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Annual Information Return

Annual Information Return (AIR) in response to demonetization of 500 and 1000 notes

November 18, 2016

Further to the demonetization of the high denomination notes, which is resulting in huge deposits of cash in Bank accounts, to monitor the possible tax evasion CBDT has mandated the reporting of the same by Banks / Cooperative society / Post Offices by amending the Rule 114E of Income Tax.

CBDT vide its notification no. 104/2016 dated 15th November, 2016 has amended Rule-114E pertaining to Statement of Financial Transactions also known as Annual Information Return (AIR) which mandates to report all cash deposits exceeding Rs.2,50,000 in other than a current account, cash deposits exceeding Rs.12,50,000 for a current account during the period 9th November 2016 to 30th December 2016.

Also Rule 114B has been amended now quoting of PAN is mandatory where cash deposits are made with banks/co-operative society/post offices exceeding Rs 50,000 in a day; or aggregating to Rs.2,50,000 during the period 9th Nov, 2016 to 30th Dec, 2016.

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

NOTIFICATION

New Delhi, the 15th November, 2016

G.S.R 1068(E).- In exercise of the powers conferred by section 285BA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income–tax (30th Amendment) Rules, 2016.

    (2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 114B, in the Table, for serial number 10 and entries relating thereto the following serial number and entries shall be substituted, namely:-

 

Sl. NoNature of transactionValue of transaction
(1)(2)(3)
“10.

Deposit with,-

(i) a banking company or a cooperative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) Post Office.

Cash deposits,-

(i) exceeding fifty thousand rupees during any one day; or

(ii) aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.”.

 

3. In the said rules, in rule 114E, ̶ (i) in sub-rule (2), in the Table, after serial number 11 and entries relating thereto the following serial number and entries shall be inserted, namely:-

 

Sl. NoNature of transactionValue of transaction
(1)(2)(3)
“12.

 

Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to ̶

(i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or 

(ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person.

 

(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).”;

 

(ii) in sub-rule (5), the following proviso shall be inserted, namely:- “Provided the statement of financial transaction in respect of the transactions listed at serial number (12) in the Table under sub-rule (2), shall be furnished on or before the 31st day of January, 2017.”.

[Notification No. 104/2016][F.No.370142/32/2016-TPL]

(Dr. T.S. Mapwal)

Under Secretary to the Government of India

Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification S.O.3399(E), dated 07th November, 2016.

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