Rule 237 - Statement of financial transaction

Financial transaction statement furnishing. 237. (1) The statement of financial transaction required under section 508(1) shall be furnished for all transactions specified in sub-rule (2), for a financial year, in Form No. 165, verified in the manner indicated therein. (2) The statement shall be furnished by specified categories of reporting persons (including banks, post offices, companies issuing bonds/debentures/shares, mutual fund trustees, foreign-exchange dealers, property registrars, and persons receiving cash payments) in respect of transaction categories including, among others: cash payments for bank drafts, pay orders or banker's cheques; purchases of pre-paid instruments; cash deposits into or withdrawals from current accounts; cash deposits into other account types; time deposits; credit card bill payments; receipt of funds for bonds or debentures; share acquisitions; share buy-backs; sale of foreign currency; immovable property transactions; purchase of stamp paper; receipt of insurance premiums; and cash receipts from sale of goods or services - each category carrying its own specific reporting-person and monetary-threshold combination. (3) In applying these thresholds (other than for the share-buyback, foreign-currency-sale, and cash-sale-receipt categories), a reporting person shall aggregate all accounts of the same nature, aggregate all transactions of the same nature during the financial year, attribute the full transaction value to each holder of a jointly held account, and apply deposit and withdrawal thresholds separately. (4) Form No. 165 shall be furnished via online electronic transmission to a designated server under digital signature of the specified person (reporting persons who are a Post Master General, Registrar, or Inspector-General may instead furnish it on computer-readable media with a paper Form-V verification); the Board may designate an Information Statement Administrator (not below Joint Director rank) for day-to-day administration. (5) The statement shall be furnished on or before 31 May immediately following the financial year in which the transactions were registered or recorded. (6) Separate pre-filing statements concerning capital gains on listed-securities transfers, dividend distributions, and interest paid or credited shall be furnished by specified persons, in the form and at the frequency the Principal Director General or Director General of Income-tax (Systems) determines with Board approval. (7) Every reporting person shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of its Designated Director and Principal Officer and obtain a registration number; reporting persons, Designated Directors, Principal Officers and employees must follow procedures specified by their regulator and comply with section 508 and rules 159, 160, 161 and this rule. (8) The statement shall be signed, verified and furnished by the Designated Director in all cases, or, where the reporting person is a non-resident, by a person holding a valid power of attorney from the Designated Director. (9) For the purposes of this rule, defined terms include "Designated Director" (the person designated for overall compliance - a Managing/whole-time Director for a company, managing partner for a firm, proprietor for a proprietorship, managing trustee for a trust, or the controlling person for an AOP/BOI); "digital signature" (a certificate from an authorised Certifying Authority); "listed securities" (securities listed on a recognised Indian stock exchange); "Mutual Fund" (as in Schedule VII(20) and (21) to the Act); "Principal Officer" (an officer designated by the reporting person); "recognised clearing corporation" and "recognised stock exchange" and "securities" (as defined under the Securities Contracts (Regulation) Act, 1956 and its Regulations); and "Regulator" (a licensing, authorising, registering, regulating or supervising person, authority, or Government body).