Urgent!!!!

Page no : 2

* Krishna * (CA Student) (6149 Points)
Replied 03 July 2011

Any person planning to buy jewellery worth Rs5 lakh and more or paying a life insurance premium of Rs50,000 or above, has to quote PAN (Permanent Account Number) from July 1. “As per the amendments in the income tax (I-T) rules, coming into effect from July 1, quoting PAN will be mandatory for any payment of Rs5 lakh and above for purchase of jewellery or insurance premium of Rs50,000 or above,” an I-T official confirmed.

The customer would need to submit copy of his PAN and quote it as well with the jeweller, while buying jewellery.

High-value purchase of jewellery, among valuables, have often been feared to be a much favoured route for circulation of black money and quoting of PAN would help the tax authorities in tracking such transactions.

Recently, the Reserve Bank of India had also asked the banks to consider the jewellers and bullion dealers as high-risk customers.

“So, to check any possible money laundering, this measure has been introduced,” the source said. From July 1, if a bank wants to issue a debit card to its customer, the latter has to quote PAN.

Till date it is applicable in the case of issuance of credit card.

The PAN will also become mandatory in the case of paying a life insurance premium of Rs50,000 and above.

Transactions that already require PAN include sale or purchase of any immovable property valued at Rs5 lakh or more, sale or purchase of vehicles other than two-wheelers and bank deposits exceeding Rs50,000.

Source: Hindustan Times Paper

* Krishna * (CA Student) (6149 Points)
Replied 03 July 2011

Return shall be furnished on or before August 31, immediately following the financial year in which the transaction is registered or recorded. Return should be furnished in Form No.65 to Commissioner of Income Tax (Central Information Branch)/ its authorised agency. It should be furnished through a floppy/cd/dvd by the responsible person as per the Act.

radhika rawat (student) (93 Points)
Replied 03 July 2011

is it compulsory to furnish the return through floppy or cd or dvd?????

we cant furnish through hard copy?????

A.K.Agrawal (Investments & Finance) (132 Points)
Replied 03 July 2011

Dear Pragnesh, In your list JEWELLARY purchase is absent. What about its status for AIR?

In UP STATE this limit is already 50th. in view of VAT

for ITAX also it is 50 th I recollect so.

* Krishna * (CA Student) (6149 Points)
Replied 03 July 2011

In my above post, i mentioned it as Form NO.65, it is wrong. Kindly read it as Form No.61A. In this Form 61A there are Part A and Part B. The AIR is to be submitted in Floppy/CD/DVD for both Part A and Part B and paper copy for Part A of Form 61A. I think it can also be sent through online through NSDL Website (tin-nsdl.com). For this one has to download AIR software from NSDL Website. Further information can be had from this link (https://tin-nsdl.com/airdownloads.asp)

CA Ravi Khandelwal (Business) (752 Points)
Replied 03 July 2011

Now dealers will not issue single invoice for more than Rs. 5 lakhs...!!!!

Pragnesh (AM - Taxation) (1259 Points)
Replied 05 July 2011

Dear All I have one good explanation on AIR, might be it will help you to understand the concept on AIR.

Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year. The due date of filing of the return is the 31st of August of the following year.

The ‘specified persons’ and the ‘specified transactions’ are listed in Rule 114E of the Income-tax Rules, 1962. Briefly, these are as under:
.
.

Sl. No. (1)	Class of Person(2)	Nature and Value of transaction(3)	Clarifications by Central Board of Direct Taxes vide Circular No.07/2005 dated 24thAug, 2005(4)
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	Only the aggregate of all the cash deposits in the savings account of a person to be reported as one transaction and the date of the transaction is to be the last date of the financial year i.e. 31.03.2005 in respect of FY 2004-2005.
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.	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 i.e. 31.03.2005 in respect of FY 2004-05.
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.	The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
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.	The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
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.	The amount actually received from the transacting party and not the amount relating to allotment is to be reported.
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.	There may be certain situations where the transaction in respect of property valued at thirty lakh rupees involves joint parties and value for one or more parties is less than rupees thirty lakh. In such situations, all such transactions are to be reported in respect of all the joint parties even though the value of transaction in the hands of one or more of the joint parties is less than the threshold limit.
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.	The aggregate of all the receipts from a person is required to be reported as one transaction and the date of the transaction is to be mentioned as the last date of the financial year i.e. 31.03.2005 in respect of FY 2004-05.

This is updated till 30th June 2011

Thanks

Pragnesh (AM - Taxation) (1259 Points)
Replied 05 July 2011

Later The Central Board of Direct Taxes (‘CBDT’) has amended Rule 114B of the Income-tax Rules, 1962 (‘Rules’) by notifying1 Income-tax (5th Amendment) Rules, 2011 in respect of furnishing of PAN for certain transactions with effect from 1 July 2011.

1. Payment for life insurance premium [Rule 114B(q)] :- Payment aggregating fifty thousand or more in a year to be made to an insurer4 towards life insurance premium.

2. Payment to dealer for purchase of bullion or jewellery [Rule 114B (r)] :-

* Payment of an amount aggregating INR 5 lakh or more at any one time; or
* Payment against a bill for an amount of INR 5 lakh or more for purchase of bullion or jewellery.