Aadhaar Card Verification Online
June 15, 2018
Various Assessments under IT Law
Various Assessments Under Income Tax Law
June 22, 2018
annual information report

AIR- Annual Information Report

Last Update Date : October 05, 2018

annual information report

The government has been effective lately monitoring fraudulent financial activity very cautiously . Every ‘high valued transaction’ of both individuals and other entities are monitored by the government and under section 285BA every specified individual has to provide data in the the Annual Information Report (AIR). This guide explores AIR in detail.

What is Annual Information Report?

AIR stands for Annual Information Report that contains information about all high-value transactions that is required to be reported under section 285BA by the ‘specified person’ for ‘specified transactions’ during a F.Y. With the help of this statement, the tax authorities will collect the information on certain prescribed transactions. This statement of financial transactions contains details of transactions, reportable account maintained/registered/recorded by them during the year. In this manner the income tax department can keep a track of high valued transactions.

Who is Required to Report?

Following are the persons who are required to furnish statement of financial transactions or reportable accounts registered/recorded/maintained by them in a F.Y.:

  1. an assessee;
  2. the prescribed person in the case of an office of Government;
  3. a local authority or other public body or association;
  4. the Registrar or Sub-Registrar appointed under the Registration Act, 1908;
  5. the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988;
  6. the Post Master General of the Indian Post Office Act, 1898;
  7. the Collector of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013;
  8. the recognised stock exchange referred to the Securities Contracts (Regulation) Act, 1956;
    1. an officer of the Reserve Bank of India, under Reserve Bank of India Act, 1934;
    2. a depository referred under the Depositories Act,1996; or
  9. a prescribed reporting financial institution;

Transactions to be Mentioned in AIR

Nature and Value of transactions Class of person
a)      Cash payments for purchase of bank drafts or pay orders or banker’s cheque, totallingRs. 10 Lakh.

b)      Cash payments for pre-paid instruments issued by RbI, amounting to Rs. 10 Lakh

c)      Cash deposit/withdrawal totalling, Rs. 50 Lakh or more in a F.Y.

Banks or a Co-operative bank.
Cash deposits in one or more accounts (other than current account), amounting to Rs. 10 Lakh of an individual  I. A Bank or co-operative bank

II.  Post Master General

Deposits amounting to Rs. 10 Lakhs or more in a F.Y.  I. A Bank or co-operative bank

II. Post Master General

III.  Nidhi Company

IV. Non-Banking Financial Company

Payments made by any person-

i.  Up to Rs. 1 Lakh or more in cash;

ii.  Rs. 10 Lakhs or more by any other mode.

Against credit card bills of one more issued cards in a F.Y.

A banking company or a cooperative bank or any other company or institution issuing credit card.
Receipt from any person of an amount aggregating to Rs. 10 Lakhs or more in a F.Y. for acquiring bonds or debentures (other than on renewal) issued by the company or individual. A company or institution issuing bonds or debentures.
Receipts of an amount for shares of shares by a company, amounting to Rs. 10 Lakhs. A company issuing shares.
Buy Back of shares from any person, totalling Rs. 10 Lakh or more in a F.Y. A company listed on a recognised stock exchange purchasing its own securities under Companies Act, 2013
Receipt of money for acquiring units of one or more schemes of mutual funds acquired by any any person adding upto to Rs. 10 Lakhs or more in a F.Y. A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund.
Receipt for sale of foreign currency involving credit of such currency into a foreign exchange card or expense in such currency through a debit card or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to Rs. 10 Lakhs or more during a financial year by any individual. Authorised person under Foreign Exchange Management.
Immovable property bought or sold by any person of an amount of Rs. 30 Lakhs or more or valued by stamp valuation authority at Rs. 30 Lakhs or more. Inspector-General or Registrar or Sub-Registrar
Cash payment for sale of goods or services(other than mentioned in above 1-10) made by any person of Rs. 2 Lakhs Any person who is liable for audit u/s 44AB.
Cash deposits made in the interval of 9th November to 30th December 2016 which sums up to-

(i) Rs. 12,50,000 or more, in one or more current account of a person;

(ii) Rs. 2,50,000 or more, in one or more accounts of a person (other than current account);

i. A banking Company

ii. Post Master General

Deposits between  April 1st 2016to November 9th, 2016 in respect of accounts that are reportable under S.I. No.12 because cash deposited in this account

between  November 9th 2016 to  December 30th 2016 amounts to-

(i) Rs. 12,50,000 or more, in one or more current account of a person;

(ii)Rs. 2,50,000 or more, in one or more accounts of a person;

i. A banking company;

ii.  Post Master General

Who Provides Transaction Details to the Income Tax Department?

