What is AIR Return?
AIR (Annual Information Return) of “high-value financial transactions” is advised to be furnished under Section 285BA of the Income Tax Act, 1961. Annual Information Return is required to be furnished by some ‘Specified Persons’ recorded or registered by them during the financial year.
Who is eligible to file AIR Return?
These are persons liable to file Annual Information Return under Section 285BA
1. Any Person being:
- The person being an assessee. (or)
- The designated person in the case of an office of Government. (or)
- An Association or local authority or other public bodies. (or)
- The Registrar or Sub-Registrar appointed under Section 6 of the Registration Act, 1908 (16 of 1908). (or)
- The registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988). (or)
- The Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). (or)
- The Collector referred to in clause (c) of section 3 of the Land Acquisition Act, 1894 (1 of 1894). (or)
- The recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). (or)
- An officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934). (or)
- A depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996).
2. The Annual Information Return referred to in sub-section (1) shall be furnished within the prescribed time after the end of such financial year, in such form and manner (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any computer readable media) as may be prescribed.
3. For the purposes of sub-section (1), ‘Specified Financial Transaction’ means any
- The Transaction of Purchase, Sale or Exchange of Goods or Property or Right or Interest in a property. (or)
- A transaction for rendering any service. (or)
- The transaction under a works contract. (or)
- A Transaction by way of an investment made or expenditure incurred. (or)
- The Transaction for taking or accepting any loan or deposit which may be prescribed.
Who is required to furnish Annual Information Return?
- The Annual Information Return required to be furnished under sub-section (1) of section 285BA shall be furnished in Form No. 61A.
- The return referred to in sub-rule (1) shall be furnished by every person mentioned in column (2) of the Table below.
- iI respect of all transactions of nature and value specified in the corresponding entry in column (3) of the Table, which are registered or recorded by him during a financial year beginning on or after the 1st day of April 2004:
|S. No. (1)||Class of Person(2)||Nature and Value of transaction(3)|
|1.||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|
|2.||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 a 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.|
|3.||The trustee may duly authorise a trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as in this behalf.||Receipt from any person of an amount of two lakh rupees 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 five lakh rupees or more for acquiring bonds or debentures issued by the Company or institution.|
|5.||A Company issuing shares through public or rights issue.||Receipt from any person of an amount of one lakh rupees 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 thirty lakh rupees or more.|
|7.||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 authorised by the Reserve Bank of India in this behalf.||Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India.|
What is the Due Date For Filing the AIR Return?
The due date for filing of the return is on 31st August of the following year. The ‘specified persons’ and the ‘Specified Transactions’ are listed in Rule 114E of the Income-tax Rules, 1962.
Click on the link below for Annual Information Return Form