Post offices may have to file returns

The revenue department is considering asking post offices to file annual information returns.

This follows concerns that people may be parking their funds in savings instruments offered by the postal department in an attempt to avoid taxes.

Finance ministry officials said post offices could be asked to file returns on savings instruments like term deposits, National Savings Certificate or Kisan Vikas Patra above a certain threshold, since the intention is to seek information on high income category persons.

Term deposits offered by the postal department are exempt from tax deducted at source.

At present, third party information under AIR can be sought from the following: banks, companies issuing credit cards, trustees of a mutual fund, company or institution issuing bonds or debentures, company issuing shares through a public or rights issue, registrar and sub-registrar of properties and the Reserve bank of India.

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