The Central Board of Direct Taxes (CBDT), Ministry of Finance, Government of India, has issued an Order under Section 258(1) of the Income-tax Act, 2025, providing for sharing of specified income-tax information with the Government of Andhra Pradesh for the purpose of identifying eligible beneficiaries under various welfare schemes being implemented by the State Government.
The Order, issued vide F. No. 225/84/2024/ITA-II dated 9 September 2026, designates the Director General of Income-tax (Systems), Delhi [DGIT (Systems)] as the specified authority for furnishing information to the Secretary, Information Technology, Electronics & Communications (IT,E&C), Government of Andhra Pradesh, who has been notified for this purpose vide Notification No. 118/2026 dated 09.09.2026.
Under the prescribed mechanism, the Government of Andhra Pradesh will furnish Aadhaar Number(s) and/or Permanent Account Number(s) (PANs), along with the relevant Assessment Year(s)/Tax Year(s), as applicable, to DGIT (Systems), Delhi for verification of income-related eligibility.
Where a PAN is provided, or where the Aadhaar number furnished is linked with a PAN, DGIT (Systems) will verify the information available in the Income Tax Department database and provide a response to the Government of Andhra Pradesh in the form of a “Yes/No/Not Available” flag. The response will indicate the position in relation to the mutually agreed threshold income level for the Aadhaar Number(s)/PAN(s) and the relevant Assessment Year(s)/Tax Year(s) shared by the State Government.
In cases where the Aadhaar number provided by the State Government is not linked with any PAN in the Income Tax Department database, DGIT (Systems) will communicate the response through the flag: “Information cannot be made available due to absence of PAN-Aadhaar linkage.”
The frequency of furnishing such information and the mode of exchange of data will be decided by DGIT (Systems), Delhi, in consultation with the Government of Andhra Pradesh. This will enable the two authorities to establish an appropriate mechanism for effective and secure exchange of information.
To operationalise the information-sharing arrangement, DGIT (Systems), Delhi and the notified authority of the Government of Andhra Pradesh will enter into a Memorandum of Understanding (MoU). The MoU will, inter alia, specify the mode of transfer of data, maintenance of confidentiality, mechanisms for safe preservation of information, and weeding out/deletion of data after its intended use.
The timeline for furnishing the information will also be determined by DGIT (Systems), Delhi, in consultation with the notified authority of the Government of Andhra Pradesh, and incorporated in the MoU.
The measure is expected to facilitate more accurate identification of eligible beneficiaries of welfare schemes through structured verification of income-related criteria, while providing for safeguards relating to the confidentiality, security and appropriate use of information exchanged between the concerned authorities.
The Order can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/order-under-section-258-of-ita2025-9-9-26-pdf
