Annual Information Return – Overview

Annual Information Return (AIR)

As per the amendment to Section 285BA of the Income Tax Act, 1961, specified entities (Filers) are required to furnish an Annual Information Return (AIR) in respect of specified financial transactions (high value financial transactions) registered / recorded by them during the financial year (beginning on or after April 1, 2004) to the specified income tax authority, i.e. Director General of Income Tax (Systems).

Due Date for AIR

The due date of filing of the return is the 31st of August of the following year.  Penalty of rupees one hundred per day is leviable for delay in furnishing of AIR beyond the due date. 

Transactions to be reported in AIR

The ‘specified persons’ and the ‘specified transactions’ are listed in Rule 114E of the Income-tax Rules, 1962. Briefly, these are as under:

a) A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act)

Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank.

b) A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card.

Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year.

c) 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 two lakh rupees or more for acquiring units of that Fund.

d) A company or institution issuing bonds or debentures

Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the company or institution.

e) A company issuing shares through a public or rights issue.

Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the company.

f) Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908.

Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.

g) A person being an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934, who is duly authorized by the Reserve Bank of India in this behalf.

Receipt from any person of an amount or amounts aggregating to five lakh rupees ormore in a year for bonds issued by the Reserve Bank of India.

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