Income Tax Act

Official PDF pages 566–570

SOURCE PDF PAGE 566
Furnishing of information or documents by an Indian concern in certain cases.
506.   Where,––
( a )   any share of, or interest in, a company or an entity registered or incorpo -
rated outside India derives, directly or indirectly, its value substantially
from the assets located in India, as referred to in section 9(10)( a ); and
( b )   such company or entity, as the case may be, holds, directly or indirectly,
such assets in India through, or in, an Indian concern,
then, such Indian concern shall, for the purposes of determination of any income
accruing or arising in India under the said section, furnish within prescribed pe -
riod to the prescribed income-tax authority the information or documents in such
manner, as may be prescribed.
Submission of statements by producers of cinematograph films or persons
engaged in specified activity.
507 .   (1) Any person carrying on the production of a cinematograph film or
engaged in any specified activity, or both, during the whole or any part of any
tax year shall, furnish within such period, a statement in such form and in such
manner, to the prescribed income-tax authority as may be prescribed.
(2) The statement referred in sub-section (1) shall contain particulars of all payments
of over   `   50000 in the aggregate made by him or due from him to each such person
as is engaged by him in such production or specified activity.
(3) For the purposes of this section, the expression “specified activity” means any
event management, documentary production, production of programmes for
telecasting on television or over the top platforms or any other similar platform,
sports event management, other performing arts or any other activity as the Central
Government may, by notification, specify.
Obligation   to   furnish   statement   of   financial   transaction   or   reportable
account.
508 .   (1) Any person, being—
( a )   an assessee; or
( b )   the prescribed person, in the case of an office of Government; or
( c )   a local authority or other public body or association; or
( d )   the Registrar or Sub-Registrar appointed under section 6 of the Regis -
tration Act, 1908 (16 of 1908); or
( e )   the registering authority empowered to register motor vehicles under
Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988); or
( f )   the Director General as referred to in section 2( a ) of the Post Office Act,
2023 (43 of 2023); or
( g )   the Collector referred to in section 3( g ) of the Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013 (30 of 2013); or
( h )   the recognised stock exchange referred to in section 2( f ) of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); or
( i )   an officer of the Reserve Bank of India, constituted under section 3 of
the Reserve Bank of India Act, 1934 (2 of 1934); or

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( j )   a depository referred to in section 2(1)( e ) of the Depositories Act, 1996
(22 of 1996); or
( k )   a prescribed reporting financial institution; or
( l )   any other person, as may be prescribed,
who is responsible for registering, or, maintaining books of account or other doc -
ument containing a record of any specified financial transaction or any reportable
account, as may be prescribed, under any law in force, shall furnish a statement
regarding such specified financial transaction or such reportable account, which
is registered or recorded or maintained by him and information relating to which
is relevant and required for this Act, to the income-tax authority or such other au -
thority or agency, as may be prescribed.
(2) The statement referred to in sub-section (1) shall be furnished for such period,
within such time and in the form and manner, as may be prescribed.
(3) In sub-section (1), “specified financial transaction” means any transaction—
( a )   of purchase, sale or exchange of goods or property or right or interest in
a property; or
( b )   for rendering any service; or
( c )   under a works contract; or
( d )   by way of an investment made or an expenditure incurred; or
( e )   for taking or accepting any loan or deposit,
as may be prescribed.
(4) The Board may prescribe different values for different transactions specified in
sub-section (3) for different persons having regard to the nature of such transaction.
(5) If the prescribed income-tax authority finds a defect in the statement furnished
under sub-section (1), he may intimate the defect to the person furnishing such state -
ment, to rectify the defect within thirty days from the date of such intimation, and
at his discretion, extend the said period upon an application made for this purpose.
(6) If the defect mentioned in sub-section (5) remains unrectified within the initial
period of thirty days or extended period as applicable, then, the provisions of this Act
shall apply as if such person had furnished inaccurate information in the statement,
irrespective of anything contained in any other provision of this Act.
(7) If a person required to furnish a statement under sub-section (1) fails to do
so within the specified time, the prescribed income-tax authority may serve upon
such person a notice requiring him to furnish such statement, within a period not
exceeding thirty days from the date of service of such notice, and he shall furnish
the statement within the time specified therein.
(8) If a person, having furnished a statement under sub-section (1), or in pursuance
of a notice issued under sub-section (7), becomes aware of any inaccuracy in the
information provided, he shall within ten days, inform the prescribed income-
tax authority or other authority or agency referred to in sub-section (1), of the

