Individual Form 16 is available in a pre-filled format for recording breakup salaries. Generally, dividend details from mutual funds, profit or loss on equities ITR filing with interest for annual income that you get from home. All details are recorded in an individual’s I-T return form, and you pay tax if it is due; you need to file it.
Regular market IT regulators give a better idea of the new inclusions made by the revenue department and take your prefilled return applications to the next level. The tax department perfectly moderates the taxpayers’ investment returns. As per the official’s statement, “We are in talks with Sebi…we have had two rounds of meetings already,”
This brings ease of living for taxpayers and this is initiated by the government. The declaration given by the officials was the breakup salary information will directly be collected from your Form 16. The salary breakup is to be filled by the individual in the present scenario and might be confusing though for few.
Anyone can easily collect personal details, bank details, and taxes paid using the PAN number, and the prefilled form can be downloaded from the official site. The interest for income tax utility can be imported from all banks’ savings accounts. Also, as the revenue officials said, an auto-populate facility for PAN and AADHAAR numbers will be generated.
As it assures to collect all the details without missing out any income collected and not leaving out any dues. As the savings account interest are many a times missed out, this type of auto-filling favors many people who forget adding savings interest to the list.
The basic thought behind such new type of form filling is to ease the taxpayer comfortably include all details without missing anything. This has moved to faceless assessment cutting down the physical tug-of-war between tax officials and taxpayers.
The IT department uses newer technologies and has kept undeclared income and Annual Information Return records on multiple purpose of expenditure under control. The incurred expenditure above the particular point might be very stressful and the investments include credit card spend, and investment in mutual fund.
All taxpayers must be facilitated, and thus, the government has taken the initiative to use technology, making the facility of tax payment and filing more convenient. This will help control tax leakage and maintain continuous oversight. This convenient technology has facilitated many taxpayers. Experts like Kuldip Kumar, partner at PwC, said, “So far, the government has been using technology to monitor compliance and check tax leakages. Providing prefilled return forms with such detailed information will really help taxpayers to confirm and file the return quickly, where there is no discrepancy.”
As of now, all the ITR form 1, ITR Form 2 are prefilled with personal details, employer, tax exempt allowance, tax deducted at source details.
Thus, from a global perspective, a few countries, such as Sweden, have implemented online tax filing portals, and the prefilled return concept has been a great success. On a similar note, India has started this year in a limited circle. Now, following the success, it will be carried forward to the next level. Here, taxpayers need to verify and authorize the provided details. Submit the form to the department for verification and approval by the concerned department.
