Investment details of taxpayers may soon come pre-filled in ITR forms. This move forms part of the government’s efforts to ease the whole e-filing process for taxpayers.
The revenue department is in talks with SEBI to work out a mechanism whereby ITR forms will come prefilled with some of the investment details of taxpayers, various news reports have suggested. Soon, details of dividend from mutual funds and gain/loss on equities and interest income may come prefilled on one’s ITR form, The Economic Times reported.
A government official has said. “We are in talks with SEBI…we have had two rounds of meetings already,” according to the Indian daily newspaper. The official added that pre-filled forms would soon be able to extract salary break-up directly from an individual’s Form 16.
Currently, the breakup has to be manually fed, and this tends to get confusing for some.
This move is part of the government’s initiative to improve tax compliance. Kuldip Kumar, partner at PwC, has said that providing prefilled ITR forms with such a detailed information will benefit entities to confirm and file the return quickly, reports The Economic Times. The information available in pre-filled ITR form 1 and 2, at the moment, include - personal details, employer details, tax exempt allowance and tax deducted at source.