ITR with air - Complete ITR

CA. Chikkerur C R , Last updated: 30 October 2010  
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ITR -   Income Tax Return

AIR Annual Information Report

AIR is a mandatory requirement and hence everyone must comply with it while filing their ITR. In fact, several cases where the taxpayers have received notices for scrutiny of Income Tax Returns based on the information reported by the concerned Bank

We (all) are under wrong impression that the information regarding specified high-value transactions need to be reported to the Income Tax Authorities by the concerned Bank, Financial Institutions, Companies or Mutual Funds. But fact is that even common salaried individual need to report info on AIR in his ITR.

ITR without AIR is incomplete if you have high value transactions as below during previous year.

Schedule AIR (Annual Information Return) of ITR (Income Tax Return) Form

Code

Nature of Transaction

Amount

001

Cash deposits aggregating to ten lakh rupees or more (Rs.10,00,000) in a year in any savings account maintained by you in a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applied (including any bank or banking institution referred to in section 51 of that Act)

 

 

 

 

002

Payment made by you against bills raised in respect of a credit card aggregating to two lakh rupees or more (Rs.2,00,000) in a year.

 

 

 

 

003

Payment made by you of an amount of two lakh rupees or more  (Rs.2,00,000) for purchase of units of Mutual Fund

 

 

 

 

004

Payment made by you of an amount of five lakh rupees or more (Rs.5,00,000) for acquiring bonds or debentures issued by a company or institution

 

 

 

 

005

Payment made by you of an amount of one lakh rupees or more (Rs.1,00,000) for acquiring shares issued by a company

 

 

 

 

006

Purchase by you of any immovable property valued at thirty lakh rupees or more (Rs.30,00,000)

 

 

 

 

007

Sale by you of any immovable property valued at thirty lakh rupees or more Rs.30,00,000)

 

 

 

 

008

Payment made by you of an amount of five lakh rupees or more (Rs.5,00,000) in a year for investment in bonds issued by Reserve Bank of India

 

The values of the transactions mentioned in the above table have to be considered as aggregate in a year and not per transaction. However, in case of property transactions, the limit is for single transaction.

You must keep in mind that AIR is a mandatory requirement and hence you must comply with it. Therefore, it is advisable to furnish the details so that there are no discrepancies between the information reported by you (or not reported) and the concerned institutions.

If anybody has filed his ITR with AIR. Its always better to revise your ITR to make sure that he complies all rules

CA. CHIKKERUR C R
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CA. Chikkerur C R
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Category Income Tax   Report

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