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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Under the Income-tax Act, 2025, the Board wants to share information obtained by an income-tax authority about an assessee with an officer of a body administering a law on imposition of a tax, duty or cess. Which statement is correct as per section 258(1)?

The Board, or an income-tax authority specified by it, may furnish information obtained under the Act to officers or bodies administering tax, duty, cess or foreign exchange laws, if in its opinion the information is necessary for their functions. Assessee consent or an application is not required under section 258(1).

  1. AThe Board may furnish such information only after the assessee gives written consent
  2. BThe Board or a specified income-tax authority may furnish information that, in its opinion, is necessary to enable that officer or body to perform its functions under that lawCorrect
  3. CThe information can be furnished only to bodies under laws on income-tax, not to any other tax, duty or cess law
  4. DThe information can be furnished only by a Commissioner on an application made by the recipient

Explanation

Section 258(1)(a) lets the Board, or an authority it specifies by order, furnish information to any officer or body performing functions under a law on imposition of any tax, duty or cess, or dealings in foreign exchange. The test is the Board's or authority's opinion on necessity for that body's functions. Assessee consent is not required. The application route applies to private persons under sub-section (2), not to this case.

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