It is crucial for you to know how to file your taxes. Unfortunately, there is no specific training for this anywhere in our country. They do not teach anyone how to file taxes in school (unless you take up taxation as a course in your 11th grade), nor do they impart such basic knowledge in college. So people are basically forced to learn this by themselves and it is usually right before they file tax forms that they learn this necessary piece of information.
Statistics say that a total of 5.78 crore people filed their income tax returns in the financial year 2018-19. Out of this, 4.32 crore individuals reported income below the tax bracket, meaning, about 1.46 crore people pay their taxes in India. This was confirmed by the CBDT (Central Board of Direct Taxes) in a tweet. What looks like a huge number is actually small when you take the total population of 130 crores into perspective.
Now, whether you fall under those 1.46 crore people or not, you need to know how to file your income tax returns. This knowledge might always come in handy in the future. In this article, we are going to look at how you can file Form 61A on the income tax portal. So without further ado, let’s get started.
Before we jump into how you can file Form 61A on the income tax portal, it is essential to know the answer to an important question. What is Form 61A?
Form 61A or the Statement of Financial Transactions (STF), like the name suggests, is a record of the statement of specified financial transactions that taxpayers need to submit to the government for a given financial period. As per Income Tax Rules 1962, Rule 144E states that you need to report details like the type and value of transactions in Form 61A.
For every previous financial year, you need to file the form before the 31st of May every year. If you as a taxpayer fail to file the form within the specified due date, concerned authorities will issue a notice demanding you to submit the same within 30 days from the date of issue of notice. If you still do not file the form within 30 days after the issue of the notice, you will be fined ₹500 every day from the date of expiry of filing Form 61A in the first place. So make sure you file Form 61A on time.
Under this section, we learn how to file Form 61A. Follow the steps below:
Step 2 - After Form 61A download, fill the form out and save it, because you are going to upload it to the portal again.
Step 3 - Visit the income tax portal. Here is the link.
Step 4 - Login to the income tax portal using credentials like User ID, authorized PAN, or your AADHAR ID.
Step 5 - Go to e-file and upload the saved Form 61A.
Step 6 - Once you have uploaded the form, details like reporting entity PAN, form name, and reporting entity category will be displayed on your screen.
Step 7 - Attach a zip format of Form 61A along with your signature file.
Step 8 - Click the ‘Upload’ button.
Once the process is completed, a confirmation message will appear on the screen with the upload status.
Here are some important points to keep in mind regarding Form 61A:
Let us now take a look at the kinds of transactions recorded in the Form 61A, and the entities doing so:
Banking institutions and post offices that deposit over ₹10 lakh in either one or more accounts.
Banking and co-operative banking institutions that withdraw or deposit over ₹50 lakh (annually) from a current account or have cash payouts of over ₹10 lakh for purchase orders and demand drafts. It also includes the purchase of RBI investment instruments like RBI bonds.
Companies issuing shares of over ₹10 lakh (in a year) to individuals who wish to acquire shares.
Companies or institutions issuing bonds and debentures of over ₹10 lakh (in a year) to individuals who wish to acquire bonds or debentures.
Share buy-backs over ₹10 lakh of listed companies.
Banking institutions, post offices, and cooperative banks that issue over ₹10 lakh of a total online payment of a credit card bill issued in a year and total cash of over ₹1 lakh paid in a year against the credit card bill issued in a year.
Dealers of foreign exchange for the sale of over ₹10 lakh worth of foreign currencies or expenses incurred.
Managers or trustees of mutual funds who give mutual fund units of over ₹10 lakh to individuals.
Inspector generals or sub registrars for the sale or purchase of immovable properties worth over ₹30 lakh.
Individuals who are liable for audit for the sale of goods or rendering services worth ₹2 lakh.
If you are a person who falls under any of the below-mentioned categories, it is mandatory that you file Form 61A:
A person who pays tax or any sum of money to the government
A government official
A local authority or a public body
A registrar or sub-registrar
A registering authority that registers motor vehicles
A postmaster general
A recognized stock exchange
An officer of the Reserve Bank of India
A reporting financial institution
Now that you have made it to the end of the article, we hope you know how to file form 61A on the income tax portal. It may look complicated, but once you begin, it’s not as hard as it looks. Happy tax filing!