Section 285BA mandates
furnishing of annual information return by the specified persons in respect of
specified transactions within the time prescribed under sub-section (2)
thereof. Sub-section (5) of the section empowers the Assessing Officer to issue
notice if the annual information return has not been furnished by the due date.
The existing provisions contained in section 271
FA of the Income-tax Act provide that if a person who is required to furnish an
annual information return, as required under sub-section (1) of section 285BA,
fails to furnish such return within the time prescribed under that sub-section,
the income-tax authority prescribed under the said sub-section may direct that
such person shall pay, by way of penalty, a sum of one hundred rupees for every
day during which the failure continues.
It is proposed to amend the aforesaid section so
as to provide that if a person who is required to furnish an annual information
return, as required under sub-section (1) of section 285BA, fails to furnish
such return within the time prescribed under sub-section (2) thereof, the
income-tax authority prescribed under sub-section (1) of the said section may
direct that such person shall pay, by way of penalty, a sum of one hundred
rupees for every day during which the failure continues.
It is further proposed to provide that where
such person fails to furnish the return within the period specified in the
notice under sub-section (5) of section 285BA, he shall pay, by way of penalty,
a sum of five hundred rupees for every day during which the failure continues,
beginning from the day immediately following the day on which the time
specified in such notice for furnishing the return expires.
This amendment will take effect from 1st April,
2014.
