The Income Tax Department had announced the issuance of pre-filled ITR forms last month to make returns easier. The department is collecting the necessary information for this, which will have to be given by May 31 in every assessment year. These include Special Financial Transactions (SFTs), including more than 10 lakh transactions.
The department said in a March 12 notification that financial institutions and mutual fund houses would have to disclose capital gains, dividends and interest to their clients.
Apart from this, there are many more SFTs, which will have to be reported. In this, more than 10 lakh cash deposits, FDs, credit card payments, bond debentures, mutual funds or purchase of shares, apart from buying and selling more than 30 lakh real estate will have to be given. The assessment year 20-21-22 is 2020-21, so the concerned financial institution or fund house will have to send the information to the department by 31 May 2021.
Suspicious transaction
The department believes that monitoring information on suspicious transactions will be easier if information about large amount transactions is received on time through financial institutions and fund houses.
This includes NBFCs, credit card companies, post offices. The role of the exchange with bond issuing companies will also be important. Information on such transactions has now been made necessary under Section 285BA of the Income Tax.
Taxpayer Review ITR Form
The department said that all the information will be included on the basis of adequate monitoring and registered sources, pre-filled ITR form. Despite this, taxpayers must cross check their forms once through various documents. For this, the help of bank statement, Form 26AS and interest certificates can be taken. This will enable taxpayers to avoid any mistake while filing returns.
