RETURN OF INCOME. The following persons shall furnish a return of income on or before the due date prescribed.

Transcription

1 RETURN OF INCOME 22.1 Mandatory Filing of return of income Sec 139(1): The following persons shall furnish a return of income on or before the due date prescribed. Company Partnership Firm including LLP Person other than a company or a firm if: 1. Total income or 2. Total income of any other person in respect of which he is assessable under the Act exceeds the maximum not chargeable to tax (for example : representative assessee, deemed assessee, agent of a non resident etc) Any person being a resident (other than not ordinarily resident), not required to file his return, to file a return of income, if he has any assets located or signing authority in any account, outside India, in the prescribed manner. The return of income shall be verified in the prescribed in the form and manner. Sec 139(1) applies to all persons- whether they are residents or non residents Pannalal Nandlal Bhandari vs CIT Supreme Court [1961] ATR 446. In the case of persons other than a company or firm, total income shall mean income before the exemptions under 10A/10AA/10B/10BA and deductions under Chapter VI A (80C to 80U). Voluntary filing of return of income is permissible even if it is not required by law Companies having only exempted income (agricultural companies) or are loss making would still be required to file returns. A person, being an individual or HUF, is not required to file return of income where the non agricultural income is less than the basic exemption limit Circular No 10/2003 dtd 24th December The following persons are also required to file their return of income: - A public company which has been incorporated but yet to receive its commencement of business certificate - A defunct company which is not yet liquidated - A foreign company having business connection in India irrespective of whether it has any income or not Due date for filing return of income: Assessee Company (other than those covered u/s 92E) Non corporate assessees whose accounts are required to be audited under Income tax Act or any other law Working partner of a firm whose accounts are required to be Due date 30th September of the assessment year

2 Audited Any assesee who is required to furnish a report u/s 92E(transfer pricing cases) Any other assessee 30th November of the assessment year 31st July of the assessment year The Central Government may, by notification in the Official Gazette, exempt any class or classes of persons from the requirement of furnishing a return of income having regard to such conditions as may be specified in that notification Sec 139(1C) Every notification issued u/s 139(1C) shall be laid before the Parliament Sec 296 Accordingly the Central Government has notified that the following individuals need not file their return of income Notification No 9/2012 dated : whose total income does not exceed Rs 5 lakhs and consists of only: - Salaries - Income from other sources, by way of interest from a savings account in a bank, not exceeding Rs 10,000 The above exemption shall apply provided, the individual 1. has reported to his employer his PAN 2. has reported to his employer, the above mentioned interest income and the employer has deducted the tax thereon; 3. has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government; 4. has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government; 5. has no claim of refund of taxes due to him for the income of the assessment year; and 6. has received salary from only one employer for the assessment year. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year. A working partner means a partner who is actively engaged in the working of the firm and is drawing remuneration from the firm. The due date of filing returns for a non working partner shall be 31st July irrespective of whether the firm is subject to audit or not. Where the last date of filing returns is a holiday, the income tax return can be filed on the next working day- Circular No 639 dtd Assessees liable for fringe benefit tax shall be required to file a consolidated return of income and return of fringe benefits.

3 22.3 Consequences for non compliance with 139(1): - Penalty u/s Rs 5000 shall be leviable if the assessee fails to furnish the return of income before the end of the relevant assessment year - Simple Interest u/s 234A shall 1% p.m. or part of the month where: Return of income is furnished after the due date Return of income is not furnished by the assessee - Prosecution u/s 276CC for willful failure to furnish return of income - Penalty u/s 271B for failure to furnish audit report before the due date u/s 139(1)- Rs 1.5 lac or 1.5% of turnover whichever is less. According to sec 273B, no penalty shall be levied on the assessee u/s 271F, if it is proved that there was reasonable cause for the failure to file the return of income before the relevant assessment year Relevant forms for filing return of income Rule 12 S.No Person Situation Form 1 Individual - Income from Salaries - Income from family pension - Income from one ITR 1 SAHAJ house property (excluding loss brought forward from previous years) - Interest income 2 Individual and HUF - Other than S.No 1 ITR 2 - Not having Income from Business or Profession 3 Individual and HUF - Assessee is a partner ITR 3 in a firm - Assessee does not carry on business or profession under any proprietorship. 4 Individual and HUF - Other than S.No 1,2 and 3 - Has income from ITR- 4 proprietary business or Profession

