What changed
RBI issued a follow-up circular on November 22, 2005, reminding banks of their obligation under Section 285BA of the Income Tax Act, 1961. It specifically asks banks to confirm that all authorised branches have filed the Annual Information Return for bond subscriptions of ₹5 lakh or more received from any person during April 1, 2004 to March 31, 2005.
What it means for you
Banks must ensure strict compliance with tax reporting requirements for high-value bond issuances. This circular signals that RBI is actively monitoring adherence to earlier instructions and expects immediate confirmation of filing. Non-compliance could invite regulatory or tax scrutiny.
What you must do
- Verify that all authorised branches have filed the Annual Information Return for bond subscriptions of ₹5 lakh or more received during FY 2004-05.
- Submit immediate confirmation to RBI as directed in the circular.
- Review internal processes to ensure timely filing of such returns in future periods.
Who it affects
State Bank of India and associate banks, 17 nationalised banks, UTI Bank Ltd, ICICI Bank Ltd, HDFC Bank Ltd, IDBI Bank Ltd, Stock Holding Corporation of India Ltd
What is the threshold for reporting under this circular?
The circular applies when the aggregate amount received from a person for Savings Bonds is ₹5 lakh or more in a financial year.