Income Tax Act, 2025
Section 4: Ins. by Act 41 of 1975, s. 76 (w.e.f. 11976).
4. Ins. by Act 41 of 1975, s. 76 (w.e.f. 11976).
5. Subs. by Act 10 of 2000, s. 71, for “twenty-five thousand rupees” (w.e.f. 12001). Earlier it was subs. by Act 21 of
1998, s. 63, (w.e.f. 11999).
6. The words “as employee or otherwise” omitted by Act 13 of 1989, s. 24 (w.e.f. 11989).
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1[285BA. Obligation to furnish statement of financial transaction or reportable account. —
(1) Any person, being—
(a) an assessee; or
(b) the prescribed person in the case of an office of Government; or
(c) a local authority or other public body or association; or
(d) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16
of 1908); or
(e) the registering authority empowered to register motor vehicles under Chapter IV of the
Motor Vehicles Act, 1988 (59 of 1988); or
(f) the Post Master General as referred to in clause (j) of section 2 of the Indian Post Office
Act, 1898 (6 of 1898); or
(g) the Collector referred to in clause (g) of section 3 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013); or
(h) the recognised stock exchange referred to in clause (f) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); or
(i) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of
India Act, 1934 (2 of 1934); or
(j) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories
Act, 1996 (22 of 1996); or
(k) a prescribed reporting financial institution,
who is responsible for registering, or, maintaining books of account or other document containing a
record of any specified financial transaction or any reportable account as may be prescribed, under any
law for the time being in force, shall furnish a statement in respect of such specified financial transaction
or such reportable account which is registered or recorded or maintained by him and information relating
to which is relevant and required for the purposes of this Act, to the income-tax authority or such other
authority or agency as may be prescribed.
(2) The statement referred to in sub-section (1) shall be furnished for such period, within such time
and in the form and manner, as may be prescribed.
(3) For the purposes of sub-section (1), “specified financial transaction” means any—
(a) transaction of purchase, sale or exchange of goods or property or right or interest in a
property; or
1. Subs. by Act 25 of 2014, s. 76, for “section 285BA” (w.e.f. 12015). Earlier inserted by Act 32 of 2003, s. 98,
(w.e.f. 12005) and later on subs. by Act 23 of 2004, s. 63 (w.e.f. 12005).
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(b) transaction for rendering any service; or
(c) transaction under a works contract; or
(d) transaction by way of an investment made or an expenditure incurred; or
(e) transaction for taking or accepting any loan or deposit,
which may be prescribed:
Provided that the Board may prescribe different values for different transactions in respect of
different persons having regard to the nature of such transaction:
Provided further that the value or, as the case may be, the aggregate value of such transactions during
a financial year so prescribed shall not be less than fifty thousand rupees.
(4) Where the prescribed income-tax authority considers that the statement furnished under subsection (1) is defective, he may intimate the defect to the person who has furnished such statement and
give him an opportunity of rectifying the defect within a period of thirty days from the date of such
intimation or within such further period which, on an application made in this behalf, the said income-tax
authority may, in his discretion, allow; and if the defect is not rectified within the said period of thirty
days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in
any other provision of this Act, 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.
(5) Where a person who is required to furnish a statement under sub-section (1) has not furnished the
same within the specified time, the prescribed income-tax authority may serve upon such person a notice
requiring him to furnish such statement within a period not exceeding thirty days from the date of service
of such notice and he shall furnish the statement within the time specified in the notice.
(6) If any person, having furnished a statement under sub-section (1), or in pursuance of a notice
issued under sub-section (5), comes to know or discovers any inaccuracy in the information provided in
the statement, he shall within a period of ten days inform the income-tax authority or other authority or
agency referred to in sub-section (1), the inaccuracy in such statement and furnish the correct information
in such manner as may be prescribed.
(7) The Central Government may, by rules made under this section, specify—
(a) the persons referred to in sub-section (1) to be registered with the prescribed income-tax
authority;
(b) the nature of information and the manner in which such information shall be maintained by
the persons referred to in clause (a); and
(c) the due diligence to be carried out by the persons for the purpose of identification of any
reportable account referred to in sub-section (1).]
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1[286. Furnishing of report in respect of international group.—(1) Every constituent entity
resident in India, shall, if it is constituent of an international group, the parent entity of which is not
resident in India, notify the prescribed income-tax authority (herein referred to as prescribed authority) in
the form and manner, on or before such date, as may be prescribed,—
(a) whether it is the alternate reporting entity of the international group; or
(b) the details of the parent entity or the alternate reporting entity, if any, of the international
group, and the country or territory of which the said entities are resident.
(2) Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting
accounting year, in respect of the international group of which it is a constituent, furnish a report, to the
prescribed authority 2[within a period of twelve months from the end of the said reporting accounting
year], in the form and manner as may be prescribed.
(3) For the purposes of sub-section (2) 3[and sub-section (4)], the report in respect of an international
group shall include,—
(a) the aggregate information in respect of the amount of revenue, profit or loss before
income-tax, amount of income-tax paid, amount of income-tax accrued, stated capital, accumulated
earnings, number of employees and tangible assets not being cash or cash equivalents, with regard to
each country or territory in which the group operates;
(b) the details of each constituent entity of the group including the country or territory in which
such constituent entity is incorporated or organised or established and the country or territory where it
is resident;
(c) the nature and details of the main business activity or activities of each constituent entity; and
(d) any other information as may be prescribed.