4 5 Individual and HUF Firms other than LLP - Presumptive Taxation u/s 44 AD/ AE ITR- 4S SUGAM 6 Firms, AoP and BoI - All cases ITR- 5 7 Company - Assessee does not claim exemption u/s 11 ITR- 6 8 Assessee required to file u/s 139(4A)/ (4B)/(4C)/(4D) - 139(4A): Return of income: Charitable trusts and institutions - 139(4B): Return of income : Political Party - 139(4C): Return of income : Specified institutions - 139(4D): Return of income: Institutions engaged in scientific or statistical or social research. 9 Any person - Electronic acknowledgement for e filing of Returns ITR -7 ITR V Return of income in form ITR 1 to 6 are annexure less ie no attachment needs to be filed along with the return of income No statement for computation of total income or tax liability need to be filed along with the returns TDS information should be filed up in the schedules to the return however no certificate of TDS need to be attached. Audit report for Sec 44AB cases also need not be annexed with the return of income. No penalty u/s 271B shall be imposed if the assessee does not furnish the audit report within the due date. However penalty shall be imposed if the assessee fails to obtain the audit report within the due date. Report of a Chartered Accountant u/s 92E (transfer pricing) in Form 3CEB shall be required to be filed along with the return of income. Actual date of filing returns where returns are filed electronically: 1. Where returns are digitally signed: The date of e filing 2. Where returns are not digitally signed: (i) Where ITR V is submitted within 120 days of e filing: The date of e filing (ii) Where ITR V is submitted beyond 120 days of e filing: The date of submission of ITR V Assessees required to file ITR- 7 are required to file the returns in paper form and shall enclose all documents, copy of accounts and audit report. Mandatory to sign with Digital Signature - all company assessees - individuals, firms and HUF subject to tax audit u/s 44AB Compulsory e Filing of returns Electronic filing shall be mandatory in the following cases: 1. Assessees required to file in form ITR 5 to whom Sec 44AB is applicable 2. Assessees required to file in form ITR 6 3. Assessees required to furnish ITR 4 and to whom provisions of Sec 44AB are applicable

5 4. Individul or HUF whose total income exceeds Rupees Ten Lakhs - Notification S.O. 626(E) dt Assessee, a firm, after uploading its return of income, received an electronically generated mail from the Income Tax Department acknowledging the e-filing of return. As per the Department s instructions, the Assessee remitted a copy of ITR-V duly signed through ordinary post. Due to improper delivery, the Assessee sent the above said form again. By impugned communication, the Assessee was informed that return filed electronically was treated as invalid. It was held that the impugned communication was to be set aside by permitting the Assessee to file a verification of return before Assessing Officer within a period of one week from the date of order Crawford Bayley & Co. vs. Union of India [2012] 246 CTR 459 (BOM.) Sec Assessee Form Provisions Due Date Penalty 139 Charitable (4A) trust or institution 139 (4B) Political Party ITR 7 Every person who is in receipt of the following income shall file a return if such income before claiming exemption u/s 11 to 12 exceeds the maximum amount not chargeable to tax: - Income from property held under trust or other legal obligations for charitable/ religious purposes. - Income by way of voluntary contributions ITR 7 The Chief Executive Officer of every political party before claiming exemption u/s 13A whose income exceeds the maximum - Where income exceeds basic exemption limit : 30th September - Where income does exceed basic exemption limit : 31st July not - Where exemption u/s 13A is claimed: 30th September - Where exemption u/s 13A is not Sec 272A(2): Rs 100 per day during which the failure continues. Since Sec 272A(2), provides for specific penalty, penalty u/s 271F shall apply in this case a Sec not Sec 271F: Fixed penalty of Rs 5000

