Annual Information Return (“the Return”) is a return introduced with an intention to cover the specified financial transaction of any person in the return of income. A person shall be required to furnish the return u/s 285BA of the Income Tax Act, 1961 (“the Act”) in respect of specified transaction recorded on or after 1^st day of April 2004. The Act covers individual assessee or other specified persons who are required to comply with this provision. Transaction that is covered under the provision

• Transaction of purchase, sale or exchange of goods or property or right or interest in a property.
• Transaction for rendering any service.
• Transaction under a works contract.
• Transaction by way of an investment made or expenditure incurred.
• Transaction for taking or accepting any loan or deposit.

The above transactions are covered only if the value of the transaction during a financial year exceeds Rs. 50,000 or such higher sum as may be prescribed. Persons includes an income tax assessee, any prescribed person of the government office, a local authority or other public body or association, the registering authority empowered to register motor vehicles, the post master general, the collector under the Land Acquisition Act, a recognised stock exchange, an officer of the Reserve Bank of India, a depository under the Depositories Act. An individual assessee shall require furnishing the details of specified financial transactions in their Income Tax Return.

Conditions for filing the return

• If aggregate of cash deposited in any saving bank account is Rs. 10 lacs or more,
• If payment made against any bill by credit card is Rs. 2 lacs or more,
• If investment in mutual fund is Rs. 2 lacs or more,
• If investment in bond or debentures is Rs. 5 lacs or more,
• If investment in shares is Rs. 1 lac or more,
• If purchase or sale of immovable property valued at Rs. 30 lacs or more,
• If investment in bonds issued by Reserve Bank of India is Rs. 5 lacs or more.

If a person fails to furnish the return on time, it may attract a penal provision, a sum of Rs. 100 for every day during which the failure continues. If the information filed by the assessee in the return does not match with the actual information with the concerned authority then notice may be issued by the prescribed authority u/s 133(6) calling for the information. We at Taxmantra.com have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away.  We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Please join us now in pursuit of simplifying individual taxation! Alok Patnia Founder and Director at Taxmantra.com