How to Submit Form 61A on the Income Tax Portal

Form 61A, or the Annual Information Return (AIR), is essential for individuals and businesses in India. It mandates reporting high-value transactions to combat tax evasion and enhance financial transparency. 

Covering property sales, share dealings, and mutual fund investments, timely and accurate submission of form 61A is crucial for regulatory compliance and a healthy financial environment.

Here are the steps to submit Form 61A online:

1. Download Form 61A from the Income Tax Portal (incometaxindia.gov.in)

2. Fill it out and save the document

3. Log in to the portal using your credentials (User ID, authorised PAN, or Aadhaar ID)

4. Navigate to the 'e-file' section and upload the saved Form 61A

5. The screen will display details like reporting entity PAN, form name, and reporting entity category

6. Attach a .zip format file of Form 61A along with your signature file

7. Click on the 'Upload' button

Once completed, a confirmation message with the upload status will appear on your screen.

Here’s a list of entities who must furnish Form 61A under the Income Tax Act: 

• Co-operative Banks

• Company issuing shares

• Non-banking Financial Companies (NBFCs) 

• Banking company

• Persons liable for audit u/s 44AB of the Income Tax Act, 1961

• Listed companies purchasing their securities u/s 68 of Companies Act, 2013

• Nidhi Companies referred u/s 406 of the Companies Act, 2013

• Inspector-General / Registrar / Sub-Registrars appointed under the Registration Act, 1908

• Trustees of a Mutual Fund or such other person managing the affairs of the MF

• Banking companies, co-operative banks or any other companies or institutions issuing a credit card

Let’s now take a look at the kinds of transactions recorded in Form no. 61A of the Income Tax Act: 

• Cash deposits of over ₹10 Lakhs made in a financial year to a person’s savings account maintained by a banking company 

• Credit card bill payments exceeding ₹2 Lakhs in a financial year

• Receipts from individuals of ₹2 Lakhs or more for purchases of mutual fund units

• Receipts from individuals of ₹5 Lakhs or more for debentures or bonds that a company or an institution issues

• Receipts from an individual for acquiring company shares of ₹1 Lakh or more

• Purchases of immovable properties of ₹30 Lakhs or more by an individual

• Sale of immovable properties of ₹30 Lakhs or more by an individual

• Receipts from an individual of ₹5 Lakhs or more in a financial year for bond investments issued by the RBI

If the information provided in the form is insufficient or incorrect, the income tax authorities will inform the reporting person or organisation. Once notified, the entity or person is provided 30 days to correct the information. This is applicable from the date of notification. 

On the other hand, if the error is found by the individual or entity, they must promptly inform the income tax authorities. This must be done within 10 days to make the necessary corrections free of charge. 

Here are the penalties that may be imposed for not correcting the details provided in the Form 61A: 

• ₹50,000 imposed on individuals and businesses for intentionally providing incorrect information

• Penalty of ₹500/day is imposed for providing inaccurate information from the initial due date to the due date specified in the notice 

• ₹1,000/day is charged for missing the due date mentioned in the notice 

• ₹50,000 is imposed if the business or individual discovers an inaccuracy in the submitted information and does not notify the authorities in 10 days