(a) whether the Central Board of Direct Taxes is preparing to widen tax
net by making service providers to compulsorily inform income-tax department
in case of hefty bills on purchases;
(b) if so, the details thereof; and
(c) the manner in which it would be ensured to protect genuine persons ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANDRAO V. ADSUL)
(a) The Finance Act, 2003 has inserted a new section 285BA in the Income-tax
Act providing that any assessee, who enters into any prescribed financial
transaction with any other person, shall furnish an Annual Information Return in
respect of such financial transactions entered into by him during the financial year.
The above section shall be applicable from the assessment year 2004-2005.
(b)&(c) The format of the Annual Information Return and the details of the financial
transactions are yet to be prescribed.