To tell or not to tell?that is the question taxing tax authorities all over the country in the face of various applications submitted under the Right to Information for tax related information.
The income tax department in recent months has been faced with a plethora of queries for tax related information, especially third party information under the RTI. However it often becomes difficult for tax officials to decide where to draw the line. The issue was in fact also taken up at the recently held annual conference of income tax chief commissioners and director generals earlier during the week.
Under the Income Tax Act, 1961 most financial information is considered confidential. various sections in the Act in fact prescribe procedures for giving out information. Section 287 of the I-T Act permits limited publication of information about tax assesses, especially tax evaders. Section 138 of the Act says such information may be given to specified institutions and authorities performing statutory functions or in public interest. It however also lays down that apart from these conditions, no document or information should be given out by the income tax department to anyone. For applicants seeking information about their own assessment, returns or refunds, the department is usually more forthcoming.
But the standard procedure followed by the department in third party queries is to consider all financial information as confidential. In such cases, the department usually enquires from the third party and if he wishes then give out limited information. In other cases, the department withholds the information, and often is taken to the Chief Information Commission (CIC.) ?We never know how the information may be used by the applicant,? an income tax official said.