PRE-FILED INCOME TAX RETURNS IS NOW AVAILABLE TO TAXPAYERS
Due to the impact of coronavirus pandemic in India, the economy has been largely affected. The lockdown has led to a disastrous impact on the economy. With an ever-increasing corona virus cases, lockdown was considered as an only solution to flatten the curve.
Various measures was taken by Government of India to manage the situation, from food security and extra funds for health care and for the states, to sector related incentives and tax deadlines.
Due to COVID -19 pandemic a lot of income tax due dates were extended. The Income Tax Return Filing Date for Financial Year 2019-2020 is extended till 31st December, 2020 for individual taxpayers.
The Aadhaar-PAN Linking Deadline was also extended by the Income Tax Department till March 31, 2021.
Upon all this relaxation was provided by the Finance Minister, that pre-filled Income Tax Return (ITR) forms will be available for individual taxpayers-tweets Nirmala Sitharaman recently.
What is meant by Pre-filed ITR’s?
From now onwards, the ITR form will have more pre-filled details that includes that column of salary. Among them few fields are already pre-filled in the ITR forms for the year 2019.
The Income Tax Act takes into account different types of salaries, Income from business or Profession, House property, Capital Gains and Income from other Sources/Residual Income.
Tax Department enabled the taxpayers to prefill the forms for linking their Adhaar Card, Pan card and bank accounts. Further this facility has been extended to ensure that the details in a bulk can be automatically filled which can be even submitted once approved by the tax filer.
Details include bank interest, salaries and tax deductions.
The downloaded ITR form from the e-filing account if individuals, would now contain pre-filed details of Income from salary income, Income from house property, Income from capital gains from securities, bank interests, dividends and deductions.
Information related to these incomes will be collected from the concerned sources such as from their bank, stock exchanges, mutual funds, State registration Departments, EPFO. PAN will be used to collect information form Form 26AS, TDS return filed by the taxpayers and also the information about previous year’s ITR form.
Document Identification Number(DIN):
The Income Tax Department has started to conduct all the communication related to assessment, investigation, and redressal through a Document Identification Number (DIN), which is computer generated.
In order to keep a trail, every communication to be issued by the income-tax department will have a Document Identification Number (DIN). It will be relating to assessment, appeals, enquiry, penalty, prosecution, etc. It will bring in transparency in the functioning of the tax administration as almost all notices and orders of the IT department are being generated electronically.
However, the department has underlined that under five specific circumstances communication can be issued manually which include, technical difficulty in issuance of DIN, unavailability of concerned official in the office, delay in PAN migration, unavailability of PAN and functionality to issue communication in the system. Communication issued manually will be permitted only after recording reasons in writing and with the prior written approval of the Chief Commissioner or Director General of Income-Tax.
ITRs are randomly selected for scrutiny, where the I-T officer seeks additional information to verify taxable income as stated by the assessee. Scrutiny notice can be of two types: limited or complete scrutiny. In the former, the taxpayer is required to submit details with respect to specified transaction/ query for which scrutiny has been initiated. Under complete scrutiny, a tax officer can ask the taxpayer to show a detailed list of documents/information. Individuals can reply to the notice online through one’s I-T
BENEFITS OF PRE-FILED ITR’S:
These pre filed ITR’s will make tax compliance easier for everyone.
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