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Form number 61A is the statement of specified financial transactions under Section 285BA (1) of the Income Tax Act, 1961.

What is Form 61A?

As a taxpayer in India, you need to fill different tax forms mandatorily. Form 61A comes under 114E of the Income Tax Rules, 1962, which specifies all high-value transactions that you should mention. It comes after the creation of the new concept called the Statement of the Financial Transactions (SFT). It was previously known as the Annual Information Return (AIR).

If you are confused about what is form 61a, all you need to do is go to Section 285BA of the Income Tax Act that mentions a detailed list of the reporting persons who have to fill this form. You can check your applicability and download this form on the Income Tax portal.

Thus, it is one of the critical steps for you if you fall under the category of persons eligible for filing the SFT.

Applicability of Form 61A

The SFTs or reportable account is furnished in the form 61a. Thus, the following persons/institutions are required to fill the form 61A before the due date:

S. No.

Type of Organization

Type of work

1

A banking company or a cooperative bank, all post offices, Nidhi as specified in section 406 of the Companies Act, 2013

It involves cash payments for the purchase of different instruments for amounts more than INR 10 Lakhs, deposits or withdrawals that amount to INR 50 Lakhs, depositing amounts more than INR 10 Lakhs, etc.

2

Any company or institution issuing the credit cards

Receipt of cash payments that amount to more than INR 1 Lakh or any other mode of payment that amounts to more than INR 10 Lakhs against any credit card bill.

3

Any individual covered under audit under section 44AB of the Income Tax Act, 1961

 

4

An organisation issuing debentures or bonds

Receipt of transactions that amounts to more than INR 10 Lakhs

5

An organisation issuing shares

Receipt of transactions that amounts to more than INR 10 Lakhs

6

Any mutual funds company

Receipt of transactions that amounts to more than INR 10 Lakhs

7

Any company listed on the recognised stock exchange

Receipt of share buybacks that amounts to more than INR 10 Lakhs

8

A trustee or any other person authorised by the trustee of the mutual funds

Receipt of transactions that amount to more than INR 10 Lakhs

9

A money changer, offshore banking unit, authorised dealer, or any other person defined by the FEMA

A receipt of the sale of foreign currency for amounts more than INR 10 Lakhs

 

10

A sub-registrar or Inspector General appointed under the Registration Act, 1908

Cash receipts exceeding the amount of INR 2 Lakhs

11

An NBFC or non-banking financial company

 

After going through the form 61A applicability, any individual falling in the categories mentioned above must fill it to prevent any action from the Income Tax department if they have high-value transactions.

What are the Statement Number and Statement ID in Form 61A?

The statement number in form 61A is a validation field. Thus, it is crucial to fill this form, or the Income Tax department will reject your form. It is further mandatory to run a validation check to look for any possible correction in the form.

It is a free text field that is used to mention the sender’s unique identifying number that works as identification of any specific statement being sent. This number helps the sender and receiver identify the particular statement in case of any issues. The successful submission of the transaction creates a new and unique statement ID.

Thus, the reporting entities must remain a link with the statement number and statement ID. This unique ID is, therefore, the main point of identification of the statements in the form. It is possible to regain the original statement ID, which may get replaced or deleted due to any reason.

A Quick Look at the Different Parts of Form 61A

It is great to look at all the different parts of Form 61A before you start filling it. Thus, the different parts of this form are namely:

  • Part A: Statement details

  • A1: Reporting entity details

  • A2: Statement details

  • A3: Principal Officer details

  • Part B: Report details for aggregated financial transactions

  • B1: Report number

  • B2: Person details

  • B3: Financial transaction summary

  • B4: Financial product details

  • Part C: Report details for bank/post office account

  • C1: Report number

  • C2: Account details

  • C3: Account summary

  • C4: Person details

  • Part D: Report details for immovable property transactions

  • Report number

  • Transaction details

  • Person details

  • The last part of form 61A contains all detailed instructions to fill it.

Specified Financial Transactions: What are they?

Form 61A mentions the following different types of SFTs:

  • Works contract

  • Any investments made or expenditure incurred

  • Sale, exchange, or purchase of goods

  • Right, interest in the property, or any other property-related transactions

  • Providing services

What is the Due Date to Fill Form 61A?

The due date to fill the SFT is within 31st May of the next year for every previous financial year in which these transactions have occurred. If any taxpayer who comes under the relevant category of the SFTs fails to fill this form, it invites a penalty.

Section 271A specifies the penalty if you fail to fill Form 61A within the due date. This penalty is INR 500 per day. Further, the Income Tax Department issues notice to such an individual. The department demands the submission of this form within the thirty days of issuance of the notice.

More on Form 61A

If the individual doesn’t fill the form even after receiving the notice, the penalty increases to INR 1,000 per day. The total penalty is thus, calculated from the date of expiry period as specified in the notice. It is important to keep a check on the notice and make sure that all the due forms are filled. Do read about other details related to income tax and forms, only on Finserv MARKETS.