1. Statement of Financial Transaction
CA Yash Nagar

2. Agenda
Background
Provisions in Act and Rules
Procedures
Issues

3. Background
The Income Tax Wing of Intelligence and Criminal Investigation
Gather intelligence
Criminal Investigation work
Data Analysis, mining and generation
Earlier known as Annual Information Return (AIR)

4. Section 285BA w.e.f 01/04/2004
Under the existing procedure, the Central Information Branch (CIB) collects information relating to financial transactions from various sources. Information is also received through the statement submitted under Rule 114D from persons who enter into transactions in relation to which Permanent Account Number is to be compulsorily quoted. It has been noticed that there are several hurdles in the collection of information by the CIB, and often the coverage of sources is incomplete.
In view of the above factors, it has been proposed to provide a mechanism wherein the flow of information regarding the material financial transactions entered into by a taxpayer with other persons is automatic so that the same can be utilised for widening and deepening of the tax base.
It is proposed to insert a new section 285BA to provide that any assessee, who enters into any financial transaction, as may be prescribed, with any other person, shall furnish, within the prescribed time, an annual information return in such form and manner, as may be prescribed, in respect of such financial transactions entered into by him during any previous year.

5. Second Responsibility
Section 139A and Rule 114B.
Particulars
Qualification
Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any.
Amount exceeding two lakh rupees per transaction:
First Responsibility
Second Responsibility

6. Rule 114C – Any person in rule 114B
who, in relation to a transaction specified in rule 114B, has received any document shall ensure after verification that permanent account number has been duly and correctly mentioned therein or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.
(2) Any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule 114B, who, in relation to a transaction specified in the said Sl. No., has issued any document shall ensure after verification that permanent account number has been correctly furnished and the same shall be mentioned in such document, or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.]
(3) The person referred to in sub-rule (1) or sub-rule (2) who has received any document in which permanent account number is mentioned or as the case may be, a declaration in Form No.60 has been furnished, shall ensure that the valid permanent account number or the fact of furnishing of Form No.60, is duly mentioned in the records maintained for the transactions referred to in rule 114B and the permanent account number or the details of Form No.60 are linked and mentioned in any information furnished to the income-tax authority or any other authority or agency under any provision of the Act or any rule prescribed therein.]

7. Provisions in Act and Rules

8. Section 285BA

9. Rule 114E

10. 271FA and 271FAA

11. Procedure - Registration
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12. Guide

13. Issues and Future