CBDT and Petroleum Ministry to Share Limited Income Tax Data

Limited Income Tax Data Sharing Approved Between CBDT and Petroleum Ministry

The Central Board of Direct Taxes (CBDT) has authorized a new channel for sharing limited income tax verification data with the Ministry of Petroleum and Natural Gas. This move, effective September 15, 2026, allows the Director General of Income Tax (Systems) to provide specific status updates rather than full tax records. The aim is to facilitate verification processes for the petroleum ministry while maintaining strict controls on sensitive taxpayer information.

This arrangement is based on Section 258(1) and Section 536(2)(j) of the Income-tax Act, 2025. It designates the DGIT (Systems) as the authority responsible for furnishing the approved information. The Joint Secretary (Marketing) from the Ministry of Petroleum and Natural Gas is the designated requesting authority. The file reference for this authorization is F. No. 225/305/2016-ITA.II (Part).

Five Specific Checks Authorized

The agreement permits five distinct types of checks, each designed to yield a simple status response. These checks are not intended to disclose comprehensive tax files or assessment details. Instead, they provide a clear “Yes,” “No,” or “Not available” answer to specific queries.

The authorized checks include:

• Return Filing: This verifies whether an individual has filed an Income Tax Return for the specified period.
• Government Employment: This check determines if the individual is currently employed by the government.
• Income Level: This assesses whether the person’s total income meets a mutually agreed-upon threshold. The exact income amount is not disclosed but is used for a binary comparison.
• Income-Tax Payment: This confirms if the income tax payable, after any applicable rebates, has been paid. It focuses on the net tax liability after adjustments.
• Professional Tax Payment: This check ascertains whether the individual has paid their professional tax.

The threshold for the income level check will be determined through consultation between the involved authorities. The authorization specifies that the income tax payment check pertains to tax payable after rebate, not after deductions.

Identity and Tax Period Requirements

For any verification request to be processed, the Ministry of Petroleum and Natural Gas must provide essential identification details. This includes the applicant’s Permanent Account Number (PAN) and/or Aadhaar number, along with the relevant Assessment Year or Tax Year. The DGIT (Systems) will use this information to conduct the check and provide the authorized status response.

A critical aspect of this process is the linkage between PAN and Aadhaar. If this linkage is missing or incomplete, the verification check cannot be performed. In such cases, the system will respond with a notification stating that the information “cannot be provided due to the lack of PAN-Aadhaar linkage.” This limitation ensures that the verification channel is dependent on the accuracy and completeness of the identity information supplied.

Formal Agreement and Data Controls

Before this data-sharing arrangement can become operational, the DGIT (Systems) and the Ministry of Petroleum and Natural Gas must execute a formal Memorandum of Understanding (MOU). This agreement will outline the specific procedures for data transfer, ensuring that information is handled securely and confidentially. It will also detail protocols for the safe preservation of any data received and establish clear guidelines for its deletion after the verification process is complete.

The MOU will also cover the timetable for these exchanges and the mechanism through which data will be transferred. These operational details will be finalized through consultations between the two government bodies. The authorization itself sets the framework for the information exchange, while the participating authorities will define its day-to-day functioning. This structured approach ensures that the Ministry of Petroleum and Natural Gas receives only the necessary verification flags, not unrestricted access to an individual’s complete tax history.

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