What changed
RBI reminded authorized banks and institutions to submit Annual Information Returns for savings bonds issued, covering FY 2004-05. The return must include data for 6.5% Savings Bonds (Non-Taxable) from April 1, 2004 to scheme closure, and for 8% Savings (Taxable) Bonds for the full financial year.
What it means for you
Banks must ensure timely compliance with tax reporting requirements to avoid penalties. This affects all entities issuing government savings bonds, requiring them to track aggregate receipts per person and file returns with income tax authorities.
What you must do
- File Annual Information Return for savings bonds if not already done, by August 31, 2005.
- Include all persons (individuals, HUFs, companies, etc.) receiving ₹5 lakh or more in aggregate during FY 2004-05.
- For 6.5% Savings Bonds (Non-Taxable), report data from April 1, 2004 until scheme closure.
- For 8% Savings (Taxable) Bonds, report data for the full financial year April 1, 2004 to March 31, 2005.
- Acknowledge receipt of this circular by fax to the provided numbers.
Who it affects
State Bank of India and associate banks, 17 nationalised banks, UTI Bank, ICICI Bank, HDFC Bank, IDBI Bank, Stock Holding Corporation of India Ltd., All entities authorized to issue government savings bonds
What is the threshold for filing the Annual Information Return?
The return must be filed if the aggregate amount received from a person is ₹5 lakh or more in a financial year (April 1 to March 31).
Which bonds are covered under this requirement?
The circular covers 6.5% Savings Bonds, 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds, 2003. For the non-taxable bonds, data from April 1, 2004 till scheme closure is required; for taxable bonds, the full FY 2004-05.
What is the deadline for filing?
The Annual Information Return must be submitted on or before August 31, 2005.