Now all capital features, dividend and curiosity earned might be reported to tax dept

NEW DELHI: Enhancing the scope of Specified Financial Transactions (SFTs), the Central Board of Direct taxes issued a round on 12 March to incorporate capitals features arising from sale of mutual funds and shares, dividend obtained on shares, in addition to curiosity earned from financial institution and publish workplace financial savings or deposits with non-banking monetary transactions. Certain entities together with monetary establishments equivalent to banks, mutual fund homes, registrars, bond issuers, amongst others, are required to report transactions past a specified restrict within the monetary 12 months to the tax division. These transactions are referred to as specified monetary transactions (SFTs) beneath the 114E of the Income Tax Act 1962. Also Read | How India tightened the noose round OTT With this, inventory exchanges, firms, mutual fund homes, publish places of work, banks and many others must present info to the tax division. So, in case you have earned capital features by promoting your mutual fund items, the identical might be reported by the fund home to the tax division. Interest earned on financial institution or publish places of work deposits can even be reported to the tax division. Till now, solely high-value transaction equivalent to money deposited to saving financial institution accounts, buy of shares, debentures, mutual funds, buyback of shares value greater than ₹10 lakh on an mixture foundation throughout a monetary 12 months, bank card funds of ₹1 lakh or extra in money or in any mode of ₹10 lakh or extra throughout a monetary 12 months, have been reported. There are round 16 such transactions. Providing info associated to capital features, dividend and curiosity revenue will assist the tax division give prefilled info within the tax types to the taxpayers. “The purpose of reporting these transactions is to enable the tax department to provide this information pre-filled in the ITR forms to the taxpayers as announced in the Budget speech of 2021 by the Finance Minister. There is no monetary ceiling prescribed for reporting these transactions. Therefore, each and every transaction will be reported to the tax department and the same will be provided pre-filled to the taxpayers for ease of filing Income-tax returns,” stated Tarun Kumar, a Delhi-based chartered accountant Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our publication.