Updated on: May 22nd, 2024 4:18 PM

Form 61A of Income Tax Act

Form 61A is a crucial document used to report specified financial transactions under Section 285BA of the Income Tax Act, 1961, and Rule 114E of the Income Tax Rules, 1962. This form plays a vital role in helping the Income Tax Department identify high-value transactions and compare them with the income reported by individuals in their tax returns. By ensuring accurate reporting, Form 61A aids in detecting discrepancies and preventing tax evasion.

Form 61A of Income Tax

Form 61A reports specified financial transactions under Section 285BA of the Income Tax Act, 1961, and Rule 114E of the Income Tax Rules, 1962. This form is essential for reporting all specified financial transactions to the Income Tax Department. It enables the tax authorities to identify high-value transactions and compare them with the income reported by individuals in their income tax returns. If discrepancies are found, the tax department issues notices to the concerned individuals, helping to prevent tax evasion. Form 61A is reproduced below for reference:

Download Form 61A in PDF Format

Who Must File Form 61A?

The following persons or entities are required to file Form 61A when they engage in specified transactions: Persons liable for audit under Section 44AB of the Income Tax Act

• Banking Companies
• Co-operative Banks
• Post Master General of Post Offices
• Nidhi Companies, referred to in Section 406 of the Companies Act, 2013
• Non-Banking Financial Companies (NBFCs)
• Companies or Institutions issuing bonds or debentures
• Companies issuing shares
• Listed Companies (on a recognized stock exchange) purchasing their securities under Section 68 of the Companies Act 2013
• Trustees of Mutual Funds or other persons managing the affairs of the Mutual Fund
• Authorized Persons under FEMA (Dealers, Money Changers, Offshore Banking Units, or any other persons defined in FEMA, 1999)
• Inspector-General/Registrar/Sub-Registrar appointed under the Registration Act, 1908
• Banking companies, cooperative banks, or any other companies or institutions issuing credit cards

These entities must file Form 61A to report specified financial transactions to the Income Tax Department.

Specified Financial Transactions for filing Form 61A

All transactions undertaken by the "Specified Person" of the nature and value specified in the table below are classified as specified financial transactions. These transactions must be reported when filing Form 61A.

Specified Person	Type of Transaction	Amount Value (Rs.)
Person liable for audit under Section 44AB of the Income Tax Act	Sale by any person of goods or services of any nature	Receipt of cash exceeding Rs. 2 lakhs
Banking Company or Co-operative Bank	Payment made in cash for the purchase of: Bank drafts Pay orders (PO) Banker's cheque Pre-paid instruments issued by RBI	Aggregating Rs. 10 lakhs or more in a financial year
	Cash deposits or cash withdrawals (including bearer’s cheque)	Aggregating Rs. 50 lakhs or more in a financial year from one or more current account(s) of a person
Banking Company, Co-operative Bank, or Post Master General	Cash deposits (other than current accounts and time deposits) of a person	Aggregating to Rs. 10 lakhs or more in one or more accounts
Banking Company, Co-operative Bank, Post Master General, Nidhi Company, or NBFC	One or more time deposits (other than those made through the renewal of another time deposit) of a person	Aggregating to Rs. 10 lakhs or more in a financial year
Company or Institution issuing bonds or debentures	Receipt from any person for acquiring debentures/bonds issued by the company/institution (other than amounts received for the renewal of bonds/debentures)	Amount aggregating to Rs. 10 lakhs or more in a financial year
Company issuing shares	Receipt from any person acquiring shares (including share application money) issued by the company	Amount aggregating to Rs. 10 lakhs or more in a financial year
Listed Company (listed on a recognized stock exchange) purchasing its securities under Section 68 of the Companies Act 2013	Buyback of shares from any person (other than shares bought in the open market)	Amount or value aggregating to Rs. 10 lakhs or more in a financial year
Trustee of a Mutual Fund or other persons managing the affairs of the MF	Amount received for acquiring units of one or more schemes of mutual fund (other than amounts received on account of transfer from one scheme to another)	Receipt from any person aggregating to Rs. 10 lakhs or more in a financial year
Authorized Person under FEMA (Dealer, Money Changer, Offshore Banking Unit, or any other person defined in FEMA, 1999)	Receipt from any person from the sale of foreign currency, including any credit of such currency to a foreign exchange card, or expense in such currency through credit or debit card, or the issue of traveller’s cheque, draft, or any other instrument	Aggregate amount to Rs. 10 lakhs or more in a financial year
Inspector-General/Registrar/Sub-Registrar appointed under the Registration Act, 1908	Purchase or sale by any person of immovable property	Amount of Rs. 30 lakhs or more or valued by stamp duty valuation authority referred to in Section 50C at Rs. 30 lakhs or more
Banking company, cooperative bank, or any other company or institution issuing a credit card	Payment made by any person against bills raised in respect of one or more credit cards issued to that person	Aggregate amount of Rs. 1 lakh or more in cash or Rs. 10 lakhs or more by any other mode
Banking Company, Co-operative Bank, or Postmaster General	Cash deposits during 09th November, 2016 to 30th December, 2016	Amount aggregating to Rs. 12.50 lakhs or more in one or more current account(s) of a person or Rs. 2.50 lakhs or more in one or more accounts (other than a current account) of a person
Banking Company, Co-operative Bank, or Postmaster General	Cash deposits during 01st April, 2016 to 09th November, 2016	In respect of accounts that are reportable in the just above point