6 139 (4C) 139 (4D) - Specified Institutions - Mutual Funds referred u/s 10(23) - Securitization trust referred u/s 10(23DA) - VCC or VCF referred u/s 10(23FB)- Amendment by Finance Act 2014, (w.e.f ) Specified Institutions amount not chargeable to tax shall file a return within the due date before claiming exemption u/s 10 ITR 7 - Research association u/s Sec 10(21). - News Agency u/s Sec 10(22B) - Specified association u/s 10(23A)/(23B)/ (23C) /(24) - Body or authority or Board or Trust or Commission specified u/s 10(46) Infrastructure debt fund referred u/s 10(47) - MF or Securitization trust or VCC or VCF without giving effect to the provisions of sec 10, exceeds the basic exemption limit ITR 7 Specified institutions engaged in scientific, social or statistical research which is not required to file return of income under any other section. claimed: 31st July - Where accounts are required to be audited: - 30th September - Where accounts are not required to be audited: - 31st July Sec 272A(2): Rs 100 per day during which the failure continues. Sec 272A(2) Rs 100 per day during which the failure continues. Since Sec 272A(2), provides for specific penalty, penalty u/s a Sec 271F shall not apply in this case. Sec 271F: Fixed penalty of Rs 5000

7 22.5 Filing of returns of employees by the employers on computer readable media- 139(1A) Every eligible employee who is in receipt if income under the head Salaries, May at his option, Furnish a return of income, in form 2D/3, to his eligible employer On or before the due date for filing Using a computer readable media through the Bulk Return Preparation Software. Such return shall be deemed to be a return filed u/s 139(1). Eligible employer means: - An employer who has atleast 50 employees whose income exceed the basic exemption limit and - Such employees have been allotted PAN Eligible employee means an employee: - Who is employed by an eligible employer and - Who is assessed to tax at Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Delhi, Gandhinagar, Hyderabad, Jaipur, Jabalpur, Kolkata, Mumbai, Nagpur, Pune and Thane Return may be filed on a specified computer readable media- Sec 139 (1B) Any eligible person who is required to furnish a return of income May, at his option, on or before the due date furnish a return of income for any previous year In accordance with such scheme specified by the Board and subject to such conditions as may be specified File the return in such form and manner through a computer readable media (including floppy, diskette, magnetic cartridge tape) as may be specified Such return filed shall be deemed to be a return u/s 139(1) Eligible person means: - Individuals not having income from business or profession - Who are assessed or assessable in specified cities

8 - Who have been allotted a valid PAN - Specified cities refer to Chennai, Kolkata, Mumbai, Delhi, Ahmedabad, Bangalore and Hyderabad Return of Loss- Sec 139(3) It is not mandatory to file a loss return except in the case of companies or firm However according to Sec 80, losses from business or profession and capital losses cannot be carried forward unless return of income for the relevant previous years have been filed on or before the due date Loss from house property, loss from specified business u/s 35AD and unabsorbed depreciation can be carried forward even if return of income is not filed or filed beyond the due date u/s 139(1). Sec 139(3) read with Sec 80, does not prohibit the set of losses of the current year while computing the total income even if the return is filed beyond the due date. Where the assessee has submitted a loss return in response to a notice u/s 142(1), such loss can be carried forward only to the extent of loss from house property and un absorbed depreciation. In the case of other losses like business etc, the same cannot be carried forward. Loss of the current previous year cannot be carried forward where the returns are filed late. However losses of earlier previous years can be carried forward, even if the current year returns are belated, provided the returns for the respective previous years have been filed within the due date Belated return- Sec 139(4) Where an assessee has filed his return of income after: - Due date u/s 139(1) - Time allowed under a notice issued by the Assessing Officer u/s 142(1) - S uch a return would be termed as a belated return and would be held valid for assessment purposes. A belated return has to be filed : - Within one year from the end of the relevant assessment year - Before the completion of assessment Whichever is earlier

