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Apr 14, 2021
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Income tax returns 2021-22: Here are the financial transactions that will get reported to the I-T department
The income tax department had notified the launch of pre-filled returns for ease and accuracy of filing.
To facilitate this process, CBDT issued a circular on March 12, 2021, authorising various entities to report such transactions to the income tax department. These specified entities will be responsible for providing the details of capital gains transactions, dividend and interest income of the taxpayers.
Currently, section 285BA of Income-tax Act 1961 governs the reporting of some specified financial transactions (SFT) by specified entities to the income tax authority. The section provides a list of transactions, their nature and threshold limit of a transaction pertaining to a particular taxpayer, beyond which the transacting entity shall have to report its details to the income tax authorities.
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