Sep 09, 2021
Tax portal 2.0 to integrate with bourses to track trade transactions
The income-tax (I-T) department is working on integrating the new e-filing portal with stock exchanges to help tax authorities track trade transactions, including futures and options.
The integrated system will look at discrepancies between the data disclosed by an assessee and match it with data fetched from stock exchanges, using artificial intelligence, said two officials in the know.
This will help detect and red-flag such matters, particularly those related to non-filers of income-tax return (ITR).
The department aims to achieve this integration this fiscal year.
This comes at a time when there are concerns over growing retail participation in the equity markets.
The share of individual retail investors in the National Stock Exchange’s cash market turnover has shot up from 39 per cent in 2019-20 to 45 per cent in 2020-21.
After integration, the portal will automatically compare the turnover on exchanges, based on the permanent account number, with the reported figures in the respective ITRs.
Accordingly, tax authorities will process the data and take up those matters for further scrutiny.
Eventually, the portal will integrate the database from depositories, clearing corporations, and registrars with issue-and-share transfer agents and other intermediaries.
“The automatic exchange of information or real-time exchanges or even full integration of database has been under discussion.