9 Where the assessee is required to file a return of income u/s 139(1),return filed in response to a notice u/s 142(1) shall always be a belated return irrespective of whether it is filed within the time allowed under the notice. Only assessment u/s 144 (Best judgment assessment) is possible where no returns have been filed by the assessee. Therefore the term completion of assessment for the purposes of this section can refer to only Best judgment assessment u/s 144. Date of completion of assessment is relevant and not the date of service of notice Balchand vs ITO [1969] 72 ITR 197(SC). For example: For the previous year , if assessment was completed on and the order of assessment was served on the assessee on , return filed after shall not be a valid return. Return filed after cancellation of best judgment assessment is a valid return filed u/s 139(4) Ram Billas Kedar Nath v ITO [1963] 47 ITR 586 (All.) Misc Provisions: Power of Board to dispense with furnishing documents, etc., with the return Sec 139C. 1. The Board may make rules providing for a class or classes of persons who may not be required to furnish documents, statements, receipts, certificates, reports of audit or any other documents, which are otherwise required under any other provisions of this Act, except u/s 139D, except those documents which are required u/s 139D. The documents may be permitted to be furnished on demand to the Assessing Officer at the time of assessment. 2. Any rule made under the proviso to sub-section (9) of section 139 as it stood immediately before its omission by the Finance Act, 2007 shall be deemed to have been made under the provisions of this section. Filing of return in electronic form Sec 139D. The Board may make rules providing for (a) the class or classes of persons who shall be required to furnish the return in electronic form; (b) the form and the manner in which the return in electronic form may be furnished; (c) the documents, statements, receipts, certificates or audited reports which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand; (d) the computer resource or the electronic record to which the return in electronic form may be transmitted Revised Return- Sec 139(5) Where an assessee after furnishing return of income u/s 139(1) or in pursuance to a notice u/s 142(1) Discovers any omission or misstatement in the return filed He may furnish a revised return

10 Such return may be filed: 1. Within one year from the end of the relevant assessment year; or 2. Before the completion of assessment Whichever is earlier. A belated return filed u/s 139(4) cannot be revised Kumar Jagdish Chandra Sinha vs CIT [1996] 220 ITR 67 (SC) Return filed in response to a notice u/s 142(1) would be a return u/s 139(4) and cannot be revised. Where an assessee is not required to furnish u/s 139(1), then a return filed in response to a notice u/s 142(1) can be revised - CIT vs Kumar Jagadish Chandra Sinha [1982] 9 TAXMAN 256 (CAL) A revised can be further revised within the prescribed time limits CIT vs Dr. N.Shrivastava [1988] 170 ITR 556 (M.P.). Revised return substitutes the original return filed. Therefore if the assessee has filed the original return declaring income and subsequently filed a revised return declaring loss- such loss shall be allowed to be carried forward: Dhampur Sugar Mills Ltd vs CIT [1973] 90 ITR 236(All.). Where the original return has been filed within the due date declaring a loss and a revised return declaring a high loss has been filed subsequently- such higher loss shall be allowed to be carried forward : CIT vs Periyar District Co op Milk Producers Union Ltd [2004] 226 ITR 705 (MAD) For the purposes of this section, the term completion of assessment refers to completion of assessment u/s 143(3) and 144. Assessment u/s 143(1) cannot be considered as an assessment and thus a return can be revised even after an intimation u/s 143(1) has been served. Intimation u/s 143(1) cannot be treated as order of assessment and on basis of the said order the assessee cannot be denied his statutory right to file a revised return within the period of limitation S.R.Koshti vs CIT [2005] 276 ITR 165 (GUJ) A return filed u/s 139(3),(4A), (4B), (4C), (4D) can be revised u/s 139(5) A return can be revised even after receiving a notice u/s 143(2) / 144. However penalty for concealment of income u/s 271(1)(c) may be levied on the assessee. Revised return filed after detection of concealed income does not offer immunity from penalty levy- CIT vs Dr.A.Mohd Abdul Khadir [2003] 260 ITR 650 (MAD) Omission or misstatement in the original return must be bona fide for the purpose of filing a revised return. An application or letter to the Assessing officer cannot constitute a revised return- Gopaldas Parshottamdas vs CIT [1941] 9 ITR 130 (ALL) Defective return: Sec 139(9) (Not relevant after the introduction of annexure less returns) A return shall be considered as defective unless it has the following: Computation of total income together with relevant annexures and statements Statement showing the computation of tax payable Audit report u/s 44AB(wherever applicable) Proof of TDS, TCS, advance tax and self assessment tax paid Where regular books are maintained, the return shall be accompanied by copies of

