What is Annual Information Return (AIR)?
As per the amendment to Section 285BA of the Income Tax Act, 1961, specified entities (Filers) are required to furnish an Annual Information Return (AIR) in respect of specified financial transactions registered/recorded by them during the financial year (beginning on or after April 1, 2004) to the income tax authority or such other prescribed authority.
Who is required to furnish AIR?
As per the amended Rule 114E of the Income Tax Rules, 1962, the Annual Information Return should be furnished by every person mentioned in column (2) of the Table below in respect of all transactions of the nature and value specified in the corresponding entry in column (3) of the said Table, which are registered or recorded by him during a financial year beginning on or after April 1, 2004:
|Class of person(2)||Nature and value of transaction(3)|
|1||A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).||Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank.|
|2||A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card.||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.|
|3||A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf.||Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund.|
|4||A 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.|
|5||A 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.|
|6||Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908.||Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.|
|7||A person being an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934, who is duly authorized by the Reserve Bank of India in this behalf.||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.|
Who is an Annual Information Return – Administrator?
CBDT has appointed the Director General of Income Tax (Systems) as ‘Annual Information Return – Administrator’ for the purpose of administration of Annual Information Return Scheme.
Should an entity who 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 who is required to file AIR is required to file one single AIR for the whole organization.
Who is authorized to receive AIR?
CBDT has authorized National Securities Depository Limited (NSDL) to receive AIR. NSDL receives the AIRs through its country-wide network of front offices called TIN Facilitation Centres (TIN-FCs) and on-line through web-based facility. The data received by TIN-FCs and data received on-line is collated by NSDL and disseminated to the Income Tax Department.
How can I prepare AIR in the electronic/computerized form?
You can prepare AIR using in-house facilities or any other third party software or NSDL AIR Preparation Utility, which is freely downloadable from http://www.tin-nsdl.com/airdownloads.asp
What are the forms used for preparing AIR?
AIR should be furnished vide Form 61A in the digitized form on computer readable media (i.e. CD/floppy), supported by a duly signed verification and control chart in Form 61A (Part A) in paper format.
What is the manner in which AIR is to be furnished?
AIR should be furnished in electronic form by all categories of entities required to furnish AIR. Furnishing of AIR in physical form is not permitted.
What is Folio Number to be quoted in AIR?
The Folio Number to be quoted is the TAN of the organization. In case the filer is a non- government entity, the folio number will be the TAN of the principal office of the entity.
Is it mandatory to quote TAN in AIR?
All filers are required to obtain TAN and quote the same in the column of ‘Folio No.’ in both Part A and Part B of Form no. 61A.
How to apply for TAN?
The application in Form 49B (available at web-site of Income Tax Department or http://www.tin-nsdl.com/DownloadsTAN.asp can be filed at any of TIN Facilitation Centres (TIN-FC) managed by NSDL. List of TIN-FCs are available in http://www.tin-nsdl.com/TINFaciliCenter.asp .
Can TAN application be submitted online?
TAN application can also be furnished online at https://tin.tin.nsdl.com/tan/index.html .
Can we quote PAN in place of TAN?
No. PAN should never be quoted in the field where TAN is required to be quoted.
Is PAN of the transacting Parties to be quoted in AIR?
The filer shall also quote the Permanent Account Number (PAN) of all persons in respect of whom the prescribed transactions has been registered or recorded by him, except:
- in respect of cases to which third proviso to Rule 114B or sub rule (1) of Rule 114C applies, in which case he shall mention in the AIR as to whether Form No. 60 referred to in third proviso to Rule 114B or Form No. 61 referred to in clause (a) of sub rule (1) of Rule 114C, as the case may be, has been received; and
- in cases of Government departments/consular offices in which case he will indicate so in the prescribed manner in the AIR.
How will transactions of joint parties be provided in AIR?
In the case of transactions involving joint parties, the filer shall
- If the share of each of the joint parties is specified and known, give separate line item for each party involved in the joint transaction and mention the separate transaction amount relating to that party; or
- If the shares of the parties to the joint transaction are undefined, give particulars (except amount) of all the joint parties as separate line items and mention the transaction amount against the first named party alone.
How to mention transactions of joint parties in AIR?
Each transacting party record will be identified by a unique Transaction-Detail Record Serial Number (Sr. No.). If two or more transacting parties are involved in a Joint Transaction then the Transaction-Detail Record Serial (sr. No.) Number will be common to them.
There is another field ‘Joint Transaction Party Count’, used to identify the total number of Joint transacting parties involved in a transaction. If the number of joint transacting parties involved in a transaction is 5 (i.e. 1+4 joint holders), filer should specify “5” against the first holder in the field ‘Joint Transaction Party Count’. For the rest of the joint holders “0” should be stated in this field. For transactions with a single transacting party, this field will have a default value of 1. For the first Transacting party involved in a Joint Transaction filer should provide all the transaction details. For the rest of the Joint Transacting parties, filer should provide the information that is unique to the Transacting party like Name, PAN, and Address fields (in all the remaining fields in the Transaction Detail no value should be specified). An example explaining the fields is given below:
Example: There are 3 transactions in a file. The first transaction has 3 (1+2) joint parties, the second has no joint parties and the third transaction has 2 (1+1) joint parties.
The relevant part of the input file would look as given below. It may be noted that in case of a joint party, only the name, address and PAN are required to be given. Other details like amount, date, transaction code, mode of transaction, name and address of the filers’ office/branch need not be provided.
|Name of transacting party||Transaction Detail Record Number||Joint Transaction party count||Date of transaction|
If the share of each of the joint parties is known, give a separate line item for each party involved in the joint transaction and mention the separate transaction amount relating to that party i.e. treat them as separate single party transactions. In this case, the Transaction Detail Record Number would be different for each party and the corresponding Joint Transaction Party count would be 1.
In case of Cash deposits in saving Account (transaction Code 001), Credit Card Payment (transaction code 002) and Investment in RBI bonds (transaction code 008), whether every entry for the transacting party is required to be given by the filer?
No, in case of transaction codes 001, 002 and 008 only the total of all cash deposits or all payments or receipts, as the case may be, during the relevant year will be mentioned. The date in the date column in these cases will be the last date of the relevant financial year for which transactions are reported, e.g. 31.3.2005 for transactions in FY 2004-05.
What is the data structure (file format) for preparing AIR?
AIR has to be furnished in computerized form as per the data structure (file formats) specified by the Annual Information Return – Administrator.
What are the precautions to be taken while furnishing Form 61A (Part A) in the physical form?
While submitting Form 61A (Part A), one should ensure that:
- All the fields of Form 61A (Part A) are duly filled.
- Name and PAN of filer and control totals of ‘total number of transactions reported in AIR (Part B)’ and ‘total value of all transactions reported in AIR (Part B)’ mentioned on Form 61A (Part A) should match with the respective totals in the AIR in electronic form.
- There is no overwriting/striking on Form 61A (Part A). If there is any, then the same should be ratified (signed) by the authorised signatory.