Prime Minister Narendra Modi has launched a “platform for transparent taxation—honouring the honest" to strengthen the government’s direct tax reforms. The Income Tax department has introduced in the reforms, the facility of pre-filled forms with the intention of making the process of filing tax forms easier.
Linking taxpayers' Aadhaar card, PAN card and bank accounts enables the tax department to pre-fill the forms for taxpayers. The details such as bank interest, salaries and tax deductions are automatically filled in the form which can be submitted once approved by the tax filer. With the linking, the department has every single details of all financial transactions performed by the individuals and firms reducing tax evasion.
To be noted, few of these were included in 2019 form, and for salaried individuals, this move means no need to file an income tax return. Finance Minister Nirmala Sitharaman on Wednesday said, "In order to make tax compliance more convenient, pre-filled Income tax Returns (ITR) have been provided to individual taxpayers. The ITR form now contains pre-filled details of certain incomes such as salary income". With the usage of pre-filled form, chances of errors during filing get reduced substantially. Every communication from the IT department, related to assessment, appeals, investigation, penalty, and rectification, etc. will generate a computer-generated unique document identification number (DIN).
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