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 new system will match the data disclosed by an assessee with the data fetched from stock exchanges, using artificial intelligence, said two officials in the know. The portal will automatically compare the turnover on exchanges, based on the permanent account number, with the reported figures in the respective Income tax returns (ITRs).
This will help detect and red-flag such matters, particularly those related to non-filers of ITR. Accordingly, tax authorities will process the data and take up those matters for further scrutiny.
“Such an integration will help the department match data on a real-time basis, rather than wait for exchanges and other participants to file a statement of financial transactions (SFT),” said one of the two officials quoted earlier.
However, earlier, tax authorities used to seek information from the Securities and Exchange Board of India (Sebi) on selected cases. In the case of individuals, only suspicious transactions used to be taken up.
Last year, the I-T department had signed a data-sharing agreement with Sebi to access details of transactions by traders, particularly those red-flagged by the regulator. The department aims to achieve this integration this fiscal year.
Knowledge Source:
Due Dates for Filing of Income-Tax Returns and Various Reports of Audit Extended for AY 21-22