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AIR is not active in ITR 2

04 July 2011

Dear All,

Just to update you all, the new ITR 2 excel Utility doesnot have the AIR schedule. The AIR schedule is hidden in the Utility. So you and your clients will not be able to fill the AIR related details in the new ITR2 (version1) excel utility. In future it may lead to non disclosure of AIR information.

I had written mails to ITD, but the issues are not at resolved. Same attached for ready reference

Please raise the same with IT department immediately.

Thanks

CA Naveen

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5 Replies

CA. Naveen Bhat (CA) (175 Points)
Replied 10 July 2011

Originally posted by : CA. Naveen Bhat
	Dear All, Just to update you all, the new ITR 2 excel Utility doesnot have the AIR schedule. The AIR schedule is hidden in the Utility. So you and your clients will not be able to fill the AIR related details in the new ITR2 (version1) excel utility. In future it may lead to non disclosure of AIR information. I had written mails to ITD, but the issues are not at resolved. Same attached for ready reference Please raise the same with IT department immediately. Thanks CA Naveen

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 July 2011

AIR is not displayed in ITR does not means that department is not having information, they have other sources of data collection, now the system has adopted to ask for PAN cards for every high value transactions, where they have reliable source of data collected from the receipent of amount,

separate department is working on this subject and for mere AIR, regular assessment is not barred, however if they belive that person has concealed the facts, they may call the person to meet the requirements of reconcillation of their data of high value transactions with the return filed.

CA. Naveen Bhat (CA) (175 Points)
Replied 10 July 2011

Dear Mr. Sharma, I never meant that department doent have the required information. But as a assessee you have entered into any transaction related to AIR, you need to report the same in your income tax returns also. Department will cross verify the same. But if the department has any information thru AIR returns and you have not disclosed the same then your may be in trouble. To disclose the same there is seperate schedule in ITR 2. But the same is hidden so you wont be able to report the AIR information. Refer to last year ITR 2 to verify the same. I had raised the same with ITD by writing the mail to ASK. However, they are yet to resolve the same. Thanks.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 July 2011

AIR is a method of voluntarily declaration of high value transactions by assessee, but how much assessee declare this in correct way? say a person has 5 credit cards out of which 3 have exceeded the limit of 2 lacs per annum, but hardly anybody show this in AIR,

at the time of jewellary purchase, the person dislike to represent the same in AIR,

air travel / purchase of property/ car are several venues where the assessee declares the PAN, but forget to disclose in AIR, so its departmental thought not to ask for AIR from small assessees, but compile their own source, and when it exeeds the annual income declared by assessee, ask them to reconcile the same with departmental data with their annual income statements ( which are not asked in filing of returns), at this stage he is required to produce balance sheet, savings and other sources of funding.

Subhash (Proprietor) (21 Points)
Replied 11 July 2011

Schedule AIR has been omitted from Form ITR-2 w.e.f. 1.4.2011 as per IT(Third Amdet.) Rules, 2011.

Hence, for the Assessment Year 2011-2012 there is no need of proviiding the details of such specified transactions of AIR as was necessary for Assessment Year 2010-2011.