11 1. Manufacturing and Trading account, Profit and Loss account or Income and Expenditure account 2. Balance Sheet 3. In the case of firm, sole proprietary concern, AoP and BoI, personal accounts of partners, proprietor and members respectively 4. In the case of individuals, their personal accounts in firm and AoP/BoI Where regular books are not maintained, a statement indicating: 1. Turnover/ gross receipts 2. Gross profit 3. Expenses 4. Net profit 5. Basis on which the above figures have been arrived 6. Balances of Sundry debtors and creditors, stock and cash balance Cost audit report where such audit is done during the previous year Note: The Board can dispense with any of the above requirements for a class or classes of persons The return of income shall be regarded as defective unless the tax together with interest, if any, payable in accordance with the provisions of section 140A has been paid on or before the date of furnishing of the return Amendment by Finance Act 2013, (w.e.f ) Signing and verification of a return Sec 140 Where an assessee is required to file returns u/s 139 or 115WD- the same shall be verified by the respective signatories as given below: Assessee Situation Verification by Individual Present in India Assessee Not in India Assessee or authorized Power agent Mentally incapacitated Person competent to act on his behalf or legal guardian Any other situation Authorized Power agent HUF Normal scenario Karta Karta not in India / mentally Any Adult member of the

12 Incapacitated family Company Normal scenario Managing Director Managing Director (MD) not in Any other Director India or there is no MD Company not resident in India Authorized Power agent Company in Liquidation Liquidator Company whose management Principal Officer appointed is for the Purpose taken over by Government Partnership Firm Normal scenario Managing / Designated Managing/Designated partner not able to sign or there is not managing partner Partner for LLPs Any other partner not being a minor partner Local authority In all cases Principal Officer Political party In all cases Chief Executive Officer AoP In all cases Any member or Principal Officer Any other person In all cases Assessee or any other authorized signatory With a view to enable the verification of returns either by a sign in manuscript or by any electronic mode, the return shall be verified by the persons specified therein.- Amendment by Finance Act 2014, (w.e.f ) - A return which is not signed and verified is an invalid return (not a defective return). It is therefore no return in the eyes of law Khialdas and Sons vs CIT [1997] 225 ITR 960 (MP). - A notice issued u/s 143(2) in response to an unsigned and unverified return does not validate such invalid return Electronic Instrument Company vs CIT [2001] 250 ITR 734 (Delhi). - Thumb impression is considered as one of the modes of signing according to General Clauses Act. Therefore a return with thumb impression is considered as a valid return CIT vs Kanhaiya Lal and Sons [2005] 273 ITR 425 (All.) Permanent Account Number (PAN) Sec 139A 1. Every person who has not been allotted a PAN shall, within such prescribed time, apply for a PAN in Form 49A to the Assessing Officer for the allotment of PAN in the following cases: a) Total income of the assessee or the total income of any other person in respect of which the assessee is assessable to tax exceeds the basic exemption limit b) Sales or gross receipts of the business or profession of the assessee exceeds Rs.5,00,000 during any previous year

