Now the information about the capital gains, dividend income and interest received from the bank and post office from the security listed in the income tax forms will already be filled.
The financial year 2022 has started from April 1 and many tax related rules have been changed in this financial year. Presenting the Budget 2021, Finance Minister Nirmala Sitharaman said that now it will be easier to file the returns by yourself because all the information related to income will come pre-filled. Till now taxpayers had to calculate the tax by calculating capital gains, interest income, dividend income by themselves.
While presenting the budget for the financial year 2021-22, Finance Minister Nirmala Sitharaman had said that the information listed on the income tax forms will already fill the information on capital gains, dividend income and interest from the bank and post office. This will make the process of filing returns for people easier. Whether you tell the income tax department or not, he will have complete information about your income. On March 12, a notification was issued by the Income Tax Department, according to which the related parties, including the stock exchange, depository, will have to share complete information about the capital gains through the listed security. This includes earning through mutual funds.
Under the new rule, the IT department will have to share its full information on issuing dividend to the company. Apart from this, the IT department will also have to share the information of interest earned by banks, post office and financial institution. This rule has been implemented with immediate effect. In such a situation, it is possible that this rule will also be applicable for the financial year 2020-21. The tax department will also share all such information from taxpayers.
If invested in the stock market and mutual funds, if redeemed within 12 years, it is called short-term capital gains. It attracts 15 per cent tax. After 12 months, long term capital gains tax is levied and it is 10 per cent. Up to 1 lakh long term capital gains are tax free. This includes earning from mutual funds.
At present, TDS is deducted on dividend income at the rate of 10 per cent. This is deducted by mutual fund companies and companies with purchased shares. After deducting TDS, the total amount gets added to your total income and tax has to be paid according to the tax slab. TDS is not deducted if more than 5000 dividend is received. Now information about capital gains, dividend income and interest income will be pre-filled. Till now only information about salary income, TDS and tax payment used to be pre-loaded.