Tax rules amended to step up tax payer data collection
PrintListen to this Article
Till now, these entities were only mandated to give a statement of financial transactions by their clients on or before 31 of May following the end of the financial year in March.
The idea is to get information about large transactions by the tax payer that will be used in preparing pre-filled income tax returns, an initiative the government is betting on to improve tax compliance and convenience of filing income tax returns.
The notification said for making pre-filled income tax returns, agencies like stock exchanges, depositories, clearing corporations, registrars, banks, companies, Post Master General and non-bank lenders have to issue statements of financial transactions by their clients “in such form, at such frequency, and in such manner, as may be specified" by a designated official.
Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), are authorised to seek such information with the approval of Central Board of Direct Taxes (CBDT), said the notification. Capital gains from sale of listed shares as well as dividend and interest income are covered under this.
The change brought out by the Income-tax (4th Amendment) Rules, 2021, is effective immediately, the notification said.
The Income Tax department has been stepping up data collection of large transactions in the economy and analysing it to find out unreported income. To facilitate that, it has restricted transactions in cash and has introduced taxes to be deducted or collected at source on a large number of transactions. It is also now actively exchanging data with the Goods and Service Tax (GST) authorities and the Customs authorities to match details of transactions. The idea is to help in formalisation of the economy and widen the tax base. Adding more tax payers would enable a reduction in the tax rates.
Category : Income Tax | Comments : 0 | Hits : 1080
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
Comments