Section 285BA

Annual Information Return

Authorising ‘agency’ for receiving Annual Information Returns on behalf of Commissioner of Income-tax (Central Information Branch) under section 285BA, read with rule 114E - In exercise of powers conferred under sub-section (1) of section 285BA of the Income-tax Act, 1961 (43 of 1961) read with Notification No. 182/2005/F.No. 142/44/2003-TPL, dated 11-7-2005, notifying the amended rule 114E regarding furnishing of Annual Information Return, the Central Board of Direct Taxes hereby authorises National Securities Depository Limited, Trade World, 4th Floor, Kamala Mills Compound, Lower Parel, Mumbai - 400 013, including its front offices called TIN Facilitation Centres to act as an ‘Agency’ authorized to receive Annual Information Return on behalf of Commissioner of Income-tax (Central Information Branch) under proviso to sub-rule (3) of rule 114E of the Income-tax Rules, 1962.—Order : F.No. 414/7/2004-IT (Inv. I), dated 21-7-2005.

Designating ‘Annual Information Return - Administrator’ under the Scheme for filing of Annual Information Returns of High Value Transactions - In exercise of powers conferred under sub-section (2) of section 285BA of the Income-tax Act, 1961 (43 of 1961) read with sub-rule (7) of rule 114E, [S.O. No. 979(E) Notification No. 182/2005/F.No. 142/44/2003-TPL, dated 11-7-2005], the Central Board of Direct Taxes hereby designates Director General of Income-tax (Systems), ARA Centre, E-2, Jhandewalan Extension, New Delhi, to act as ‘Annual Information Return - Administrator’ under rule 114E of the Income-tax Rules, 1962.—Order : F.No. 414/7/2004-IT (Inv. I), dated 21-7-2005.

Obligation to furnish Annual Information Return - Clarifications regarding furnishing of Annual Information Return under section 285BA - Section 285BA of the Income-tax Act, 1961 requires certain specified persons (filers) to file an Annual Information Return (AIR) in respect of specified financial transactions registered or recorded by him during a financial year.  The nature of the transactions and the threshold value above on which information has to be submitted in the AIR are prescribed in the Table in rule 114E of Income-tax Rules, 1962. Rule 114E has been amended vide Notification No.182/2005, dated 11-7-2005. The Form in which the return is to be filed is Form No. 61A, notified vide  Notification No. 185/2005. The CBDT has authorized National Securities Depository Ltd. (NSDL), Trade World, 4th Floor, Kamala Mills Compound, Lower Parel, Mumbai-400 013 as the agency authorized to receive AIRs on behalf of the Commissioner of Income-tax (Central Information Branch).The filers can furnish the AIR with the facilitation centres of NSDL located in different parts of the country. The addresses of these facilitation centres are available on the website www.incometaxindia.gov.in and www.tin.nsdl.com.

2. The filer is required to quote his ‘Folio number’ in Para 3 of Part A of Form 61A and Para 4 of Part B of Form 61A for filing of AIR. This folio number will be the unique identity of the filer for all purposes of AIR. It has been decided that the folio number will be, in the case of Government filers, the TAN of the filer, and in the case of non-Government filers the TAN of the principal office of the person filing the AIR.  Persons filing AIR should quote TAN as above in both Part A and Part B of Form No. 61A in the relevant column of AIR. It is further clarified that persons filing annual information returns should furnish only one return even if they may have more than one branch.

3. Item No. 1 of the Table in rule 114E specifies that transactions involving aggregate cash deposits of ten lakh rupees or more in a savings account of a person are to be reported by the filer. It is clarified that only the aggregate of all the cash deposits in the savings account of a person is required to be reported as one transaction and the date for the transaction is to be mentioned as the last date of the financial year, i.e., 31-3-2005 in respect of transactions for the financial year 2004-05.

4. Item No. 2 of the Table in rule 114E specifies that transactions involving aggregate payments of two lakh rupees or more in respect of credit card of a person are to be reported by the filer. It is clarified that only the aggregate of all the payments by a person to the credit card company is required to be reported as one transaction and the date for the transaction is to be mentioned as the last date of the financial year, i.e., 31-3-2005 in respect of transactions for the financial year 2004-05.

