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Annual information return

Pallavi (Chartered Accountant) (34 Points)

16 August 2016

Dear Expert Please advice whether Banking Institution needs to give detail of Current Account transaction for the AIR of year ending 2016.

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15 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182297 Points)
Replied 16 August 2016

Yes, but transaction limits differ.

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Pallavi (Chartered Accountant) (34 Points)
Replied 16 August 2016

Sir, I will be greatful to you if u can provide me the link or limit applicable.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 16 August 2016

Banks are required to furnish return referred u/s 285BA read with rule 114E only in cases where Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank and
Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year.
No such requirement is there is respect of current account transactions.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182297 Points)
Replied 16 August 2016

https://www.kpmg.com/IN/en/services/Tax/TaxDocuments/KPMG-Flash-News-Changes-in-PAN-reporting-and-AIR-Rules-2.pdf

Limits in savings acc is 10 lakhs, while that in current acc. is 50 lakhs per annum for AIR reporting.

Pallavi (Chartered Accountant) (34 Points)
Replied 16 August 2016

Is limit applicable for FY 2016-17 as well as for the FY 2015-16?

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 16 August 2016

It came into effect from 1st April 2016.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182297 Points)
Replied 16 August 2016

The notification date is about January, 2016, So from that day it should be applicable, i.e. from F .Y. 2015-16 onwards.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 16 August 2016

@ Dhirajlal Sir,
The attachment says that rules relating to PAN compliances will come into effect from 01.01.2016 while new rules relating to AIR compliances will come into effect from 01.04.2016.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182297 Points)
Replied 16 August 2016

@ Harshal

Thanks for correcting. Actually I had not read completely.

Pallavi (Chartered Accountant) (34 Points)
Replied 16 August 2016

So, is there any limit for Current accounts for FY 2015-16?

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 16 August 2016

Thanks to you too sir, this new amendment doesn't striked to me at the first instance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182297 Points)
Replied 16 August 2016

Notification No. 95/2015 dt December 30, 2015 issued whereby Income-Tax (22nd Amendment) Rules, 2015 notified. Rules 114B, 114C and 114D have already come into force from January 1, 2016 while Rule 114E shall come into force from April 1, 2016.

The limit of current account reporting is under Rule 114E, which comes into Force from F.Y 2016-17, as clarified in the statemenrt as follows:

The Due Date of filing of return in Form No. 61A - on or before May 31, 20XX. [First such return shall be filed for the FY ended March, 2017- on or before May 31, 2017- Rule 114E(2)]