Under the section 285BA and rule 114E some of the service providers must furnish specified transactions recorded by them in a Financial Year. Service providers like:

  1. Banks: they provide specified transactions where in aggregate, deposits made exceeds Rs. 10 lakhs in any saving account of a person.
  2. Banks: If any person exceeds Rs. 2 Lakhs in a year for payment of Credit Card.
  3. Mutual Fund: Investment by an individual exceeding Rs. 2 Lakhs in a year.
  4. Company or Institution: for e.g.: Bajaj Finance. Investment from any individual exceeding Rs. 10Lakhs for acquiring bonds and debentures.
  5. Company: If any individual while acquiring shares exceeds payment of Rs. 1 lakh to the respective company.
  6. Sub-Registrar: If any person purchase or sell immovable property up to Rs 30 Lakhs or more.
  7. RBI: Any person investing more than Rs. 10 Lakhs or more .

Under What Circumstances AIR will not be Accepted?

The AIR will not be accepted under following conditions:

  • Labels should have filer’s name, TAN, PAN, Form no. and Financial Year.
  • When computer media is not submitted or found to be corrupted or contains virus or not readable.
  • When more than one computer is used to furnish one AIR.
  • When Form 61A (Part A) not submitted along with AIR file.
  • If Form 61A (Part A) is not duly signed or verified.
  • Overwriting on Form 61A (Part A) not approved by person who has signed the same.
  • If AIR file is compressed using any other compression utilities than Winzip 8.1 or ZipItFast 3.0 or higher version.
  • If the return file provided on Computer media is not generated by the AIR FVU.
  • Mismatch of PAN/TAN mentioned in Form 61A with AIR file.
  • Mismatch of name of filer in Form 61A with AIR file (with no documents in support for form 61A)
  • Mismatch of total in Form 61A with the total of SAM (Statement Acceptance Module) at the TIN Facilitation Centre.
  • When the Financial Year is not valid.

Consequences of not Furnishing AIR

Penalties will be levied for not furnishing the statement of all financial transactions u/s 271FA. The penalty is Rs. 500 per day of default. However, section 285BA (5) which allows the tax authorities to issue a notice to the person asking him to file the statement within a period of 30 days from the date of receiving the notice..   If he/she fails to file the statement within the allotted time then he/she will face penalty of Rs. 1,000 per day after the date mentioned in notice for furnishing the statements.

Frequently Asked Questions?

  1. Who is authorized to receive AIR?
    National Securities Depository Limited(NSDL) is authorized by CBDT (Central Board of Direct Taxes) to receive AIR. NSDL accepts AIR from all over the country in front offices called TIN Facilitation Centres (TIN-FCs) and online through web-based facility. So, AIR is collected by NSDL and forwarded to the Income Tax Department.
  2. How will transactions of joint parties be provided in AIR?
    With respect to transactions related to joint parties

    • Provide separate line item for each party involved in the transaction and mention each transaction separately relating to that party if shares of each party are known;
    • Give particular of all the parties involved in joint parties as separate line items and mention the respective transaction against the first named party alone if the shares of the parties involved in joint transaction are undefined.
  3. Should an entity which is required to file AIR, file a single AIR for the whole organization or can it file separate AIR for each of its branch/regional office?
    An entity/enterprise which is required to file an AIR will file only a single report in behalf of the whole organization.
  4. What is File Validation Utility (FVU)?
    FVU is a programme created by NSDL to verify the format of AIR as in how correct it is? It generates error if any, related to the input format. The error file will display the error code and error description and details about the same. After you have corrected the mistakes you can again pass the file from FVU to achieve an error free AIR file.
    If there is no error in AIR it generates “File Validation Successful” will be displayed.

How H&R Block India Can Help You?

To ensure all the necessary documents are filed properly along with your annual tax returns, enlist the aid of the tax experts at H&R Block India.

  • Share: 

Still Have Questions?