vinayak (accounts executive) (125 Points)
25 March 2015I was checking for high value transactions for Fixed Deposit more than 5 lakhs in a year?
I could not find the circular where AIR or high value transaction will be reported to IT by banks
if FD's are more than 5 Lakhs in a Year?
Can anyone clarify this?
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 26 March 2015
Hello,
The AIR is required to be furnished by specified persons in respect of specified transactions registered or recorded by them during a financial year. The list of such persons and the specified transactions is as follows
| Sl. No. (1) | Class of Person(2) | Nature and Value of transaction(3) |
| 1. | A Banking Company 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). | Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank |
| 2. | A Banking Company 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) or any other Company or institution issuing credit card. | 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. |
| 3. | A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorized by the trustee in this behalf. | Receipt from any person of an amount of two lakh rupees or more for acquiring units of that fund. |
| 4. | A Company or institution issuing bonds or debentures. | Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the Company or institution. |
| 5. | A Company issuing shares through public or rights issue. | Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the Company. |
| 6. | Registrar or Sub Registrar appointed under section 6 of the Registration Act, 1908 | Purchase or sale by any person of immoveable property valued at thirty lakh rupees or more. |
| 7. | A person being an officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 who is duly authorized by the Reserve Bank of India in this behalf. | Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India. |
Ileana Lyardson
(Student MBA)
(26 Points)
Replied 06 April 2015
The IT department has mandated several transactions over Rs 1 lakh to be reported to it by specific persons/ entities which include banks accepting deposits or issuing credit cards/ companies accepting deposits or issuing shares/ mutual funds / companies issuing bonds or debentures/ registrar or sub-register registering immovable properties/ RBI officer.
The transactions listed are Rs. 10 lakh p.a or more in deposits/ credit card payments worthRs.2 lakh p.a or more/ MF investments worth Rs. 2 lakh p.a or more/ investment in bonds/debentures worth Rs.5 lakh or more/ investment in shares worth Rs. 1 lakh p.a or more/ purchase or sale by any person of immoveable property valued at Rs.30 lakh or more/ Receipt of Rs.5 lakh rupees or more in a year for bonds issued by the Reserve Bank of India.
A fixed deposit will not form part of AIR. But banks will report interest earned on fixed deposits along with tax deducted on it to Income Tax Department.
Know more about interest rates, taxability and the other features on fd provided by banks.
CAclubindia
