What is Annual Information Return?

What is Annual Information Return?

What is Annual Information Return (AIR)?
As per Section 285BA of the Income Tax Act, 1961, read with Rule 114E of the Income Tax Rules, 1962, 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 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 Commissioner of Income-tax (Central Information Branch) i.e. CIT (CIB). CBDT has authorized NSDL to receive AIR through the TIN Facilitation Centers on behalf of CIT (CIB). Filers may also file AIR online through internet.

The specified persons in respect of specified transactions registered or recorded by them during a financial year to furnish AIR as mentioned below:

S. No.	Class of Person required to furnish AIR	Nature of Transaction	Value of Transaction during financial year
1	Banking Company	Cash deposits aggregating in a year in any savings account of a person maintained in that bank	Rs 10 Lacs or more
2	Banking Company or any 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 in the year	Rs 2 Lacs   or more
3	Trustee or authorized  manger of Mutual Fund	Receipt from any person for acquiring   units of that Fund	Rs 2 Lacs or more
4	Company or   institution issuing bonds or debentures	Receipt from any person for acquiring   bonds/debentures	Rs 5 Lacs or more
5	Company issuing   shares through a public or rights issue	Receipt from any person for acquiring   shares	Rs 1 Lac   or more
6	Registrar or   Sub-Registrar	Purchase/ sale of immovable property by   any person	Rs 30 Lacs or more
7	Authorized officer of   the Reserve Bank of India	Receipt from any person for bonds issued   by the RBI	Rs 5 lacs or more

What is the due date for filing AIR?
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 2013-14, the due date was 31st August, 2014.
What are the consequences of not filing AIR?
Under section 271FA of the Income Tax Act, 1961, a penalty of Rs. 100/- per day of default may be levied on a person who is required to file Annual Information Return (AIR).

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 has to file one single AIR for the whole organization.

Who is authorized to receive AIR?
CBDT (Central Board of Direct Taxes) has authorized National Securities Depository Limited (NSDL) to receive AIR.

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 Folio Number to be quoted in AIR?
The Folio Number to be quoted is the TAN (Tax Deduction Account No.) 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.

Can we quote PAN in place of TAN?
No, PAN should never be quoted in the field where TAN is required to be quoted. PAN may be quoted in the field where it is required to be quoted.

What is Supplementary Information?
Only one AIR is allowed to be filed by a Filer for a given financial year. However, in case the Filer wants to rectify genuine/ bona-fide mistakes or if it wants to furnish additional transactions to be included in AIR, it may do so through 'Supplementary Information'.
What are three situations when a Filer may be required to file Supplementary Information?

The three situations when a Filer may be required to file Supplementary Information are:

• In response to a notice issued by CIT (CIB) within the time allowed by CIT (CIB)
• Suo moto - to furnish additional details not submitted in original AIR
• In response to deficiency indicated by TIN-FC in provisional receipt within 30 days of date of provisional receipt

Mention some of the features of Supplementary Information.

• Supplementary Information should be furnished as per the data structure specified by ITD.
• Supplementary Information should be incremental, i.e. contain information only on transactions reported earlier which are to be revised or if it wants to furnish additional information which is not provided in the previous return.
• Supplementary Information should be filed at the same TIN-FC where the original AIR was filed.
• In case the original AIR was filed online, Supplementary Information also should be filed online.
• Supplementary Information should be filed in the same form and manner as an AIR with appropriate remark on the form.

What is the upload charges payable by filer for AIR as well as Supplementary Information?

Number of Records Upload Fee (Rs.)* Up to 100 27.50 101-1000 165.00 More than 1000 550.00

* The Filer should also pay service tax as applicable.