In view of the proposal made by Hon’ble Finance Minister- Nirmala Sitharaman in her Budget 2021-22 speech regarding the further ease of filing of returns via enabling the mechanism for pre-fill of data in the ITR in relation to details of capital gains from listed securities, dividend income, and interest from banks, post office, etc., the amendment has been made in Sub Rule 114E of the Income Tax Rules, 1962 (hereinafter referred to as Rules) vide Notification No. 16/2021 dated 12-03-2021.

Sub Rule (5A) has been inserted in Rule 114E of the Rules which requires furnishing of the details in relation to capital gain on transfer of Listed Securities or Units of Mutual Funds, Dividend Income and Interest Income by Recognised Stock Exchange, Depositories, Recognised Clearing Corporation, Registrars, a Company, banking company, Post Master General and Non-Banking Financial Companies as described therein the Table in the said Sub Rule (5A).

Frequency and manner of such reporting shall be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems) with the approval of the Board.

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