5. Item Nos. (3), (4) and (5) of the Table in rule 114E specify “Receipt from any person of any amount of rupees . . . or more for acquiring . . . ”.  Situations may arise where the filer  receives from a transacting party an amount higher than the threshold limit for allotment of units, bonds, debentures or shares but the actual allotment may have been made of an amount lower than the threshold value.  It is hereby clarified that all such transactions where the receipt is more than the threshold limit specified are to be reported in the AIR. It is further clarified that the amount actually received from a transacting party, and not the amount relating to the allotment, is to be reported in the AIR.

6. Item No. 6 of the Table in rule 114E specifies that transactions of purchase or sale by any person of immovable property valued at thirty lakh rupees or more are to be reported by the filer. Situations may arise where the transaction is in respect of a property valued at more than rupees thirty lakhs involving joint parties and the value for one or more party is less than rupees thirty lakhs. It is clarified that all such transactions are to be reported in the AIR, giving requisite details in respect of all the joint parties, even though the value of the transaction in the hands of one or more of the joint parties is less than the threshold limit specified in Item No. 6 of Table in rule 114E.

7. Item No. 7 of the Table in rule 114E specifies that transactions involving Aggregate 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 are to be reported by the filer. It is clarified that only the aggregate of all the receipts from a person is required to be reported as one transaction and the date for the transaction is to be mentioned as the last date of the financial year, i.e., 31-3-2005 in respect of transactions for the financial year 2004-05.

8. As per sub-rule (2) of rule 114C, every person receiving any document relating to a transaction specified in rule 114B has to ensure, after verification, that the PAN has been duly and correctly quoted in the document. All persons furnishing AIR should, therefore, verify the PAN quoted by the transacting party before furnishing the annual information return under section 285BA.

9. With a view to ensuring that the annual information return conforms to the required specifications, the person(s) responsible for filing return shall ensure the following:—

   (i)  Form No. 61A - Part A is duly filled in and verified and enclosed in paper format with the Form No. 61A - Part B in computer media.

  (ii)  The data structure of the AIR conforms to the data structure prescribed by the Administrator - Annual Information Return authorized by the Board.

(iii)  The computer media containing AIR is readable, clean, virus free and not corrupt.

(iv)  Permanent Account Number (PAN) of the person responsible for filing AIR (except in cases of Government departments) is mentioned in Form No. 61A (Part A and Part B).

  (v)  Tax Deduction Account Number (TAN) of the office of the Principal Officer of the person responsible for filing AIR is mentioned in Form No. 61A (Part A and Part B) as the folio number for non-Government filers and of the filer in case of Government filers. In case TAN is not allotted, the return should be accompanied by a copy of acknowledgement of application made for allotment of TAN or duly filled in Form No. 49B with the requisite fees (only for Government filers).

(vi)  The Control totals of total number of transactions and total value of all transactions mentioned at Item Nos. 8 and 9 of Form No. 61A (Part A) tally with the corresponding total at Item Nos. 7 and 8 of Form No. 61A (Part B).

(vii)  The PAN, name, address, date of transaction, mode of transaction and amount of the transacting party or each of the joint parties in respect of every transaction are correctly and properly filled in at Item No. 9 of Form 61A (Part B). Where PAN is not required to be obtained under the law, it shall be mentioned in the form as to whether the transacting party is a Government Department or Consular Office or Form 60 or Form 61, as the case may be, has been received.

In case the AIR on the computer readable media is found to be corrupted or does not fulfil the above guidelines, the filer is expected to make appropriate correction and resubmit the Return.—Circular No. 7/2005, dated 24-8-2005.

Do’s and Don’ts for Annual Information Returns

1. Preparation of Annual Information Return (Original AIR)

  (a)  Prepare the return as per the file format notified by ITD. It can be prepared using any in-house/third-party software. You can also use the Return Preparation Software (AIR-RPU) developed by NSDL which is freely downloadable from NSDL website  www.tin-nsdl.com

  (b)  At the time of preparing AIR, following precautions need to be taken :

   (i)  AIR must be filed by the principal office of the person responsible for filing AIR. Only one return must be filed as a single unit and no branch-wise or transaction code-wise reports.

  (ii)  Quote your correct Tax Deduction and Collection Account Number (TAN), Name and Address. It must be noted that mentioning of TAN in the return is mandatory for all filers (Govt. and non-Government).

  (a)  If you are a non-Government entity, provide TAN of the principal office of the person responsible for filing AIR;

  (b)  If you are a Government entity, the TAN of the respective Government entity must be quoted in the AIR.

(iii)  Quote Permanent Account Number (PAN) of the filer correctly. It is mandatory for non-Government filers.

(iv)  Provide correct details with respect to the transactions being reported as per the specified form.

