Registration under section 285BA of Income Tax

[Aditya Dhanania]

Dear Sir

Whether it is mandatory to Generate ITDREIN as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962 to any person who is liable for audit under section 44AB of the Act, if there is no cash receipt above 2 Lakhs.

AI Summary

Section 285BA of Income Tax Act: Financial Transaction Reporting Duties for Audited Individuals Explained. No Cash Over 2 Lakhs Exempt. A query was raised regarding the necessity of generating an ITDREIN under section 285BA of the Income Tax Act, 1961, particularly for individuals liable for audit under section 44AB, in cases where no cash receipt exceeds 2 lakhs. The respondent explained that section 285BA, effective from April 1, 2015, mandates certain entities to furnish statements of financial transactions or reportable accounts. These entities include government offices, local authorities, registrars, and financial institutions, among others. The section outlines the obligations, including the filing of statements and rectifying inaccuracies, with specific timeframes and conditions for compliance.