Substitution of new section for section 285BA

Section 63 of the Finance Act, 2004 deals with substitution of new section for section 285BA. Substitution of new section for section 285BA.

Substitution of new section for section 285BA.

63. For section 285BA of the Income-tax Act, the following sec­tion shall be substituted with effect from the 1st day of April, 2005, namely:—

‘285BA. Obligation to furnish annual information return.—(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 (16 of 1908); or

(e ) the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988); or

(f ) the Post Master General as referred to in clause (j ) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); or

(g ) the Collector referred to in clause (c) of section 3 of the Land Acquisition Act, 1894 (1 of 1894); or

(h ) the recognised stock exchange referred to in clause ( f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or

(i ) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); or

(j ) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996),

who is responsible for registering, or maintaining books of account or other documents containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return, in respect of such specified financial transaction which is registered or recorded by him during any financial year beginning on or after the 1st day of April, 2004 and information relating to which is relevant and required for the purposes of this Act, to the prescribed income-tax authority or such other authority or agency as may be prescribed.

(2) The annual information return referred to in sub-section (1) shall be furnished within the prescribed time after the end of such financial year, in such form and manner (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any computer readable media) as may be prescribed.

(3) For the purposes of sub-section (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 transactions:

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 fifty thousand rupees.

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

(5) Where a person who is required to furnish an annual informa­tion return under sub-section (1) has not furnished the same within the prescribed time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such return within a period not exceeding sixty days from the date of service of such notice and he shall furnish the annual informa­tion return within the time specified in the notice.".

© Copyright. Taxmann Publications Pvt. Ltd.

Section 63, The Finance Act, 2004.