Be sure to make these disclosures in your Income Tax Return 1 April onward

• Follow

With the beginning of a new financial year, the way you file your Income Tax Return (ITR) is set to change noticeably; primarily in terms of disclosures. Here’s a look at some of the most prominent changes:

— It will be mandatory for taxpayers to disclose information regarding stock trading, mutual fund transactions, income from dividends and post office deposits etc. while filing ITR. This information will also be available on Form 26AS. Besides, the tax department will also fetch this from your brokerage account, making it impossible to conceal the source of income and information about investments, which was a common practice earlier.

— To make the process of filing ITR seamless, the new ITR forms will come pre-filled with taxpayer’s information including capital gains from listed shares, dividend income, post office and interest income from savings bank account.

— Interest earned on deposits in saving schemes has also been included in the Special Fund Transfer (SFT), as per a CBDT circular dated 12 March 2021. It is now the responsibility of the financial institutions to share information regarding your earnings or if your transactions exceed certain limit with the I-T department.

— As per Section 114E of the Income Tax Act, if an investor books profit by selling mutual funds, the fund house will send his account information to the taxman.