CBDT to share defaulters' info with PSBs for better recovery

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SME Times News Bureau | 27 Jun, 2019
The Income Tax Department (ITD) will share information on assets of loan defaulters with PSU banks follwing the state lenders' request to ITD to furnish details of immovable properties and assets of loan defaulters to enable them recover from such debters.

In a letter to all principal chief Commissioners of Incoem Tax, CBDT said Individuals or HUF having total income in excess of Rs 50 lakh where assets and corresponding liabilities held at end of each year may be provided to the PSBs as to aid recovery of loan from the defaulter".

Other than statement of assets, information such as details of bank account, sundry debtors of the defaulets that can help in the recovery of loan by the PSBs from the loan defaulter can also be provided, the letter said.

To provide misuse of such classified details, it is directed that the information will be provided in respect of the borrowers, mortgage or guaranteer of the loan only.

At the time of supply of such information, a confidentiality clause may be included to specify that such information will only be used for the purpose of recovery of loans and will not be shared with any other person or agency.

The government is taking steps as the number of wilful defaulters has surged in the last 5 years.

In a written answer to a question in the Lok Sabha, Finance Minister Nirmala Sitharaman said the total number of wilful defaulters stood at 8,582 at the end of FY19, against 5,349 at the end of FY15.

Sitharaman and Minister of State for Finance, Anurag Singh Thakur, defined a wilful defaulter as the one who has the resources to repay the loan, but does not do so intentionally, and deploys the money for purposes other than intended.

Sitharaman informed the Lower House that public sector banks (PSBs), till March 31, 2019, had filed suits for recovery in 8,121 cases.