Pre-filled I-T forms with capital gains for quick tax filing process likely: Report

The government is considering providing pre-filled income tax (I-T) return forms with your capital gains data to ensure filings are completed by the July deadline, The Times of India reported.

The work to this end has begun, and it is likely to be implemented in the coming months, sources told the paper. Amendments to the Income Tax Act and the Finance Bill allow the government to seek data on annual financial statements, which could be used to conduct the process, it said.

Moneycontrol could not independently verify the report.

Discussions have been held with brokerages and other participants to make data available so that these pre-filled forms can be provided to taxpayers, a senior tax official told TOI.

Besides this, the Securities & Exchange Board of India (SEBI) has been consulted so that the dividend income can be included. Capital gains include earnings from mutual funds and share sales within a particular financial year.

For Tax Deducted at Source (TDS) on dividend income beyond Rs 5,000, the Centre could use data collected in the 26AS form, it noted.

This would be the second move towards pre-filled forms, as an attempt in 2019 aced glitches.

The official added that the goal was to “simplify things for an average taxpayer and make the process seamless.”