AIR Reporting Needed ?

Hi,

1. Section 285 creates obligation on the specified person who is reponsible to maintain the books of accounts to report to Income tax authority to report on the specified financial transaction which is registered or recorded by him.

2. In your case Bank is the reporting authority and not you.

3. Reportable transaction is Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year.

4. Only the aggregate of all the payments by a person to the credit card company is required to be reported as one transaction and date of transaction is to be the last date of the financial year.

5. No tax is leviable on this.

6. Purpose is to track high value transaction to track the tax evaisioner.