  (v)  The PAN of the transacting party should be provided wherever applicable.

(vi)  The district code with respect to each transacting party should be correct and as provided in the file format.

(vii)  In case of AIR being prepared by Banking Company, Credit Card Company or Authorised Officer of Reserve Bank of India:

   1.  Various transactions pertaining to one saving account, one credit card or one person occurred during the relevant financial year should be reported as a single transaction with total value.

   2.  The transaction date in such cases (i.e. cases where more than one transaction are reported as a single transaction) should be the last date of the financial year e.g. 31-3-2005 for financial year 2004-05.

   3.  The mode of transaction in such cases (i.e. cases where more than one transaction are reported as a single transaction) the mode by which the last transaction is recorded should be mentioned in the return.

   4.  In such cases, where the address of the transacting party changes during the financial year, the latest address should be mentioned in the return.

(viii) In case of AIR being prepared by Registrar of immovable properties:

   1. The details of both buyer and seller should be given as two separate transactions (with same transaction value) under respective transaction codes (006 for purchase and 007 for sale).

   2.  The value of transaction being provided should be the value considered for assessment of stamp duty.

   3.  If there are more than one buyer and/or seller involved in the transaction (i.e. joint party transaction), details of each buyer/seller should be given in the return.

(ix)    Care should be taken while reporting joint party transactions i.e. where more than one party is jointly involved in a particular transaction.

The manner of presentation with “respect to joint party transactions is illustrated in Table 1 below:

Table 1

Transaction Detail Record No. (Sr. No.)

Joint transaction party count

Date of transaction

Name of the transacting party

Nature of transaction

Amount of transaction

1

3

31-3-2005

X

Cash Deposit (001)

1500000

1

0

 

Y

 

 

1

0

 

Z

 

 

Notes:

   1.  There are 3 parties jointly involved in a cash transaction of Rs. 1500000.

   2.  The same transaction detail record No. is given for all the three joint transacting parties.

   3.  The joint transaction party count is 3 which is written against the first joint holder.

   4.  The date of transaction should be left blank in case of joint party (second and third party).

   5.  The transaction code and the mode of transaction should be left blank for the second and third joint transacting party.

   6.  The amount of party should be left blank in case of joint party (second and third party).

(x)     Obtain correct Permanent Account Numbers (PAN) for the transacting parties; care should be taken to ensure the correct PAN is reported in the AIR. If PAN of a party is not available, then this field should be left blank. If PAN is provided but not structurally valid, then mention ‘INVALIDPAN’.

(xi)    If the PAN is not provided by the transacting party or where the PAN provided is not structurally valid, you are required to mention:

(a)  whether the transacting party is Government or non-Government entity;

(b)  whether Form 60 or 61 is provided or not.

2. Preparation of Supplementary Annual Information Return

  (a)  Only one AIR should be furnished for a given financial year, no provision for filing ‘Revised AIR’.

  (b)  In case of genuine or bona fide  mistakes or where you wish to furnish additional information in respect of transactions reported in the Original AIR, you are required to file ‘Supplementary Annual Information Return’.

  (c)  Supplementary AIR must be furnished in accordance with the file format specified by the ITD.

  (d)  Supplementary AIR to be furnished in the same form and in the same manner as Original AIR.

  (e)  Care must be taken to ensure that the word ‘Supplementary Annual Information Return’ is mentioned on Form 61A (Part A) to be furnished with the electronic return.

  (f)  Supplementary AIR can be prepared using any in-house/third-party software. You can use the software developed by NSDL that is freely downloadable from NSDL website www.tin-nsdl.com

  (g)  Special care must be taken while reporting transactions in the Supplementary AIR. Transactions requiring update, must be correctly reported in accordance with the file format specified by ITD.

        The manner of presentation of the Supplementary AIR is illustrated in Table 2 below:

Table 2

Transaction Detail Record No. (Sr. No.)

Joint trans-action party count

Revision Mode

Trans-action Detail Record  No. (Sr. No.) to be revised

Date of transaction

Name of transacting party(ies)

Nature of trans-action

Amount of transaction

4

1

D (Delete)

1

31-3-2005

Z

Credit Card payment (002)

210000

5

2

D (Delete)

3

31-3-2005

X

Cash Deposit (001)

1500000

5

0

D (Delete)

3

 

Y

 

 

6

2

A (Addition)

3

31-3-2005

P

Cash Deposit (001)

1600000

6

0

A (Addition)

3

31-3-2005

Q

 

 

7

1

A (Addition)

 

31-3-2005

M

Cash Deposit (001)

1200000

Notes:

   1. There were 3 transactions in the original AIR. Therefore, in the supplementary return, the Transaction Detail Record No. begins with No. 4.

