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ANNUAL INFORMATION RETURN
Objective
Income Tax authorities want to keep an eye over high value transactions undertaken by tax payer. This leads to emergence of concept “Statement of Financial Transactions or Reportable account” also Known as “Annual Information Return”. With the help of the statement the tax authorities will collect information on certain prescribed high value transactions undertaken by a person during the year.
As per section 285BA (read with rule 114E) of Income Tax Act, 1961 specified entities are required to furnish a statement of financial transaction or reportable account in respect of specified financial transactions or any reportable account registered/recorded/maintained by them during the financial year to the income-tax authority or such other prescribed authority.
Provision
Rule 114E deals with the provision of Annual Information return and has laid down list of specified persons (mentioned in column 2) who shall furnish AIR statement in “FORM No. 61A” in respect of all transactions of the nature and value as been detailed in column 3, which are registered or recorded by them.
| Class of Person | Nature and Value of Transaction | |
| 1. | A Banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act). | Cash deposits aggregating to Rs. 10 Lakhs or more in a year in any savings account of a person maintained in that bank |
| 2. | Persons mentioned above including any other company or institutions issuing credit card | Payments made by any person in respect of a credit card bill issued to that person, aggregating to Rs. 2 Lakh or more in the year |
| 3. | A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. | Receipt from any person of an amount of Rs. 2 Lakh or more for acquiring units of that Fund. |
| 4. | A company or institution issuing bonds or debentures. | Receipt from any person of an amount of Rs. 5 lakh or more for acquiring bonds or debentures issued by the company or institution. |
| 5. | A company issuing shares through a public or rights issue. | Receipt from any person of an amount of Rs. 1 lakh or more for acquiring shares issued by the company. |
| 6. | Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908. | Purchase or sale by any person of immovable property valued at Rs. 30 Lakh or more. |
| 7. | A person being an officer of the Reserve Bank of India, who is duly authorized by the Reserve Bank of India in this behalf | Receipt from any person of an amount or amounts aggregating to Rs. 5 Lakh or more in a year for bonds issued by the Reserve Bank of India |
The return shall be furnished on or before 31st August, immediately following the financial year in which the transaction is registered or recorded.
Annual Information Return
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