13 c) Assessee is required to furnish a return u/s 139(4A) i.e return of trusts and charitable institutions d) Employer Assessees required to furnish a return offringe benefits u/s 115WD 2. The Assessing Officer, having regard to the nature of transactions as may be prescribed, may allot PAN to any other person by whom tax is payable 3. Any person not falling within the above 2 clauses, may also apply for a PAN Time limit for submitting application for allotment of PAN Situation In case of clause (1) (a) above In case of clause (1) (b) above In case of clause (1) (c) above Time limit for a making application. on or before 31st May of the assessment year in which such income is assessable on or before the end of that accounting year on or before the end of that relevant accounting year. Transactions for which PAN is required to be quoted: All documents and transactions with the Income Tax Dept like TDS/ TCS returns, challans for payment of tax/any other sum etc Sale/purchase of any immovable property valued at Rs 5 lacs or more Sale/purchase of any motor vehicle, other than two wheeler, which requires registration under the Motor Vehicles Act Time deposit exceeding Rs 50,000 with a bank Deposits exceeding Rs 50,000 in Post Office Savings Bank Contract for sale or purchase of securities exceeding Rs 1,00,000 Opening a bank account Application for installation of telephone including a cellular phone Payments to hotels/restaurants of bills exceeding Rs 25,000 at any time Payment in cash for purchase of a demand draft/pay order or banker s cheque for an amount exceeding aggregating Rs 50,000 or more during a single day Cash deposit aggregating Rs 50,000 or more with a bank during a single day Payment in cash in connection with any foreign travel of an amount exceeding Rs 25,000 at any one time Submission of returns through Tax Returns Preparers- Sec 139B w.e.f

14 This section has been introduced to enable specified classes of persons as notified by the Board, to prepare and file return of income through a tax return preparer as per the prescribed scheme This scheme is not applicable for companies, a person who is required to undergo audit under any other Act or audit u/s 44AB The scheme shall specify the manner in which Tax return preparers will assist the assesses and shall also affix their signature on such return Tax return preparer shall be an individual other than: - Officer of a scheduled bank in which the assessee has a current account; or - Legal practitioner; or - Chartered accountant Tax Returns Preparer Scheme 2006 Notification no 358/2006 dated Educational Qualification for tax return preparer: A graduate degree from a recognized Indian University in the field of: Business Administration Management Commerce Economics Law Mathematics Statistics - An eligible person, may at his option, furnish his return of income u/s 139 for an assessment year after having it prepared through a tax return preparer - A tax return preparer cannot furnish a return where: The assessee is subject to Sec 44AB Assessee is not a resident in India during the previous year Return of income is furnished in response to a notice u/s 142(1). - Tax return preparer shall furnish the return of income to the Assessing officer having jurisdiction over the assessee or to any other officer or agency as may be directed by the Resource Centre with the approval of the Board. - Incentive to Tax return preparer:

15 In case of New Assessees Commission Person paying commission - Return of 1st year 3% of tax paid subject to a maximum of Rs 1000 Resource Centre or Partner Organization - Return of 2nd year 2% of tax paid subject to a maximum of Rs Return of 3rd year 1% of tax paid subject to a maximum of Rs 1000 In case of old assesses Rs 250 per return Eligible person (assessee) Note: - In case of new assessees, the commission shall be paid by the Resource Center. The minimum commission payable is Rs 250 per return. Where there is a shortfall in commission as per the above rates, such shortfall shall be recovered by the tax return preparer from the eligible person (assessee) - Eligible person refers to an individual or HUF. Therefore tax return preparer can file returns only for an individual or HUF. - New assessee means an individual or HUF: who has either not furnished return of income in the past or who has not furnished return of income for 3 assessment years or more than 3 assessment years immediately preceding such assessment year. - A return of income required to be furnished in response to a notice u/s 142(1), 148 or 153A shall not be prepared or furnished through a Tax Return Preparer Self Assessment Sec 140A Applicability: The following assessees are required to complete self assessment of tax liability Assessees filing return of income u/s 139/ 142(1)/153A/158BC Computation of self assessment tax- Sec 140A Particulars Amount Compute Gross total income **** Less Deductions under Chapter VI A **** Total taxable income **** Compute tax on total income **** Less Rebate if any **** Tax payable after rebate **** Add Surcharge on the above tax after rebate **** Less Relief u/s 89(1) **** Tax and surcharge after rebate and relief **** Less TDS/TCS/Advance Tax / Relief u/s 90,90A,115JAA **** and 115JD Add Interest u/s 234A/234B/234C **** Self assessment tax payable ****

