Guide to .. Tax Management ,Tax Planning and Tax Saving

BLOG on Income Tax Management for - AY 2022-23 & 2023-24

Obligation to Furnish Statement of Financial Transaction or Reportable Account [Section 285BA]

Section 285BA requires the furnishing of statement on account of the following:

(A)       Statement of financial transactions

(B)        Statement of reportable account

Furnishing Statement of Financial Transactions

(1) Persons who are obliged to Furnish Statement of Financial Transactions [Section 285BA (1)]

Any person, being—

(a)        an assessee; or

(b)        the prescribed person in the case of an office of Government or

(c)        a local authority or other public body or association; or

(d)     the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908; or

(e)     the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988; or

(f)      the Post Master General as referred to in section 2(j) of the Indian Post Office Act, 1898; or

(g)     the Collector referred to in section 3(g) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or

(h)     the recognised stock exchange referred to in section 2(f) of the Securities Contracts (Regulation) Act, 1956; or

(i)      an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934; or

(j)         a depository referred to in section 2(1)(e) of the Depositories Act, 1996.

(k)        a prescribed reporting financial institution; or

(l)         a person, other than those referred to in clauses (a) to (k), as may be prescribed,

who is responsible for registering, or, maintaining books of account or other document containing a record of any specified financial transaction as may be prescribed under any law for the time being in force, shall furnish a statement in respect of such specified financial transaction which is registered or recorded or maintained by him and information relating to which is relevant and required for the purposes of this Act, to the income-tax authority or such other authority or agency as may be prescribed.

(2) Period for which such statement is to filed, time limit and form of filing the same [Section 285BA(2)]:

The statement referred to in section 2XSBA(I) shall be furnished for such period, within such time and in the form and manner, as may be prescribed.

(3) Meaning of specified financial transaction [Section 285BA(3)]:

For the purposes of section 285BA(1), "specified financial transaction" means any—

(a)     transaction of purchase, sale or exchange of goods or property or right or interest in a property; or

(b)        transaction for rendering any service; or

(c)        transaction under a works contract; or

(d)        transaction by way of an investment made or an expenditure incurred; or

(e)        transaction for taking or accepting any loan or deposit, which may be prescribed:

Provided that the Board may prescribe different values for different transactions in respect of different persons having regard to the nature of such transaction [First proviso]

Provided further that the value or, as the case may be, the aggregate value of such transactions during a financial year so prescribed shall not be less than Rs. 50,000.

(4) Person to rectify the statement if found defective by income tax authority [Section 285BA(4)]:

Where the prescribed income-tax authority considers that the statement furnished under section 285BA( 1) is defective, he may intimate the defect to the person who has furnished such statement and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said income-tax authority may, in his discretion, allow; and if the defect is not rectified within the said period of thirty days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement.

(5) Income tax authority may issue notice to file statement if the same has not been filed within the specified time [Section 285BA (5)]:

Where a person who is required to furnish a statement under section 285BA(I) has not furnished the same within the specified time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such statement within a period not exceeding thirty days from the date of service of such notice and he shall furnish the statement within the time specified in the notice.

(6) Person to correct the information on discovery of inaccuracy in the information provided in the statement [Section 285BA (6)]:

If any person, having furnished a statement under section 285BA(1), or in pursuance of a notice issued under section 285BA(5), comes to know or discovers any inaccuracy in the information provided in the statement, he shall within a period of ten days inform the income-tax authority or other authority or agency referred to in section 285BA( 1), the inaccuracy in such statement and furnish the correct information in such manner as may be prescribed.

(7) The Central Government empowered to make rules in this regard [Section 285BA(7)]:

The Central Government may, by Rules 114E  made under this section, specify—

(a)     the persons referred to in section 285BA(I) to be registered with the prescribed income tax authority;

(b)     the nature of information and the manner in which such information shall be maintained by the persons referred to in clause (a) above.


You may also like ...

TallyPRIME-3.* Book (Advanced Usage)
TallyPrime Book @ Rs.600

| About Us | Privacy Policy | Disclaimer | Sitemap |
© 2024 : IncomeTaxManagement.Com