Understanding Form 61A of the Income Tax Act, 1961

If you handle high-value transactions—such as major property sales, mutual fund investments, or large cash deposits—you’ll likely need to deal with Form 61A. This form helps the Income Tax Department track significant financial activities that could point to tax evasion. Filing it properly promotes fair reporting and keeps your records in line with the law.

Knowing the Form 61A applicability, understanding how to file Form 61A, and following the right Form 61A format are more important than they seem. A timely and accurate submission protects you from penalties and keeps your financial profile safe and compliant.

Form 61A is a statement that reports high-value financial transactions to the Income Tax Department. It was earlier known as the Annual Information Return (AIR) and is now officially called a Statement of Financial Transactions (SFT). If you're involved in transactions that exceed certain limits, this form helps ensure your financial activity is clearly reported and properly tracked.

Section 285BA of the Income Tax Act and Rule 114E of the Income Tax Rules outline the requirements for financial reporting. Filing Form 61A of Income Tax Act is mandatory for banks, financial institutions, companies, and other specified persons. This helps the government identify possible tax evasion and promote clean, transparent financial reporting.

Knowing what is Form 61A helps you understand your duty as a taxpayer or reporting entity. It’s not just a form—it’s part of a larger system that supports accountability and fair tax practices.

Specified Financial Transactions are certain high-value activities that must be reported to the Income Tax Department. These transactions help track major financial movements and reduce the risk of tax evasion. Reporting them through Form 61A ensures transparency and accountability.

The following are commonly included under SFTs:

• Signing a works contract

• Accepting any deposit or taking a loan

• Spending a large amount or making an investment

• Selling, buying, or exchanging property, goods, or legal rights
   

The value and type of each transaction may vary based on your profile. The form 61A applicability rules can differ for individuals, companies, or financial institutions depending on the transaction amount and nature.

If you represent an organisation that deals with large financial transactions, you may be legally required to report them through Form 61A. Here are the types of entities covered under Form 61A applicability:

• Any person whose accounts are audited under Section 44AB of the Income Tax Act must file Form 61A

• All scheduled banks and co-operative banks are required to report high-value transactions

• Non-banking financial companies (NBFCs) must file reports under specific transaction thresholds

• Entities that issue credit cards must report spending beyond set limits

• Post offices, including the Postmaster General, must report savings account and deposit data

• A Nidhi company, as defined in Section 406 of the Companies Act, 2013, must submit Form 61A 

• Companies or institutions that issue bonds or debentures need to report investor transactions

• Any company that issues shares is required to disclose relevant transactions

• A mutual fund trustee or authorised person must report transactions made by investors

• Listed companies purchasing their own securities under Section 68 of the Companies Act must report it

• Authorised dealers, offshore banking units, and money changers under FEMA are also covered

• Registrars, sub-registrars, and inspector-generals under the Registration Act, 1908, must report property deals

Here’s a quick overview of the types of transactions that must be reported in Form 61A of the Income Tax Act:

Here’s an overview of the different sections that make up Form 61A, designed to capture various types of financial information:

• Part A: Contains general information such as the PAN of the reporting entity, name, address, and the financial year of the transactions

• Part B: Reports person-based transactions, especially those involving cash, to ensure accurate tracking of individual dealings

• Part C: Provides account-based reporting, focusing on the accounts where the specified transactions took place

• Part D: Covers immovable property transactions, specifically for property deals that exceed the prescribed limit
   

Each part is tailored to capture specific details, ensuring a comprehensive report when filing Form 61A.

Here’s a simple, step-by-step guide to file Form 61A online through the Income Tax Department’s e-filing portal:

1. Visit the official e-filing portal of the Income Tax Department

2. Log in using your User ID, authorised PAN, and password

3. Go to the ‘e-file’ section and select Upload Form 61A

4. Review the details displayed on the screen, such as reporting entity PAN and form name

5. Attach the completed Form 61A in a zip format along with the signature file

6. Click the ‘Upload’ button to submit the form

7. Once uploaded, a confirmation message will appear with the upload status

Following these steps ensures your Form 61A submission is successful and processed correctly.

Here’s a step-by-step guide to help you register for SFT filing with the Income Tax Department:

1. Access the e-Filing website (https://incometaxindiaefiling.gov.in/) and log in using your credentials, which are the same as those used for filing the Income Tax Return

2. Navigate to the ‘My Account’ section and click on the ‘Reporting Portal’ link to begin your first-time registration

3. Provide the necessary information, including form type, category, the address of the reporting entity, and details of the Principal Officer

4. Once the information is submitted, your ITDREIN (Income Tax Department Reporting Entity Identification Number) will be generated

5. The Principal Officer will receive a confirmation message via both email and SMS on the registered contact details

Once registered, you can prepare and upload your SFT data during the filing period, but remember, this registration doesn’t deactivate once generated.

Here’s a simple guide to view Form 61A and make necessary updates if needed:

1. Log in to the e-filing portal using your User ID, PAN, and password

2. Navigate to the ‘My Account’ section on the homepage

3. Click on ‘View Form 61A’ to access the form details

4. Select the Assessment Year and Filing Status from the dropdown menu

5. Click on ‘View Details’ to open the form’s status

6. Check the ‘Filing Status’ field, which will display as Uploaded, Accepted, or Rejected

Note: The updated status will appear 24 hours after the form is uploaded. If the status is ‘Accepted’, click on the ‘Transaction Number’ to download Form 61A by selecting the ‘ZIP’ link. If the status is ‘Rejected’, click on the ‘Transaction Number’ to view the specific errors that need to be corrected.

Here’s what you need to know about the penalties for failing to submit Form 61A or submitting incorrect information:

Failure to File Within Due Date

If you fail to file Form 61A by the due date, a penalty of ₹500 per day will be charged under Section 271FA.

Failure to Respond to Notice

If you don't submit Form 61A after receiving a notice, the penalty increases to ₹1,000 per day from the expiry of the notice deadline.

Grace Period for Filing After Notice

After receiving a notice, you must submit Form 61A within 30 days; otherwise, daily penalties apply.

Failure to Correct Errors

If you provide inaccurate information, a fine of ₹50,000 will be imposed if the errors are not corrected within 10 days.

Penalties for Inaccurate Information

If false information is knowingly provided, a penalty of ₹50,000 will be levied on the reporting entity.

Penalty for Delayed Submission After Notice

After the initial grace period, the daily penalty of ₹500 increases to ₹1,000 per day for continued non-compliance.

Submitting a defective Form 61A can lead to penalties and complications if not addressed quickly. Here's what you need to know:

Notification of Errors

If the Income Tax Department finds errors in Form 61A, they will notify you and provide a 30-day period to correct the mistakes.

Intentional False Reporting

Deliberate false information in Form 61A will incur a ₹50,000 penalty under Section 271FAA of the Income Tax Act.

Delayed Rectification

If errors aren’t corrected within the given timeframe, penalties increase to ₹500 per day, rising to ₹1,000 per day after the notice’s due date.

Failure to Notify Authorities

If inaccuracies are discovered and not reported within 10 days, a ₹50,000 penalty will be imposed for failing to update the authorities.