A formal Memorandum of Understanding (MOU) was signed today between the Central Board of Direct Taxes (CBDT) and the Ministry of Micro, Small and Medium Enterprises, Government of India (MoMSME) for sharing of data by CBDT to MoMSME. The MoU was signed by Smt. Anu J. Singh, Principal Director General of Income Tax (Systems), CBDT and Shri. Devendra Kumar Singh, Additional Secretary & Development Commissioner, MoMSME.

The MoU will facilitate seamless sharing of certain Income-tax Return (ITR) related information by the Income Tax Department to MoMSME. This data will enable MoMSME to check and classify enterprises in Micro, Small and Medium categories as per the criteria notified in the Notification No. S.O. 2119(E) dated 26/06/2020 of MoMSME.

The MoU comes into force from the date it was signed. Both the organisations will appoint Nodal Officer and Alternate Nodal Officers to facilitate the process of data exchange.

The MoU marks the beginning of a new era of cooperation and synergy between the CBDT and MoMSME.

Data sharing for enterprise classification enables use of income tax return information to classify micro, small and medium enterprises. A Memorandum of Understanding creates a formal data sharing arrangement permitting transfer of specified Income tax Return information to the Ministry of Micro, Small and Medium Enterprises to enable checking and classification of enterprises as Micro, Small and Medium under the Ministry's notified criteria. The MoU is effective on signature and requires each party to appoint a Nodal Officer and Alternate Nodal Officers to facilitate and manage the authorised exchange of ITR related information.