WIDENING OF TAX BASE: ANNUAL INFORMATION RETURN

 ANNUAL INFORMATION RETURN (AIR)

For developing automatic flow of information regarding material financial transactions entered into by a taxpayer with other persons Section 285BA has been inserted by Finance Act 2003.

According to which AIR of 'High Value Financial  Transactions' is required to be furnished by specified persons in respect of specified transactions registered or recorded by them during a financial year. The specified persons and the specified transaction are listed in Rule 114 E of the Income Tax Rules 1962. Briefly these are as under:

Sr. No.	Person required to file AIR	Nature and value of transaction
1	Banking company	Cash deposit aggregating to ten lakh rupees or more in a year in any saving account.
2.	Any company or institution issuing credit card	Payment made in respect of a credit card aggregating to two lakh rupees or more in a year.
3.	Trustee or manager of mutual fund	Receipt from any person an amount of  2 lakh rupees or more for acquiring units.
4.	Company issuing bonds or debentures	Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures.
5.	Company issuing shares	Receipts from any person of an amount of one lakh rupees or more for acquiring shares.
6.	Registrar appointed under Registration Act	Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.
7.	Authorised officer of RBI	Receipt from any person of an amount of five lakh rupees or more in a year for bonds issued by the RBI.

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