Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the a financial year. The due date of filing of the return is the 31st of August of the following year
The ‘specified persons’ and the ‘specified transactions’ are listed in Rule 114E of the Income-tax Rules, 1962. Briefly, these are as under:
Class of person required to file AIR
Nature and value of transaction
Cash deposits aggregating to ten lakh rupees or more in a year in any savings account
Any company or institution issuing credit card.
Payments made in respect of a credit card aggregating to two lakh rupees or more in the year.
Trustee or authorized manger of Mutual Fund
Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund.
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.
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.
Registrar or Sub-Registrar
Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.
Authorised officer of the Reserve Bank of India,
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.
Based on these details as obtained by Income tax department will call the individual in question to explain the source of such income in comparison with Income tax return filed.