Monday, August 13, 2007

AIR(ANNUAL INFORMATION REPORT) DETAIL IN NEW ITR FORMS


on Monday, August 13, 2007

WHAT TYPE OF ENTRIES TO BE REPORTED.

In all the new ITR(Income Tax Return) forms an information about following transaction has been demanded.And what i observe that person are normally ignoring this and leaving this detail blank.
1.Cash deposits aggregating to ten lakh rupees or more in a year in any savings account by you maintained in a banking company to which the Banking Regulation Act, 1949 (10 of 1949),applied (including any bank or banking institution referred to in section 51 of the Act.

2.Payment made by you against bills raised in respect of a credit card aggregating to two lakh rupees or more in a year.

3.Payment made by you of an amount of two lakh rupees or more for purchase of units of Mutual Fund.

4.Payment made by you of an amount of five lakh rupees or more for acquiring bonds or debentures issued by a company or institution.

5.Payment made by you of an amount of one lakh rupees or more for acquiring shares issued by a company.

6.Purchase by you of any immovable property valued at thirty lakh rupees or more.

7.Sale by you of any immovable property valued at thirty lakh rupees or more.

8.Payment made by you of an amount of five lakh rupees or more in a year for investment in bonds issued by Reserve Bank of India.



WHETHER DEPT HAS SOME SOURCE TO CROSS VERIFY THE TRANSACTION

Now the dept is ready to cross verifying your detail with AIR(Annual Information Return).In all the above transaction some one is responsible to file the AIR and file it to income tax dept. through TIN_NSDL .but it was published some where that in almost 60 % of the entries reported in AIR does not have a PAN.The reason behind that is person doing this transaction are not giving their Pan to the person who are liable to file the return. Though this % is reducing day by day but yet it is a large %.


HOW DEPT WILL MATCH TRANSACTION IF PAN HAS NOT BEEN SUPPLIED

generally public think that if PAN is not supplied than our transaction can not be traced by the dept. To some extent they are right but not 100 % .In new era of computersiation it is possible to trace transaction without Pan.

A software has been developed by the DIT(systems) to match the transaction without pan in Air.According to tender floated on income tax website there are 8,00,000 transaction without Pan reported in AIR and department has a Pan database of 5 crore.The software will detect two possible Pan for the every transaction without Pan reported in Air on the basis of, Name of the person,address etc,then each suggested pan for a particular transaction by the software will be verify by the person manually on the the basis of other parameters not checked by the software . after the complete verification pan will be assigned to the transaction.in this process in my view dept will have a success almost 60-70 % .

So person who are not reporting information in new ITR by presuming that if pan not given transaction can not be traced ,should reconsider it and should ready themselves according to alertness of income tax dept.

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  1. This info does not say what happens when the Tax Payer (Assessee) reports the transaction but the Institution does not report that in their IR Return

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