Section 285BA - Obligation to furnish statement of financial transaction or reportable account
(1) Any person, being -
(a) an assessee; or
(b) the prescribed person in the case of an office of Government; or
(c) a local authority or other public body or association; or
(d) the Registrar or Sub-Registrar under the Registration Act, 1908; or
(e) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or
(f) the Post Master General; or
(g) the Collector referred to in Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or
(h) the recognized stock exchange; or
(i) an officer of the Reserve Bank of India; or
(j) a depository referred to in the Depositories Act, 1996 (22 of 1996), (k)a prescribed reporting financial institution; or
(l) a person, other than those referred to in clauses (a) to (k), as may be prescribed,
who is responsible for registering, or maintaining books of account or other documents containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return, in respect of such specified financial transaction which is registered or recorded by him during any financial year beginning on or after the 1st day of April, 2004 and information relating to which is relevant and required for the purposes of this Act, to the prescribed income-tax authority or such other authority or agency as may be prescribed.
(2) The annual information return referred to in sub-section (1) shall be furnished within the prescribed time after the end of such financial year, in such form and manner as may be
(3) For the purposes of sub-section (1), "specified financial transaction" means any -
- transaction of purchase, sale or exchange of goods or property or right or interest in a property; or
- transaction for rendering any service; or
- transaction under a works contract; or
- transaction by way of an investment made or expenditure incurred; or
- transaction for taking or accepting any loan or deposit, Which may be prescribed:
Provided that the Board may prescribe different values for different transactions in respect of different persons having regard to the nature of such transaction.
Note: Prior to Finance Act, 2019, reporting was to be done if value of transaction was more than 50000. Now this limit has been removed by Finance Act, 2019
(4) Where the prescribed income-tax authority considers that the annual information return furnished under sub-section (1) is defective, he may intimate the defect to the person who has furnished such return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the prescribed income-tax authority may, in his discretion, allow; and if the defect is not rectified within the said period of one month or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisions of this Act shall apply as if such person had failed to furnish the inaccurate information in the statement
(5) Where a person who is required to furnish a statement under sub-section (1) has not furnished the same within the prescribed time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such return within a period not exceeding thirty days from the date of service of such notice and he shall furnish the annual information return within the time specified in the ".
(6) If any person, having furnished a statement under sub-section (1), or in pursuance of a notice issued under sub-section (5), comes to know or discovers any inaccuracy in the information provided in the statement, he shall within a period of ten days inform the income-tax authority or other authority or agency referred to in sub-section (1), the inaccuracy in such statement and furnish the correct information in such manner as may be
(7) The Central Government may, by rules made under this section, specify -
- the persons referred to in sub-section (1) to be registered with the prescribed income-tax authority;
- the nature of information and the manner in which such information shall be maintained by the persons referred to in clause (a); and
- the due diligence to be carried out by the persons for the purpose of identification of any reportable account referred to in sub-section (1).
NOTIFIED FINANCIAL TRANSACTIONS (RULE 114E)
- The statement of financial transaction shall be furnished in respect of a financial year in Form 61A and shall be verified in the manner indicated therein.
- The statement of Financial Transactions in respect of a financial year shall be furnished by every person mentioned in column (3) of the Table below in respect of all the transactions of the nature and value specified in the corresponding entry in column (2) of the said Table, which are registered or recorded by him, namely: -
|
Sr No. |
Nature and value of transaction |
Class of person (reporting person) |
|
(1) |
(2) |
(3) |
|
1. |
(a) Payment made in cash for purchase of bank drafts or pay orders or banker's cheque of an amount aggregating to 10 lakh or more in a financial year. (b) Payments made in cash aggregating to 10 lakh or more during the financial year for purchase of pre-paid instruments issued by the Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007. (c) Cash deposits or cash withdrawals (including through bearer's cheque) aggregating to Rs 50 lakh or more in a financial year, in or from one or more current account of a person. |
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies. |
|
2. |
Cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. |
(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (ii) Post Master General |
|
3. |
One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to Rs 10 lakh or more in a financial year of a person. |
(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (ii) Post Master General (iii) Nidhi Company referred to in section 406 of the Companies Act, 2013; (iv) Non-banking financial company (allowed to hold or accept deposit from public) |
|
4. |
Payments made by any person of an amount aggregating to - (i) Rs 1 lakh or more in cash; or (ii) Rs 10 lakh or more by any other mode against bills raised in respect of one or more credit cards issued to that person, in a financial year. |
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or any other company or institution issuing credit card. |
|
5. |
Receipt from any person of an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). |
A company or institution issuing bonds or debentures. |
|
6. |
Receipt from any person of an amount aggregating to Rs10 lakh or more in a financial year for acquiring shares (including share application money) issued by the company. |
A company issuing shares. |
|
7. |
Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year. |
A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013. |
|
8. |
Receipt from any person of an amount aggregating to Rs 10 lakh or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund). |
A trustee of a Mutual Fund |
|
9. |
Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travelers cheque or draft or any other instrument of an amount aggregating to Rs 10 lakh or more during a financial year. |
Authorised person as referred to in the Foreign Exchange Management Act, 1999 |
|
10. |
Purchase or sale by any person of immovable property for an amount of Rs 30 lakh or more or valued by the stamp valuation authority referred to in section 50C of the Act at Rs 30 lakh or more. |
Registrar or Sub-Registrar |
|
11. |
Receipt of cash payment exceeding Rs 2 lakh for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.) |
Any person who is liable for audit under section 44AB of the Act. |
*The statement of financial transactions referred to in sub-rule (1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded.
Penalty for failure to furnish Statement of Financial Transaction or Reportable Account (Section- 271A)
If a person who is required to furnish a statement of financial transaction or reportable account under section 285BA fails to furnish such statement within the time prescribed, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of Rs 500 for everyday during which such failure continues:
Provided that where such person fails to furnish the statement within the period specified in the notice issued under section 285BA, he shall pay, by way of penalty, a sum of Rs 1000 for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.
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