Submission of SFT-AIR for issue of Savings Bond by Banks u/s 285-BA – RBI advisory

Submission of SFT-AIR for issue of Savings Bond of Rs 5 lakh or more u/s 285-BA of Income Tax Act 1961- RBI advisory to Banks

Reserve Bank of India

Submission of Annual Information Return relating to issue of Bonds for ₹ 5 lakh or more under Section 285 BA of Income Tax Act, 1961 – Change thereof

RBI/2016-17/309
IDMD.CDD.No.3031/13.01.299/2016-17

May 25, 2017

The Chairman/ Managing Director
State Bank of India/Associate Banks/
17 Nationalised Banks/
UTI Bank Ltd., ICICI Bank Ltd.,
HDFC Bank Ltd., IDBI Bank Ltd./
Stock Holding Corporation of India Ltd.

Dear Sir/Madam

Submission of Annual Information Return relating to issue of Bonds for ₹ 5 lakh or more under Section 285 BA of Income Tax Act, 1961-Change thereof

Please refer to letter DGBA.CDD.13.01.299/H – 739 – 768/2005-06 dated August 5, 2005 on the captioned subject.

2. You have been authorized to issue Savings Bonds Notified by the Government of India on behalf of Reserve Bank of India. In this connection, you may be aware that the offices accepting deposits under these schemes are required to furnish Annual Information Return as contemplated in Section 285 BA of the Income Tax Act, 1961read with Rule 114E of the Income Tax Rules, 1962 to the concerned Income Tax Authorities before the due date i.e., August 31 of the year if the aggregate of the amount received from a person is ₹ 5 lakh or more in a year. In terms of Section 2 (31) of the Income Tax Act, 1961, a person has been defined to include (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of person or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical person, not falling with any of the preceding sub-clauses.

3. In this connection, we advise that Income Tax Department has brought about the undermentioned changes in the AIR (copy enclosed)

1. Name of the AIR has been changed as Statement of Financial Transaction
2. Limit of amount has been changed from ₹ 5 lakh or more to ₹ 10 lakh or more in a Financial Year
3. Date of Filing has been changed from August 31 of the immediately following Financial Year to May 31st

4. In view of the above, please submit the Statement of Financial Transaction to the Tax Authorities in respect of your bank/corporation as per the revised statement and procedure.

Yours faithfully,

(Shyni Sunil)
Deputy General Manager

Encls: as above