20th July 2020, for data exchange between the two organizations.
- The MoU comes into force immediately i.e., it will be effective from 20th July 2020.
- This MoU will facilitate the sharing of Income tax related data and information by Income Tax Department to MoMSME on an automatic and regular basis.
- This data sharing will enable MoMSME to check and classify enterprises in Micro, Small and Medium categories as per the criteria.
- Both the organizations will appoint Nodal Officer and Alternate Nodal Officers to facilitate the process of data exchange.
- The MoU marks the beginning of a new era of cooperation and synergy between the CBDT and MoMSME.
- In all, the CBDT has now entered MoU’s with SEBI & CBIC and MoMSME. This means, the tax authorities want complete transparency and accuracy of data filed with various Government authorities.
- This would surely oblige the taxpayer to stop hiding or misrepresenting the data, while filing with the various government authorities.