Section 285BA of the Income Tax Act was introduced in 2020 to promote transparency in financial transactions and make compliance easier for taxpayers. This provision requires any person responsible for maintaining books of accounts or other documents containing information on financial transactions to furnish a statement of such transactions or accounts.
Applicability of Section 285BA
This provision applies to a wide range of persons, including individuals, HUFs, companies, partnerships, and trusts. However, it does not apply to transactions that are already reported to the tax authorities through other means.
Types of Transactions Covered
The transactions covered under this provision include puthe rchase or sale of goods or services, property transactions, investments, loans and advances, and other similar transactions. These transactions must be of a certain value to be reported under Section 285BA. The threshold for reporting varies depending on the type of transaction.
Reporting Requirements
The statement of financial transactions or reportable accounts must be furnished in the prescribed form and manner and within the time specified by the Central Board of Direct Taxes (CBDT). The statement must contain details such as the nature and value of the transaction, the name and PAN of the parties involved, and any other relevant information.
Penalties for Non-Compliance
Any person who fails to comply with the provisions of this section may be liable to pay a penalty. The penalty can be a fixed sum or a percentage of the value of the transaction, depending on the type of non-compliance.
Exceptions to Section 285BA
There are some exceptions to Section 285BA. For example, the provision does not apply to certain types of transactions, such as those that are exempt from tax or those that are subject to TDS or TCS. Additionally, some persons may be exempt from reporting under this provision if they fall under certain categories, such as small taxpayers or those with limited transactions.
Read more useful content:
- section 145 of income tax act
- section 10e of income tax act
- section 9 of the income tax act
- section 94b of income tax act
- section 206aa of income tax act
Here are some frequently asked questions (FAQs) about Section 285BA of the Income Tax Act:
Q: What is Section 285BA of the Income Tax Act?
A: Section 285BA is a provision that requires any person responsible for maintaining books of accounts or other documents containing information on financial transactions to furnish a statement of such transactions or accounts.
Q: WhTo whooes Section 285BA apply
A: This provision applies to a wide range of persons, including individuals, HUFs, companies, partnerships, and trusts.
Q: What types of transactions are covered under Section 285BA?
A: The transactions covered under this provision include purchthe ase or sale of goods or services, property transactions, investments, loans and advances, and other similar transactions.
Q: What is the threshold for reporting under Section 285BA?
A: The threshold for reporting varies depending on the type of transaction.
Q: What are the reporting requirements under Section 285BA?
A: The statement of financial transactions or reportable accounts must be furnished in the prescribed form and manner and within the time specified by the Central Board of Direct Taxes (CBDT).
Q: What happens if I don’t comply with Section 285BA?
A: Any person who fails to comply with the provisions of this section may be liable to pay a penalty.
Q: Are there any exceptions to Section 285BA?
A: Yes, there are some exceptions to Section 285BA. For example, the provision does not apply to certain types of transactions, such as those that are exempt from tax or those that are subject to TDS or TCS. Additionally, some persons may be exempt from reporting under this provision if they fall under certain categories, such as small taxpayers or those with limited transactions.
Q: How can I ensure compliance with Section 285BA?
A: It is important to be aware of the transactions that are covered under this section and to ensure that you comply with the provisions in a timely and accurate manner. You should also consult with a tax professional if you have any questions or concerns about reporting under this provision.
