Amendment of section 271FA
65. In section 271FA of the Income-tax Act, with effect from the 1st day of April, 2015,––
(i) in the marginal heading, for the words “annual information return”, the words “statement of financial transaction or reportable account” shall be substituted;
(ii) for the words “an annual information return”, the words “a statement of financial transaction or reportable account” shall be substituted;
(iii) for the word “return”, wherever it occurs, the word “statement” shall be substituted.
Notes on Clauses:
Clause 65 of the Bill seeks to amend section 271FA of the Income-tax Act relating to penalty for failure to furnish annual information return.
The existing provisions of section 271FA provides for penalty for failure to furnish an annual information return.
It is proposed to amend the said section so as to provide for penalty for failure to furnish statement of financial transaction or reportable account.
This amendment will take effect from 1st April, 2015.