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inaccuracy and furnish the correct information in such manner, as may be
prescribed.
(9) The Central Government may, specify by rules,—
( a )   the persons referred to in sub-section (1) to be registered with the pre -
scribed income-tax authority;
( b )   the nature of information and the manner in which such information
shall be maintained by the persons referred to in clause ( a ); and
( c )   the due diligence to be carried out by the persons for the identification
of any reportable account referred to in sub-section (1).
Obligation to furnish information on transaction of crypto-asset.
509 .   (1) Any person, being a reporting entity, as may be prescribed, in respect of
a crypto-asset, shall furnish information in respect of a transaction of such
crypto-asset in a statement, for such period, within such time, in such form and
manner and to such income-tax authority, as may be prescribed.
(2) Where the prescribed income-tax authority considers that the statement furnished
under sub-section (1) is defective, he may intimate the defect to the person who
has furnished such statement and give him an opportunity of rectifying the defect
within thirty days from the date of such intimation or such further period as may
be allowed, and if the defect is not rectified within such period, the provisions of
this Act shall apply as if such person had furnished inaccurate information in the
statement.
(3) Where a person who is required to furnish a statement under sub-section (1) has
not furnished the same within the specified time, the prescribed income-tax authority
may serve upon such person a notice requiring him to furnish such statement within
a period not exceeding thirty days from the date of service of such notice and he
shall furnish the statement within the time specified in the notice.
(4) If any person, having furnished a statement under sub-section (1), or in pursuance
of a notice issued under sub-section (3), comes to know or discovers any inaccuracy
in the information provided in the statement, he shall within ten days inform the
prescribed income-tax authority, the inaccuracy in such statement and furnish the
correct information in such manner as may be prescribed.
(5) The Central Government may, by rules prescribe—
( a )   the persons referred to in sub-section (1) to be registered with the pre -
scribed income-tax authority;
( b )   the nature of information and the manner in which such information
shall be maintained by the persons referred to in clause ( a ); and
( c )   the due diligence to be carried out by the persons referred to in sub-section
(1) for the purpose of identification of any crypto-asset user or owner.
(6) For the purposes of this section, the expression “crypto-asset” shall have the
meaning assigned to it in section 2( 111 )( d ).
Annual information statement.
510 .   (1) The prescribed income-tax authority or the person authorised by such
authority, shall upload in the registered account of the assessee an annual

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information statement in such form and manner, within such time and along with
such information, which is in the possession of an income-tax authority, as may be
prescribed.
(2) In sub-section (1), “registered account” means the electronic filing account reg -
istered by the assessee in the web portal, as may be designated by the prescribed
income-tax authority or the person authorised by such authority.
Furnishing of report in respect of international group.
511 .   (1) Every constituent entity resident in India, shall, if it is constituent of an
international group, the parent entity of which is not resident in India, notify
the prescribed income-tax authority in the form and manner, on or before such
date, as may be prescribed,—
( a )   whether it is the alternate reporting entity of the international group; or
( b )   the details of the parent entity or the alternate reporting entity, if any, of
the international group, and the country or territory of which the said
entities are resident.
(2) Every parent entity or the alternate reporting entity, resident in India, shall,
for every reporting accounting year, in respect of the international group of which
it is a constituent, furnish a report, to the prescribed income-tax authority within
twelve months from the end of the said reporting accounting year, in such form and
manner, as may be prescribed.
(3) In sub-sections (2) and (4), the report in respect of an international group shall
include—
( a )   the aggregate information in respect of the amount of revenue, profit or
loss before income-tax, amount of income-tax paid, amount of income-tax
accrued, stated capital, accumulated earnings, number of employees and
tangible assets not being cash or cash equivalents, with regard to each
country or territory in which the group operates;
( b )   the details of each constituent entity of the group including the country
or territory in which such constituent entity is incorporated or organised
or established and the country or territory where it is resident;
( c )   the nature and details of the main business activity or activities of each
constituent entity; and
( d )   any other information, as may be prescribed.
(4) A constituent entity of an international group, resident in India, other than the
entity referred to in sub-section (2), shall furnish the report referred to in the said
sub-section, in respect of the international group for a reporting accounting year
within the period, as may be prescribed, if the parent entity is resident of a country
or territory,—
( a )   where the parent entity is not obligated to file the report of the nature
referred to in the said sub-section; or
( b )   with which India does not have an agreement providing for exchange of
the report of the nature referred to in the said sub-section; or

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( c )   where there has been a systemic failure of the country or territory and
such failure has been intimated by the prescribed income-tax authority
to such constituent entity.
(5) If there are more than one such constituent entities of the group, resident in
India, the report as mentioned in sub-section (4) shall be furnished by any one
constituent entity, if—
( a )   the international group has designated such entity to furnish the report
as per sub-section (2) on behalf of all the constituent entities resident in
India; and
( b )   the information has been conveyed in writing on behalf of the group to
the prescribed income-tax authority.
(6) The provisions of sub-sections (4) and (5) shall not apply, if—
( a )   an alternate reporting entity of the international group has furnished a
report of the nature referred to in sub-section (2), with the tax authority
of the country or territory in which such entity is resident, on or before
the date specified by that country or territory; and
( b )   the following conditions are satisfied:—
( i )   the said report is required to be furnished under any law in force
in the said country or territory;
( ii )   the said country or territory has entered into an agreement with
India providing for exchange of the said report;
( iii )   the prescribed income-tax authority has not conveyed any systemic
failure in respect of the said country or territory to any constituent
entity of the group that is resident in India;
( iv )   the said country or territory has been informed in writing by the
constituent entity that it is the alternate reporting entity on behalf
of the international group; and
( v )   the prescribed income-tax authority has been informed by the entity
referred to in sub-sections (4) and (5) as per sub-section (1).
(7) The prescribed income-tax authority may, for determining the accuracy of the
report furnished by any reporting entity, issue notice in writing, requiring the entity
to produce such information and document as specified in the notice within thirty
days of the date of receipt of the notice and such period may be extended by up to
an additional thirty days upon application by the entity.
(8) The provisions of this section shall not apply to an international group for an
accounting year, if the total consolidated group revenue, as per the consolidated
financial statement for the accounting year preceding such accounting year, does
not exceed the prescribed amount.
(9) The provisions of this section shall be applied as per such guidelines and subject
to such conditions, as may be prescribed.
(10) For the purposes this section,—
( a )   “accounting year” means,—