(4) A constituent entity of an international group, resident in India, other than the entity referred to in
sub-section (2), shall furnish the report referred to in the said sub-section, in respect of the international
group for a reporting accounting year 3[within the period as may be prescribed], if the parent entity is
resident of a country or territory,—
3[(a) where the parent entity is not obligated to file the report of the nature referred to in subsection (2);]
4[(aa)] with which India does not have an agreement providing for exchange of the report of the
nature referred to in sub-section (2); or
(b) there has been a systemic failure of the country or territory and the said failure has been
intimated by the prescribed authority to such constituent entity:
Provided that where there are more than one such constituent entities of the group, resident in India,
the report shall be furnished by any one constituent entity, if,—
(a) the international group has designated such entity to furnish the report in accordance with the
provisions of sub-section (2) on behalf of all the constituent entities resident in India; and
(b) the information has been conveyed in writing on behalf of the group to the prescribed
authority.
Any person, being—
an assessee; or
the prescribed person in the case of an office of Government; or
a local authority or other public body or association; or
the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16
of 1908); or
the registering authority empowered to register motor vehicles under Chapter IV of the
Motor Vehicles Act, 1988 (59 of 1988); or
the Post Master General as referred to in clause
of section 2 of the Indian Post Office
Act, 1898 (6 of 1898); or
the Collector referred to in clause
of section 3 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013); or
the recognised stock exchange referred to in clause
of section 2 of the Securities
Contracts
Act, 1956 (42 of 1956); or
an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of
India Act, 1934 (2 of 1934); or
a depository referred to in clause
of sub-section
of section 2 of the Depositories
Act, 1996 (22 of 1996); or
a prescribed reporting financial institution,
who is responsible for registering, or, maintaining books of account or other document containing a
record of any specified financial transaction or any reportable account as may be prescribed, under any
law for the time being in force, shall furnish a statement in respect of such specified financial transaction
or such reportable account which is registered or recorded or maintained by him and information relating
to which is relevant and required for the purposes of this Act, to the income-tax authority or such other
authority or agency as may be prescribed.
The statement referred to in sub-section
shall be furnished for such period, within such time
and in the form and manner, as may be prescribed.
For the purposes of sub-section
transaction of purchase, sale or exchange of goods or property or right or interest in a
property; or
1. Subs. by Act 25 of 2014, s. 76, for “section 285BA” (w.e.f. 12015). Earlier inserted by Act 32 of 2003, s. 98,
(w.e.f. 12005) and later on subs. by Act 23 of 2004, s. 63 (w.e.f. 12005).
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transaction for rendering any service; or
transaction under a works contract; or
transaction by way of an investment made or an expenditure incurred; or
transaction for taking or accepting any loan or deposit,
which may be prescribed:
Provided that the Board may prescribe different values for different transactions in respect of
different persons having regard to the nature of such transaction:
Provided further that the value or, as the case may be, the aggregate value of such transactions during
a financial year so prescribed shall not be less than fifty thousand rupees.
Where the prescribed income-tax authority considers that the statement furnished under subsection
is defective, he may intimate the defect to the person who has furnished such statement and
give him an opportunity of rectifying the defect within a period of thirty days from the date of such
intimation or within such further period which, on an application made in this behalf, the said income-tax
authority may, in his discretion, allow; and if the defect is not rectified within the said period of thirty
days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in
any other provision of this Act, 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.
Where a person who is required to furnish a statement under sub-section
has not furnished the
same within the specified time, the prescribed income-tax authority may serve upon such person a notice
requiring him to furnish such statement within a period not exceeding thirty days from the date of service
of such notice and he shall furnish the statement within the time specified in the notice.
If any person, having furnished a statement under sub-section
The Central Government may, by rules made under this section, specify—
the persons referred to in sub-section
to be registered with the prescribed income-tax
authority;
the nature of information and the manner in which such information shall be maintained by
the persons referred to in clause
the due diligence to be carried out by the persons for the purpose of identification of any
reportable account referred to in sub-section
Every constituent entity
resident in India, shall, if it is constituent of an international group, the parent entity of which is not
resident in India, notify the prescribed income-tax authority (herein referred to as prescribed authority) in
the form and manner, on or before such date, as may be prescribed,—
whether it is the alternate reporting entity of the international group; or
the details of the parent entity or the alternate reporting entity, if any, of the international
group, and the country or territory of which the said entities are resident.
Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting
accounting year, in respect of the international group of which it is a constituent, furnish a report, to the
prescribed authority 2[within a period of twelve months from the end of the said reporting accounting
year], in the form and manner as may be prescribed.
For the purposes of sub-section
3[and sub-section
the aggregate information in respect of the amount of revenue, profit or loss before
income-tax, amount of income-tax paid, amount of income-tax accrued, stated capital, accumulated
earnings, number of employees and tangible assets not being cash or cash equivalents, with regard to
each country or territory in which the group operates;
the details of each constituent entity of the group including the country or territory in which
such constituent entity is incorporated or organised or established and the country or territory where it
is resident;
the nature and details of the main business activity or activities of each constituent entity; and
any other information as may be prescribed.
A constituent entity of an international group, resident in India, other than the entity referred to in
sub-section
where the parent entity is not obligated to file the report of the nature referred to in subsection
there has been a systemic failure of the country or territory and the said failure has been
intimated by the prescribed authority to such constituent entity:
Provided that where there are more than one such constituent entities of the group, resident in India,
the report shall be furnished by any one constituent entity, if,—
the international group has designated such entity to furnish the report in accordance with the
provisions of sub-section
on behalf of all the constituent entities resident in India; and
the information has been conveyed in writing on behalf of the group to the prescribed
authority.