Role of Reporting Entities to Income Tax Department

Legal Compliances
3

Hey @Learner1,

The reporting entities are required to report transactions like:

  • Sale, purchase, or exchange of goods, right, property, or interest in any property.
  • Works contract.
  • Providing services.
  • Any investment made or expenditure incurred.
  • Accepting any deposit or taking any loan.

Specific to trading, below is the list of transactions and their reporting entities.

Capital gains on transfer of listed securities or units of Mutual Funds: Recognised Stock Exchange,
Depository as defined in section 2(1)(e) of Depositories Act, 1996, Recognised Clearing Corporation,
Registrar to an issue and share transfer agent registered under section 12(1) of the SEBI Act, 1992.
Dividend income: The company issuing dividend.
Interest income: A banking company or a Co-op. Bank or post office.

Hope this clarifies!

1 Like