The Hindu : National : `All assessees need not file AIR for high-value spending'

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Monday, Nov 01, 2004

National

National

`All assessees need not file AIR for high-value spending'

NEW DELHI, OCT. 31. The Finance Minister, P. Chidambaram, said today that every assessee need not maintain accounts of his or her expenditure above Rs. 50,000 and file Annual Information Return (AIR) of high-value expenditure.

``There is no budgetary proposal that will require every taxpayer to file his annual expenses beyond Rs. 50,000,'' Mr. Chidambaram said in a letter to Rajeev Shukla, MP, who expressed apprehensions over the AIR.

However, certain assessees and government agencies, which are responsible for registering or recording financial transactions under law, shall furnish AIR.Section 285-BA of the Income Tax Act, which was substituted by the Finance Act 2004, provides for mandatory filing of AIR for expenditures above Rs. 50,000 annually. But it does not ``require every assessee to maintain accounts of his expenditure beyond Rs. 50,000.''

The Central Board of Direct Taxes (CBDT) is yet to prescribe the guidelines on AIR, which would cover only ``certain high-value transactions.''

The CBDT has desired that the provision for temporary attachment of property be used in ``suitable cases'' where, during the assessment proceedings, it becomes clear that the recovery of demand will be a problem.

``This step has been taken in the light of mounting tax arrears, which touched Rs. 87,885 crores till April 2004.''

The Government targets to recover Rs. 8,000 crores from undisputed and recoverable tax arrears.

Such recovery was part of the Additional Revenue Mobilisation (ARM) measures proposed in the Budget.

PTI

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