Income tax return forms will soon come pre-filled with information on investment returns from various instruments such as dividend on mutual funds, gains or losses made on equity investments as well as other interest income.
In a bid to take pre-filled ITR forms to the next level, the revenue department is already in discussion with the market regulator SEBI for exploring the proposal of getting investment details of taxpayers. "We are in talks with Sebi...we have had two rounds of meetings already," the official was quoted as saying in the Economic Times report.
With the implementation of the idea, taxpayers' e-filing burden will be eased as they would just need to review the details, pay tax liability as the case may be and file the return.
Further as per the official, pre-filled ITR forms will soon be able to extract salary break up from one's form 16 or TDS certificate. In the current regime, salary breakup is to be fed manually which though gets confusing for some of the taxpayers.
Pre-filled tax forms introduced by the department can be downloaded using one's PAN and features all such information including personal details, bank account details and taxes paid. Also, making use of these bank account details, income tax utility will import interest income earned on all of the individual's savings accounts which mention either the person's PAN or Aadhaar and auto-populate in the ITR form.
The move is to make sure that all of the individual's investment returns are duly reported in the return form and the department gets the due taxes paid accordingly.