In simple words, AIR is an report which includes some high value transactions done by a person and it is reported to the Income Tax Dept. It helps IT Dept. to take action against those who are not paying taxes or paying less taxes.
For a person, Bank is a very important specified person as Bank reports some of high value transaction to Income Tax Dept. Transactions such as value of FD in your account more than INR 2 lakh, cash deposit in your account equal to or exceeding INR 10 lakhs are some of the examples.
Specified persons and the specified transactions is as follows:
|S. No.||Class of Person (Specified Persons)||Nature and Value of transaction (Specified Transactions)|
|1||A Banking Company to which the Banking Regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).||Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank|
|2||A Banking Company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other Company or institution issuing credit card.||Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year.|
|3||A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorized by the trustee in this behalf.||Receipt from any person of an amount of two lakh rupees or more for acquiring units of that fund.|
|4||A Company or institution issuing bonds or debentures.||Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the Company or institution.|
|5||A Company issuing shares through public or rights issue.||Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the Company.|
|6||Registrar or Sub Registrar appointed under section 6 of the Registration Act, 1908||Purchase or sale by any person of immoveable property valued at thirty lakh rupees or more.|
|7||A person being an officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 who is duly authorized by the Reserve Bank of India in this behalf.||Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India.|