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Published on 4 April 2025

CBDT Authorizes Data Sharing with DFPD for PMGKAY Eligibility Verification

Introduction

The Central Board of Direct Taxes (CBDT) has issued an order under Section 138(1)(a) of the Income-tax Act, 1961, authorizing the Director General of Income-tax (Systems) in New Delhi to share taxpayer information with the Department of Food and Public Distribution (DFPD), part of the Ministry of Consumer Affairs. This initiative is designed to enhance the identification of eligible beneficiaries for the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Information Sharing Mechanism

Data Provision

  • Aadhaar and PAN Details: The DFPD will supply Aadhaar numbers or Permanent Account Numbers (PAN) along with the relevant assessment years to the DGIT (Systems).

Eligibility Response

  • Flagging Responses: Utilizing data from the Income Tax Department’s database, the DGIT (Systems) will indicate eligibility status with flags:
    • “Yes” if eligible
    • “No” if not eligible
    • “Not Available” if data is incomplete.
  • Linkage Issues: If an Aadhaar number is not linked to a PAN, the response will state that information cannot be provided due to the lack of PAN-Aadhaar linkage.

Frequency and Method of Exchange

  • Determination by DGIT (Systems): The DGIT (Systems) and DFPD will establish how often and by what means the data will be exchanged.

Memorandum of Understanding (MoU)

The DGIT (Systems) will draft a Memorandum of Understanding with the DFPD that will include:

  • Data Transfer Process: Outline of how the information will be shared.
  • Confidentiality and Data Protection: Measures to ensure data is kept secure and confidential.
  • Data Preservation Protocols: Guidelines for safe storage and deletion of data post-use.
  • Timelines: Agreed-upon timelines for data sharing, which will be discussed with the DFPD.

Compliance and Record Keeping

This directive ensures efficient identification of beneficiaries under PMGKAY while maintaining confidentiality and adhering to procedural safeguards. A copy of the MoU will be filed for record-keeping purposes.

The Central Board of Direct Taxes, exercising its powers under Section 138(1)(a) of the Income-tax Act, 1961, directs the Director General of Income-tax (Systems), New Delhi, to provide information to the Joint Secretary of the DFPD. This order, linked to Notification No. 12/2025 (S.O.: 524(E), dated 30.01.2025), pertains to identifying eligible beneficiaries under the PMGKAY program.

Details of Information Sharing

  1. Provision of Aadhaar/PAN: The DFPD will provide necessary Aadhaar Number(s) or PAN(s) along with assessment years to the DGIT (Systems).
  2. Income Eligibility Flags: If the PAN or linked Aadhaar is verified, the DGIT (Systems) will respond with the specified income level flags.
  3. Linkage Limitation: If Aadhaar is not linked to a PAN, the response will indicate unavailability of the information.
  4. Exchange Frequency: The DGIT (Systems) will determine the exchange frequency and methods in coordination with the DFPD.

MoU Framework

The Director General of Income-tax (Systems) will formulate a Memorandum of Understanding with the DFPD, detailing:

  • Data Transfer Procedures
  • Confidentiality Assurances
  • Data Safety Protocols

A copy of the MoU will be maintained for official records.

Conclusion

In summary, the collaboration between CBDT and DFPD aims to streamline the identification of beneficiaries for the PMGKAY, leveraging taxpayer data while ensuring stringent data protection measures are in place.

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