New Delhi: Pre-filled income tax returns will leverage technology, encourage compliance and make the process of filing declaration less cumbersome for a common person, the Central Board of Direct Taxes (CBDT) said on Saturday.
These pre-filled tax returns will contain details such as salary income, capital gains from securities, bank interests, tax deductions, dividends and the like.
"We are giving pre-filled return forms to the salaried class. We will also give faceless assessment to taxpayers and they will not have to go to income tax offices," said CBDT Chairman P C Mody in an interview to ANI.
Mody said the CBDT will obtain sources of income for all salaried employees from third parties. "If a person is getting salary, then we are getting information from his or her employer, from banks on interest income and other sources. We compile all the information at one place. So the government is working as an accountant for every taxpayer."
Mody said taxpayers will also be able to make changes in the pre-filled forms.
The CBDT Chairman said he is confident of achieving the Rs 13.35 lakh crore target for direct tax collections in 2019-20. In the previous fiscal, direct tax collections totalled Rs 11.37 lakh crore.
"If we see the trend of past three years, we are seeing the revenue collection growth of 15 to 18 per cent," said Mody.
He said there could be a revenue loss of Rs 4,000 crore as the Finance Minister has decided to cut corporate tax rate for companies with annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent earlier. "But will get Rs 11,000 crore to 12,000 crore from additional surcharge levied on high net worth individuals," said Mody.
Startups registered with the Department for Promotion of Industry and Internal Trade who have given declaration will be not scrutinised. "There will be a dedicated assessing officer for existing legacy cases. So startup issues will be addressed and angel tax issues will be resolved."
On the upcoming Direct Tax Code, Mody said the taskforce working on it should be able to finalise it by July 31. The new rules will simplify norms and processes further, he said.