   2.  The first transaction of the supplementary return (with transaction detail record number 4) deletes the first transaction (with transaction detail serial number 1) in the original return. Therefore, the value in column 4 is 1 for this transaction.

   3.  Modification of a record in the original return is deletion of the record and addition of a new record. Therefore, in this example the second transaction and third transaction in the supplementary return (transaction detail record numbers 5 and 6) modifies the 3rd transaction of the original return by deletion and addition. In this example the transaction being modified is a joint transaction with 2 parties. Therefore joint transaction party count is 2 mentioned against the first holder and 0 against the second holder.

   4.  The last transaction in the supplementary return (transaction detail record number 7) is an addition of the transaction which is not provided in the original return.

3. Validation of AIR using File Validation Utility (Original/Supplementary AIR)

  (a)  After the return is prepared, you should validate the same using NSDL’s File Validation Utility (FVU) which is also available at the NSDL website www.tin-nsdl.com

  (b)  In case the return is valid (format level verifications), the FVU will generate two files, viz.;

   (i)  FORM61A.html - ‘AIR Statistics Report’

  (ii)  FORM61A.fvu - ‘Upload file’

  (c)  FORM61A.html is a ‘AIR Statistics Report’ which is a summary of the AIR successfully validated by the FVU.

        Care should be taken to ensure that the details mentioned in the AIR statistics report matches with the corresponding values given in Form 61A (Part A) which has to be filed in physical form.

  (d)  FORM61A.fvu is an ‘upload file’ generated with the same file name as the ‘input file’ but with extension fvu. For example, if ‘input file’ name is FORM61A.txt, the upload file generated will be FORM61A.fvu.

4. Furnishing of Annual Information Return

  (a)  Copy the .fvu file on a floppy/Compact disk (CD) and affix a label mentioning the TAN, Financial Year, Form No., Name of the Filer and furnish the same along with Form 61A-Part A with any TIN-Facilitation Centres (TIN-FCs). The list of TIN-FCs available on NSDL TIN website www.tin-nsdl.com

  (b)  You can also file AIR directly to NSDL TIN website. Detailed procedure available at www.tin-nsdl.com

  (c)  In Form 61A-Part A, TAN of the filer should be provided as folio number.

  (d)  Upload charges is as given below:

  (e)  The upload charges does not include charges for preparation of return by TIN-FC (Filers are free to make their own returns).

  (f)  In case of Supplementary AIR, care must be taken with respect to the following while furnishing the same to the TIN-FC.

   (i)  If Original AIR was filed using NSDL’s Web based facility, you should file the Supplementary AIR also using the same facility.

  (ii)  A copy of the Provisional Receipt received at the time of furnishing the original AIR should be furnished along with the Supplementary AIR.

(iii)  Label must be affixed on the Supplementary AIR giving details of Folio No. (TAN), Name of the filer, period in respect of which supplementary AIR is furnished, PAN (not mandatory for Government filers), Provisional Receipt No. (Original AIR).

Upload charges

Number of records

Upload fees

Upload fees inclusive of service tax (as applicable at present)

Up to 100 records

Rs.   25

Rs.   28

101 to 1000 records

Rs. 150

Rs. 165

More than 1000 records

Rs. 500

Rs. 550

DON’Ts

   (i)  Do not furnish the return in a format other than ASCII text format. This means excel, word files, etc., will not be accepted. In case you are using NSDL RPU which is an excel based utility, after the data has been entered correctly, click the “create file” icon to generate the ASCII text file.

  (ii)  Do not furnish the return without validating it using FVU.

(iii)  Do not make mistake in TAN of the filer quoted in the return.

(iv)  Do not file separate return for each branch of the filer.

  (v)  Do not file separate return for each type of transaction by the same filer.

(vi)  Do not forget to collect Provisional Receipt/Non-Acceptance Memo from the TIN-FC.

Detailed guidelines for preparation of AIR (Original/Supplementary) are available in NSDL AIR Filers’ Manual, which is freely downloadable from NSDL website (www.tin-nsdl.com.)

In case you require any further assistance or clarification, you may contact TIN Call Centre at 022-24994650 or e-mail at tin info@nsdl.co.in