We all know that Annual Information Return (AIR) is considered as very crucial financial transaction. But many time people are unaware regarding this concept and hence they are unable to comply with the same. Hence today I am covering this topic to state that what is annual information return (AIR), what is the due date of filing AIR and what are the consequences of non filing of AIR.
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 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. As per this rule, specified persons (Filers) should prepare their AIR in Form 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. AIR should be furnished to the Director of Income Tax (Intelligence and Criminal Investigation) i.e. DIT (I & CI). CBDT has authorized NSDL to receive AIR through the TIN Facilitation Centers on behalf of DIT (I & CI).
The due date for filing AIR is 31st August immediately following the Financial Year in which the transaction is registered or recorded. For example, in respect of AIR required to be filed for transactions registered or recorded in F. Y. 2019-20, the due date would be 31st August, 2020.
Under section 271FA of the Income Tax Act, 1961, a penalty of Rs. 500/- per day of default may be levied on a person who is required to file Annual Information Return (AIR).However, if person fails to furnish the return within the period not exceeding 60 days as specified in the notice under sub-section (5) of section 285BA , he shall pay, by way of penalty, a sum of Rs 1,000 for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the return expires.
Republished with Amendments