What is Annual Information Return (AIR)???

What is Annual Information Return (AIR)?

As per Section 285BA of the Income Tax Act, 1961, specified entities 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 are the persons required to file AIR?

The Annual Information Return shall be furnished by every person mentioned in column(2) of the table below in respect of all the transactions of the nature and value specified in the corresponding entry in column(3) of the said table, which are registered by him during a financial year:

S.No.(1)	Class of Person (2)	Nature and Value of Transaction (3)
1.	Banking Company	Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank.
2.	An 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.	Mutual Fund	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	Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.
7.	An Officer of Reserve Bank of India	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 Authorised 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.

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 the Due Date of furnishing AIR?

Annual Information Return(AIR) is to be furnished by 31^st August immediately following the financial year in which above transactions are recorded or registered

Penalty for failure to funish AIR?

If a person who is required to furnish Annual Information Return fails to furnish such return within the time prescribed, such person shall pay penalty of Rs. 100 for every day during which the failure continues.

This Article has been Shared by Student of ICAI Palak Aggarwal. She can be reached at aggarwal.palak2809@gmail.com