The Hindu Business Line : CBDT enables online furnishing of annual information return

THE Finance Ministry has eased the procedure for furnishing of annual information return (AIR) to the Income-Tax Department. The Central Board of Direct Taxes (CBDT) has allowed Government agencies and other assessees who are obliged to furnish AIR to submit such returns through online transmission of electronic data under digital signatures.

"The basic idea behind the change in procedure is to provide a facility of online filing of AIR. The rules have been amended to facilitate online submission. There has however been no expansion in the scope of transactions or entities covered under the AIR," a senior revenue department official said.

The official also said that an AIR administrator, not below the rank of a Commissioner, would specify the server to which the online transmission could be made.

The CBDT is relying on AIR to enlarge their information base on high-value transactions. Such returns are expected to enable the tax department to detect tax evasion in a non-intrusive manner.

The first set of AIRs are expected to be furnished by certain categories of persons (which includes Government agencies, banks, mutual funds, registrars) by August 31 for specified transactions recorded or registered with them during financial year 2004-05. In all seven categories of entities/persons and transactions above certain specified value are currently under the scope of AIR.

Official sources said that the income-tax rules have now been amended to empower the CBDT to appoint an AIR Administrator.

The day-to-day administration of AIR would rest with the AIR administrator, who would also specify the procedures, data structures, formats and standards for ensuring secure capture and transmission of data. The AIR administrator would also be responsible for evolving and implementing appropriate security, archival and retrieval policies.

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