Last date to file income tax returns is approaching. We often fill up details as contained in our Form 16 and omit other relevant information which needs disclosure. Annual Information Returns (AIR) is one such area which is mostly not provided by us in our ITR.
What is Annual Information Returns (AIR)?
Income Tax Authority requires us to submit details of certain high-value transaction that we have undertaken during the previous year (i.e. the financial year for which the Income Tax Returns is being submitted).
You can choose to ignore it, but keep in mind that these information is already available with the Income Tax Authority. Your Bank, Mutual Fund Asset Management Company, Credit Card Issuer, Depository Participant, etc have already provided details of your transactions to the Authority. If you do not provide the relevant information in your Income Tax Return, chances are high that your case may be referred for scrutiny.
What is the criteria for disclosing Annual Information Returns (AIR) transactions?
The details of following transactions, if any, done by you during the previous financial year needs to be provided.
- Cash deposits aggregating Rs.10 Lacs or more in any savings account in any bank.
- Credit Card Payments aggregating Rs. 2 Lacs or more in the year.
- Total investment of Rs. 2 Lacs or more for acquiring units of any Mutual Fund Scheme.
- Total investment of Rs. 5 Lacs or more for acquiring bonds or debentures.
- Total investment of Rs. 5 Lacs or more for acquiring RBI bonds.
- Total investment of Rs. 1 lac or more for acquiring shares issued by any single company.
- Purchase or Sale of immovable property valued at Rs. 30 Lacs or more.
Whether you are filing your income tax return in paper form or are e-filing, if you fulfill any of the above mentioned criteria, then you should provide the details in Annual Information Report (AIR) in your ITR form.