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What is Form 61A? – Statement of Specified Financial Transactions (SFT)

Form 61A - Statement of Financial Transactions (SFT)

Section 285BA of the Income Tax requires specified reporting persons to furnish statement of specified financial transaction (SFT). Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A.

What is Form 61A of Income Tax?

Form 61A is a statement of Specified Financial Transactions (SFTs) that certain entities and taxpayers are required to furnish to the Income Tax Department of India. It’s filed under Section 285BA of the Income Tax Act, 1961, and is used to report high-value transactions that might not be part of the regular income tax returns.

The purpose of Form 61A is to assist the tax authorities in identifying and tracking large transactions that could have tax implications. This helps in preventing tax evasion and ensuring compliance with tax laws. Entities that are required to file this form include banks, mutual funds, institutions issuing bonds, and registrars or sub-registrars, among others.

 

Who Must Furnish Form 61A?

The entities required to file Form 61A, which is the statement of Specified Financial Transactions (SFTs), are as follows:

  • Banking companies and cooperative banks
  • Non-banking financial companies (NBFCs)
  • Institutions issuing credit cards
  • Entities covered under audit under section 44AB of the Income Tax Act
  • Post offices
  • Nidhi companies, as referred to in section 406 of the Companies Act 2013
  • Companies issuing bonds or debentures
  • Companies issuing shares
  • Mutual fund institutions
  • Companies listed on a recognised stock exchange
  • Trustees of a mutual fund or such other persons as authorised by the trustee
  • Authorised dealers, offshore banking units, money changers, or any other persons defined in FEMA
  • Inspector general or sub-registrar appointed under the Registration Act, 1908.

These entities are required to report high-value transactions to the Income Tax Department to aid in the identification of potential tax liabilities and to prevent tax evasion

 

What are “Specified Financial Transactions” To Be Reported In Form 61A?

Sl. No. Nature and value of transaction Class of person (reporting person)
1 (a) Payment made in cash for purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating to Rs. 10 lakh or more in a financial year.

(b) Payments made in cash aggregating to Rs. 10 lakh or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India.

(c) Cash deposits or cash withdrawals (including through bearer’s cheque) aggregating to Rs. 50 lakh or more in a financial year, in or from one or more current account of a person.

A banking company or a co-operative bank
2 Cash deposits aggregating to Rs. 10 Lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. (i) A banking company or a co-operative bank
(ii) Post Master General
3 One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to Rs. 10 lakh or more in a financial year of a person. (i) A banking company or a co-operative bank
(ii) Post Master General

(iii) Nidhi Company

(iv) Non-banking financial company

4 Payments made by any person of an amount aggregating to—
(i) Rs. 1 lakh or more in cash; or

(ii) Rs. 10 lakh or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year.

A banking company or a co-operative bank or any other company or institution issuing credit card.
5 Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). A company or institution issuing bonds or debentures.​
6 Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring shares (including share application money) issued by the company. A company issuing shares.​
7 Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to Rs. 10 lakh or more in a financial year. A company listed on a recognised stock exchange purchasing its own securities under ​ section 68 of the Companies Act, 2013
8 Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund). A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund
9 Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to Rs. 10 lakh or more during a financial year. Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).
10 Purchase or sale by any person of immovable property for an amount of Rs. 30 lakh or more or valued by the stamp valuation authority referred to in section 50C of the Act at Rs. 30 lakh or more. Inspector-General or Registrar or Sub-Registrar appointed under the Registration Act, 1908
11 Receipt of cash payment exceeding Rs. 2 lakh for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.) Any person who is liable for audit under section 44AB of the Act.​
12 Cash deposits during the period 9th November, 2016 to 30th December, 2016 aggregating to—

(i) