Every assesses who make some high value transactions, such as investment in property & mutual funds or incur  large amounts expenses during the financial year, are required to furnish an Annual Information Return (AIR) to the income tax authority.

All the high value transactions are automatically reported to the income tax department by financial institutions, banks, mutual funds and other authorities through AIR and the department also keeps track of your AIR transaction through your PAN. So, you should disclose all information relating to your income/expenses as the income tax department is already aware of all such transactions.

The AIR transactions which are required to be reported on your return are following:

• Cash deposits of Rs. 10 lacs and above.
• Credit Card bills of Rs. 2 lacs and above.
• Investment in Mutual Fund of Rs. 2 lacs and above.
• Investment in Bonds/ Debentures of Rs. 5 lacs and above.
• Investment in Shares of a company Rs. 2 lacs and above.
• Investment in Immovable property of Rs. 30 lacs and above.
• Sale of Immovable property for Rs. 30 lacs and above.
• Investment in RBI Bonds of Rs. 5 lacs and above.

It is usually observed that the chances of scrutiny increase if AIR transactions are there on the return. So, you should be prepared for the same and should keep all bank statements, sale/purchase records and all other documents relating to such transactions and keep Cash Flow Chart ready too.

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