This is in continuation to my previous article ‘Is it necessary to quote PAN’(Be aware – Taxman is watching). Now you are aware about the transactions for which the service provider like Car dealer, banker, insurance company, etc. obtains PAN number from you. Aren’t you curious to know what these service providers do with your PAN information? Will they share this information with Income Tax department?
Not all. As per Section 285BA read with Rule 114E, some of the service providers should furnish details about the specified transactions recorded by them during the financial year. This return of giving the information to the department is known as ‘Annual Information Return’ (AIR) and the due date of filing AIR is 31st August of the subsequent year.
Who is giving your transaction information to the department through AIR?
- Banks – regarding Cash deposits aggregating to 10 Lakhs or more in a year in any saving account of a person maintained in that bank.
- Banks – regarding Credit Card payment made by any person aggregating to Rs.2 Lakh rupees or more in the year
- Mutual Fund – Investment from any person of an amount of Rs.2 Lakh or more for acquiring units of Mutual Fund
- Company or Institution – for example; Shriram Transport, Mahindra Finance. Investment from any person of any amount of Rs. 5 Lakh or more for acquiring bonds or debentures
- Company – receipt from any person of amount of 1 Lakh rupees or more for acquiring shares issued by company
- Sub-Registrar – Purchase or sale by any person of immovable property valued at Rs.30 lakh rupees or more
- RBI – Investment in bonds by any person aggregating to Rs.5 lakhs or more
So, the Car dealer, Hotels and restaurants, travel agents, Telecom Company, are not submitting AIR information to Income Tax department. However, the income tax department has the power to seek information from them on case to case basis.
- Did you receive notice seeking information on High-Value Transactions?
- New requirement of filing Form No 61A for statement of financial transactions wef 1st April 2016
- New rule for quoting PAN and reporting of financial Transactions