Non Performing Asset is a very big problem for Indian banks , specially public sector banks. So ,banks are paying special attention to recover the outstanding loans . It can be easily understood that the key to successful recovery of loan is information about the assets of the defaulters. It is also a fact the Income Tax department is storehouse of financial information about Indian residents . Thus , they requested government to direct that income tax department for sharing information regarding assets of defaulters.
CBDT has now issued circular to its chief commissioners that in case any bank ask for information against a loan defaulter under section 42B of the Wealth Tax Act , the provision of details should be considered in “public interest” .
