Amendment of section 285BA.
66. In section 285BA of the Income-tax Act, with effect from the 1st day of September, 2019,––
(i) in sub-section (1), for clause (k), the following clauses shall be substituted, namely:––
“(k) a prescribed reporting financial institution; or
(l) a person, other than those referred to in clauses (a) to (k), as may be prescribed,”;
(ii) in sub-section (3), the second proviso shall be omitted;
(iii) in sub-section (4), for the words “such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement”, the words “the provisions of this Act shall apply as if such person had furnished inaccurate information in the statement” shall be substituted.
Notes on Clauses:
Clause 66 of the Bill seeks to amend section 285BA of the Income-tax Act relating to obligation to furnish statement of financial transaction or reportable account.
Sub-section (1) of the said section, inter alia, specifies the persons who are required to furnish statement in respect of specified financial transaction or reportable account.
It is proposed to insert a new clause (l) in the said sub-section so as to provide that a person, other than those referred to in clauses (a) to (k), as may be prescribed, shall also be required to furnish a statement under the said section.
Second proviso to sub-section (3) of the said section specifies that the value or aggregate value of prescribed specified financial transaction during a financial year shall not be less than fifty thousand rupees.
It is further proposed to omit the said proviso.
Sub-section (4) of the said section, inter alia, provides that if the defect in the statement is not rectified within the time specified therein, the statement shall be treated as invalid.
It is proposed to amend the said sub-section so as to provide that if the defect in the statement is not rectified within the time specified therein, the provisions of the Act shall apply as if such person had furnished inaccurate information in the statement.
These amendments will take effect from 1st September, 2019.
