Form 26as - air section

Pacer (C) (86 Points)

21 March 2013

Dear Experts,

While checking the Form 26AS for the year 2011, I noticed that - under AIR a share purchase transaction is reported. The transaction details are -

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005 - Acquiring shares 27-Dec-2010 Single 1 -

>= Rs. 1,00,000

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This has been reported by -

PUNJAB & SIND BANK , BANK HOUSE PUNJAB &

SIND BANK ,HO IPO CELL, 21 RAJENDRA PLACE,

NEW DELH NEW DELHI 090031 09 110008

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The amount shown here is almost 2,00,000 and the mode of transaction is indicated as 'Cheque'.

I never purchased shares of Punjab & Sindh Bank worth 2,00,000 INR. The amount of shares purchased was INR 6000 (Six thousand only). Also, this amount was paid through electronic transaction (ASBA) route.

As the amount was no greater than 1,00,000. I did not include such transaction in AIR while filing my return.

Can you please advise as to how can this be rectified? what are the implications and has anyone else also faced such situation?

Thank you in advance for your help.

Regards,

Pacer

The Income Tax Department is watching you silently ! The detective camera on your action are the provisions under The Income Tax Act under which data related to your financial transactions are reported by person with whom you transact.

Section 285BA read with Income Tax Rule 114E under which specified person are held responsible for filing Annual Information Return with the Income Tax Department.These data are then taken up on a sample basis for scrutiny selection.

Here are the seven reasons why information about your transaction will be stored in central database of income tax department . This is as per law and the same person with whom you have made transaction is compelled under I .T. Act to submit the information to department annually !

You have deposited Rs 10 lakhs in aggregate in a savings account with a bank.
Payments of Rs 2 lakhs in aggregate in a year made through your credit cards.
Bought Mutual Fund units for Rs 2 lakhs from a mutual fund company.
Invested Rs 5 lakhs in bonds or debentures issued by the company or institution.
Applied for shares in IPOs for Rs 1 lakhs or more.
Purchased or sold immovable property valued at 30 lakh rupees or more.
Applied for RBI bonds for Rs 5 lakh or more in a year

Respective parties are liable to file annual information return by specifying assesses with which they have done specid=fied transactions,