CBDT specifies ‘Scheduled Commercial Banks’ for disclosure of Information respecting assesses [Read Notification]

The Central Board Direct Taxes (CBDT) on Monday specifies “Scheduled Commercial Banks” for disclosure of information respecting assessees under Section 138(1)(a)(i) of the Income Tax Act, 1961.

“In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of Section 138 of the Income-tax Act, 1961, the Central Government hereby specifies “Scheduled Commercial Banks” listed in the Second Schedule of the Reserve Bank of India Act, 1934 for the purposes of the said clause,” the notification said.

The  Section 138(1)(a)(i) of the Income-tax Act, 1961 says that the Board or any other income-tax authority specified by it by a general or special order in this behalf may furnish or cause to be furnished to such officer, authority or body performing functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest, specify by notification in the Official Gazette in this behalf, any such information received or obtained by any income-tax authority in the performance of his functions under this Act, as may, in the opinion of the Board or other income-tax authority, be necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law.

The 2nd Schedule of the RBI Act,1934 contains the list of Scheduled Commercial Banks. The two basic conditions for a bank to be a Scheduled Commercial Bank are the Paid Up Capital of the bank should be 5 lakh and above. The bank should work in the interest of depositors. This include Foreign Banks, National Banks, Private Banks and Cooperative Banks.