Disclosure of information to NADRA [Section 216(3)]

Disclosure of information to NADRA: As per sub-section (1) of section 216 of the Income Tax Ordinance, 2001 public servants are barred from disclosing information contained in tax returns/statements/ accounts as well as documents furnished, evidences given and affidavits or depositions made during the course of proceedings under the Ordinance (except proceedings relating to offences and prosecutions). In addition, any record related to assessment or recovery proceedings under the Ordinance is also to be kept confidential.

However, certain exceptions have been provided in sub-section (3) of section 216 of the Income Tax Ordinance, 2001 where information can be disclosed to specified persons and organizations.

Through the Finance Act, 2018, the National Database and Registration Authority (NADRA) has been included in the list of organizations that do not fall within the ambit of the confidentiality clause in terms of sub-section (1) of section 216 of the Income Tax Ordinance, 2001.

This amendment would assist the Federal Board of Revenue for purposes of broadening of the tax base.