In a bid to check tax evasion, high-value transactions like purchase of property beyond Rs 30 lakh (Rs 3 million) and savings deposits of over Rs 10 lakh (Rs 1 million) will now come under income tax department's scanner with the government making it mandatory for registrars and banks to file annual information returns (AIR) on such transactions this year.

A finance ministry notification, issued on Thursday, made out seven categories -- banks, mutual funds, companies issuing shares as well as debentures, credit card providers, registrars and the Reserve Bank of India -- who will have to file AIR on high value transactions from this financial year.

So if your credit card payments are over Rs 2 lakh (Rs 200,000) in a year, you will be the taxman's target.

If your investments in bonds and debentures are over Rs 5 lakh (Rs 500,000), investment in mutual funds are over Rs 2 lakh and you have bought shares worth over Rs 1 lakh (Rs 100,000), then again you will come under the tax scanner.

The RBI will also be required to file AIR on sale of RBI bonds of Rs 5 lakh and above to any person, it said.

The registrar and sub-registrar would have to file AIR in case of purchase or sale of any immovable property of Rs 30 lakh, it said.

According to the notification, banks would have to file AIR on deposits in savings account beyond Rs 10 lakh. The credit issuers will have to furnish AIR on all card transactions beyond Rs 2 lakh.

Finance Minister P Chidambaram had announced in this year's budget that select categories would have to file AIR for high value transactions as part of efforts to widen the tax net and check evasion.

Individual assesses need not file AIR

Earlier there was a lot of confusion and fear in the minds of income tax payers over the annual information return which will record high value transactions above Rs 50,000.

It was thought that if you buy anything of high value you will have to keep a record of it and attach it along with your next income tax return.

But the finance ministry had said in November that every income tax payer would not have to maintain accounts of his spending above Rs 50,000 and file an AIR of high-value expenses.

He said that there is no provision in the Budget for such a return to be filed by all those whose spendings go beyond Rs 50,000 annually.

However, some assesses and government bodies (named above by the government on Thursday), who are responsible for registering or recording financial transactions under law, will have to furnish the AIR for transactions aggregating or exceeding Rs 50,000 in a year.

The Section 285-BA of the Income Tax Act, which was substituted by the Finance Act 2004, states that the AIR should be filed for expenses above Rs 50,000 annually.

But the finance minister has said that this section does not mean that every assessee has to maintain a record of his expenditure beyond Rs 50,000. The Central Board of Direct Taxes, however, has not yet framed any guidelines for the implementation of this scheme.

The notification said mutual funds would be required to file AIR if investment being made was Rs 2 lakh or more to acquire units.

Companies or institutions issuing bonds or debentures would also be required to file the information returns if the investment was to the tune of Rs 5 lakh or more.

In the case of companies issuing shares through public or rights issue, the investment limit has been pegged at Rs 1 lakh or more.

The AIR in a prescribed format on a computer readable media like floppy, CD-ROM, DVD along with a summary sheet on paper, would have to be furnished on or before August 31 immediately following the fiscal in which the transaction date is registered or recorded.

The AIR is to be furnished to the Central Information Branch or any agency authorised by the Central Board of Direct Taxes.