Wary CBDT seeks undertaking on non-disclosure of information on black money

The Central Board of Direct taxes (CBDT) has ordered the income tax department to get signed undertakings from any government entity or department that seeks data for their own investigations.

CBDT says that any leakage or publicising of these names may invite negative response from global financial bodies like OECD with which India has tax information exchange treaties. These countries may either stop giving information or become reluctant to share data with India as this will act as a deterrent to foreign investors in those economies.

The CBDT now wants the official receiving information on secret bank accounts like that of Liechtenstein's LGT Bank provided by the German government to ensure that the data collected is used solely for investigation into tax evasion.

The CBDT claims to have over 9,900 pieces of information received from several countries regarding illegal funds stashed abroad by Indian citizens.

Data on secret overseas bank accounts of Indians is mainly sought by agencies like the Directorate of Criminal Investigation (I-T), tax assessment ranges and International Taxation, as they need such information for taking legal action against such tax evaders.

The CBDT has already circulated 'Top Secret' names to a number of I-T investigation units in Delhi, Mumbai, Kochi and Ahmedabad among others.