16 Note: Delay in payment of self assessment tax shall attract interest u/s 234A Failure to pay self assessment tax shall attract interest and penalty u/s 220 and 221 respectively. Obligation to furnish Annual information return Sec 285 BA read with Rule 114E: 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 financial year. The specified persons and the specified transactions are listed in Rule 114E of the Income-tax Rules, Briefly, these are as under: Sl. No. Class of person 1 A Banking company. 2 A banking company or any other company or institution issuing credit card. 3 A trustee of a Mutual Fund 4 A company or institution issuing bonds or debentures Nature and value of transaction Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank. 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. Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund. Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the company Clarifications vide Circular No.07/2005 dated 24thAug, 2005(4) Only the aggregate of all the cash deposits in the savings account of a person to be reported as one transaction and the date of the transaction is to be the last date of the financial year Only the aggregate of all the payments by a person to thecredit card company is required to be reported as one transaction and date of transaction is to be the last date of the financial year The amount actually receivedfrom the transacting party and not the amount relating to allotment is to be reported The amount actually received from the transacting party and not the amount relating to allotment is to be reported.

17 5 A company issuing shares through a public or rights issue. 6 Registrar or Sub-Registrar appointed under the Registration Act, A person being an officer of the Reserve Bank of India or who is duly authorized by the Reserve Bank of India or institution. Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the company. Purchase or sale by any person of immovable property valued at thirty lakh rupees or more 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. There may be situations where the transaction involves joint parties and value for one ormore parties is less than rupees thirty lakhs. In such situations, all such transactions are to be reported in respect of all the joint parties even though the value of transaction in the hands of one or more of the joint parties is less than the threshold limit The aggregate of all the receipts from a person is required to be reported as one transaction and the date of the transaction is to be mentioned as the last date of the financial year - Prescribed Form: The specified persons should prepare their AIR in From 61A (Part B) on computer readable media (i.e. CD or Floppy), supported by a duly signed verification and control chart in Form 61A (Part A) in paper format. - Prescribed Authority: AIR should be furnished to the Commissioner of Income-tax (Central Information Branch) i.e. CIT (CIB). CBDT has authorized NSDL to receive AIR through the TIN Facilitation Centers on behalf of CIT (CIB). AIR may also be filed online. - Due date for filing AIR: The due date of filing of the return is the 31st of August of the following year. - Defective AIR: Where the prescribed income-tax authority considers that the AIR furnished is defective, he may intimate the defect to the person who has furnished such return and give him an opportunity of rectifying the defect within a period of one month from the date of such intimation or within such further period which, on an application made in this behalf, the prescribed income-tax authority may permit.

18 If the defect is not rectified within the said period such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to furnish the annual information return - Notice for AIR: Where a person who is required to furnish an AIR has not furnished the same within the prescribed time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such return within a period not exceeding sixty days from the date of service of such notice and he shall furnish the annual information return within the time specified in the notice - Penalty for non filing of AIR - Sec 271FA: Where a person who is required to furnish an AIR fails to furnish such return within the time prescribed, the prescribed income-tax authority may levy a penalty of Rs 100 for every day during which the failure continues. However if the return is not furnished within the time specified in 285BA(5), then penalty will be at Rs 500 Amendment by Finance Act 2013, (w.e.f )