Different Parts of Form 61A

Form 61A consists of four parts:

• Part A: Contains statement-level information and is common for all transaction types.
  • Report Level Information: Depending on the transaction type, the report level information must be reported in one of the following parts:
• Part B: Reporting of aggregated financial transactions by the person.
• Part C: Reporting of bank accounts.
• Part D: Reporting of immovable property transactions.

Due Date/Time Limit to File Form 61A

The statement of the financial transaction must be furnished on or before the 31st of May, immediately following the financial year in which the transaction is registered or recorded by the specified person.

Penalty for Not Filing Form 61A

If a person required to furnish a statement of financial transaction under Section 285BA fails to do so: Within the prescribed time: The person shall be liable to pay a penalty under Section 271FA of Rs. 500 for every day during which the failure continues. After receiving a notice to file a statement under Section 285BA, The person shall be liable to a penalty under Section 271FA of Rs. 1000 per day, starting from the day immediately following the expiry of the time specified in the notice until the statement is filed. If a person receives a notice to file the statement, they must file it within 30 days from the date the notice is served.

Consequences of Filing Defective Form 61A

Suppose a reporting entity or individual discovers any inaccuracy or discrepancy in the information provided in Form 61A. In that case, they must contact the concerned income tax authority within 10 days to make corrections without any penalties. If the income tax authorities identify that the information furnished in Form 61A is defective or incomplete, they will notify the reporting entity or person. The reporting entity or person is then given 30 days from the date of intimation to rectify the information. The penalties defined in the Income Tax Act for not furnishing a corrected Form 61A are as follows:

• Deliberate Inaccuracy: Reporting entities and individuals are penalized Rs. 50,000 for deliberately providing inaccurate information.
• Failure to Inform Authorities: A penalty of Rs. 50,000 is imposed on reporting entities and individuals who discover inaccuracies in their data after submitting the statement but fail to inform the concerned authorities and furnish correct information within 10 days.
• Penalties for Delayed Correction: A penalty of Rs. 500 per day is imposed from the expiry of the original due date until the due date mentioned in the notice for default due to furnishing incorrect information.
• A penalty of Rs. 1,000 per day is imposed beyond the due date specified in the notice.

The concerned tax authority may extend the date to rectify details in case of default. However, if the reporting entity or person fails to rectify the information after receiving the notice, the statement in question (Form 61A) is treated as invalid.

How to Register for SFT Filing?

To file Specified Financial Transactions (SFT), the reporting person/entity must register with the Income Tax Department and generate an ITDREIN (Income Tax Department Reporting Entity Identification Number). Once generated, the ITDREIN cannot be deactivated. Steps to Register: Step 1: Log in to the e-filing website using the login ID to file the Income Tax Return of the reporting person/entity. Step 2: Click the "My Account" tab and select the "Reporting Portal" link to access the ‘Reporting Portal’ for first-time registration. Step 3: Enter the following details:

• Form Type
• Category
• Address of the reporting person/entity
• Details of the Principal Officer

Step 4: After successful submission, the ITDREIN is generated. The Principal Officer will receive an email confirmation on the registered email address and an SMS on the registered mobile number.

How to File Form 61A Online

To file Form 61A online, follow these steps:

• Download Required Tools: Visit the reporting portal under the “Resources” tab and download the prescribed schema, Report Generation and Validation Utility, and Generic Submission Utility.
• Generate SFT: Create the general and transaction-specific Specified Financial Transactions (SFT) in the specified format according to the preparation guidelines.
• Upload the SFT: Log in to the reporting portal using the PAN and password of the designated director.
• Upload the prepared and digitally signed SFT.
• Receive Acknowledgment: An “Acknowledgment Number” will be sent to the registered email ID upon successful filing.

Conclusion

Accurate and timely filing of Form 61A is essential for compliance with the Income Tax Act. Entities and individuals engaging in specified financial transactions must understand the importance of this form and the consequences of inaccuracies or delays in filing. By adhering to the guidelines and deadlines and utilizing the reporting portal effectively, taxpayers can ensure compliance and contribute to the tax system's integrity. Failure to do so can result in significant penalties, emphasizing the need for diligence in financial reporting.