Income-tax data sharing under section 258: CBDT to give Yes/No income flags to Andhra Pradesh for welfare schemes and to the Petroleum Ministry
CBDT has issued two orders under section 258(1) of the Income-tax Act, 2025 naming the Director General of Income-tax (Systems), Delhi as the authority to share information. Andhra Pradesh will get a flag on whether a person crosses an agreed income threshold, to identify welfare-scheme beneficiaries. The Ministry of Petroleum and Natural Gas will get flags on five questions, in an order that replaces one of 17 June 2025.
Key facts
- In force
- Orders dated 9 September 2026 and 15 September 2026
- Who it affects
- Applicants and beneficiaries of Andhra Pradesh welfare schemes, persons whose PAN or Aadhaar is checked by the Ministry of Petroleum & Natural Gas, tax professionals
- What it is
- New facility
- Section
- Income Tax
- Published
- 15 September 2026
In 30 seconds
- Notification No. 118/2026 (S.O. 5003(E)) dated 9 September 2026 specifies the Secretary, ITE&C, Government of Andhra Pradesh under section 258(1)(b).
- CBDT’s order of the same date names DGIT (Systems), Delhi as the specified authority to furnish the information to Andhra Pradesh.
- The State supplies Aadhaar numbers or PANs with the assessment year or tax year; the reply is only a flag — “Yes / No / Not Available” — against a mutually agreed income threshold.
- A separate order dated 15 September 2026 covers the Joint Secretary (Marketing), Ministry of Petroleum & Natural Gas, superseding the order of 17 June 2025 under section 138(1)(a) of the 1961 Act.
- For the Petroleum Ministry the flags cover five questions, including whether a return was filed and whether income is above the agreed threshold.
- If an Aadhaar is not linked with any PAN, the reply is that information cannot be made available.
हिंदी में सार
CBDT ने Income-tax Act, 2025 की धारा 258(1) के तहत दो आदेश जारी किए हैं। आंध्र प्रदेश सरकार को कल्याण योजनाओं के पात्र लाभार्थी पहचानने के लिए सिर्फ़ यह संकेत (Yes/No/Not Available) मिलेगा कि व्यक्ति की आय तय सीमा से ऊपर है या नहीं। पेट्रोलियम मंत्रालय को पाँच सवालों पर ऐसा ही संकेत मिलेगा; यह आदेश 17 जून 2025 के पुराने आदेश की जगह लेता है। जानकारी DGIT (Systems), दिल्ली देंगे और गोपनीयता के लिए MoU होगा।
Before and now
Order dated 17 June 2025 under section 138(1)(a) of the Income-tax Act, 1961.
Order dated 15 September 2026 under section 258(1) of the Income-tax Act, 2025, in supersession of the earlier order.
What has been issued
Section 258(1) of the Income-tax Act, 2025 is the provision under which the Income Tax Department furnishes information about taxpayers to other authorities. In September 2026, CBDT used it twice.
| Andhra Pradesh | Ministry of Petroleum & Natural Gas | |
|---|---|---|
| Document | Notification No. 118/2026 (S.O. 5003(E)) and CBDT order, both dated 9 September 2026 | CBDT order dated 15 September 2026 |
| Who receives the information | Secretary, ITE&C, Government of Andhra Pradesh | Joint Secretary (Marketing), MoP&NG, as notified by Notification No. 118/2016 dated 16 December 2016 |
| Who furnishes it | Director General of Income-tax (Systems), Delhi | Director General of Income-tax (Systems), Delhi |
| Purpose stated | Identifying eligible beneficiaries under welfare schemes of the State Government | Not stated in the order |
| What is supplied to the Department | Aadhaar numbers or PANs, with assessment year(s) / tax year(s) | PANs or Aadhaar numbers, with assessment year(s) / tax year(s) |
| What comes back | A flag “Yes / No / Not Available” on a mutually agreed threshold income level | A flag “Yes / No / Not available” on five queries |
The five queries for the Petroleum Ministry
- Whether an income-tax return was filed.
- Whether the person is a Government servant.
- Whether the person has total income above the threshold mutually agreed in the MoU.
- Whether income tax is payable after rebate.
- Whether the person paid professional tax.
This order is issued in supersession of the earlier order dated 17 June 2025 under section 138(1)(a) of the Income-tax Act, 1961, and in pursuance of section 536(2)(j) of the 2025 Act. It brings the existing arrangement under the new Act.
What is not shared
In both cases the reply is a flag, not the person’s income figure or return. Where the Aadhaar number supplied is not linked with any PAN in the Department’s database, the reply is: “Information cannot be made available due to absence of PAN-Aadhaar linkage”.
The safeguards in the orders
DGIT (Systems), Delhi is to enter into a Memorandum of Understanding with the notified authority in each case. The MoU is to cover the mode of transfer of data, maintenance of confidentiality, the mechanism for safe preservation of data and weeding out after usage. The timeline for furnishing information is to be decided by DGIT (Systems) in consultation with the notified authority and written into the MoU. For Andhra Pradesh, the frequency and mode of exchange are likewise left to DGIT (Systems) in consultation with the State. A copy of each MoU goes to CBDT for record.
What this means for individuals
- A welfare-scheme applicant in Andhra Pradesh may be checked against income-tax records through Aadhaar or PAN; the State learns only whether the person is above or below the agreed income level.
- If the Aadhaar is not linked with a PAN, the Department cannot give a flag — the orders provide a separate reply for that case.
- The income threshold itself is not in the orders; it is to be agreed between the Department and the authority concerned.
Questions and answers
Will the Andhra Pradesh Government see my income-tax return?
No. Under CBDT’s order of 9 September 2026, the reply to the State is only a flag — “Yes / No / Not Available” — on whether the person is within a mutually agreed threshold income level, for the Aadhaar or PAN and the year supplied by the State.
Why is this information being shared with Andhra Pradesh?
Notification No. 118/2026 says it is for identifying eligible beneficiaries under various welfare schemes being implemented by the Government of Andhra Pradesh.
What does the Petroleum Ministry get to know?
A Yes / No / Not available flag on five questions: whether a return was filed, whether the person is a Government servant, whether total income is above the agreed threshold, whether income tax is payable after rebate, and whether the person paid professional tax.
What if my Aadhaar is not linked with PAN?
The Department replies that information cannot be made available due to absence of PAN-Aadhaar linkage.
Who in the Income Tax Department shares the data?
The Director General of Income-tax (Systems), Delhi, who is to sign an MoU with the receiving authority covering confidentiality, safe preservation of data and weeding out after use.
Published 15 September 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.