The Income Tax Department has started sharing the list of all the bank accounts and properties of borrowers with the banks. It can be troublesome for those who deliberately avoided paying the debt.
Going the extra mile, the I.T. Department is conveying the information about debt defaulter’s bank account, properties and guarantors, to the government banks after receiving orders from Central Board of Direct Taxes.
Witnessing the increasing number of debt-defaulters, the government banks had requested the Central Board of Direct Taxes (CBDT) to take measures to recover the money from the debt defaulter. As a recovery measure, the CBDT has asked the Income Tax Department to share the details of the properties and accounts of the debt defaulters with the banks so that some action can be taken against the borrowers and the public money can be recovered from them. According to the new order of CBDT, the tax department will deduce this money from income tax return (ITR) of the income taxpayer.
The CBDT, which formulates the policies for the Income Tax Department, gave instructions to all field offices on Wednesday. The CBDT has said that it has received requests from government banks to submit the details of properties and bank accounts of debt-defaulters.
The banks have sought details of the fixed assets of such defaulters so that the recovery measures can be taken forward. The CBDT believes that the details of the property of debt defaulters should be shared with the public banks so that they can recover the stuck loan from them. Loans provided by the banks are ten per cent of the total debt which is unpaid.
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Before sharing the details like bank accounts, guarantors and mortgaged properties, the outstanding tax of such debt defaulters will also be considered. Before utilising the money received from the sale of defaulter’s movable or immovable property, the bank will take NOC from the Income Tax Officer.
I.T. department and government banks are pulling out all the stops to recover the money from defaulter and their joint efforts will inevitably retrieve a good portion of it.
