Clause 508 - Obligation to furnish statement of financial transaction or reportable account.

Obligation to furnish statements of financial transactions mandates mandatory reporting to tax authorities with prescribed timelines and rectification duties.

Any prescribed person who registers or maintains records of specified financial transactions or reportable accounts must furnish a statement to the prescribed income-tax authority or agency in the form, manner and period as prescribed. Specified transactions include purchase, sale or exchange of goods or property, rendering services, works contracts, investments or expenditures, and loans or deposits, with the Board empowered to set different values by transaction and person. The authority may require rectification of defects within thirty days, treat unrectified defects as inaccurate information, issue notices for failure to furnish, and require correction of discovered inaccuracies within ten days; rules may prescribe registration, record-keeping and due diligence.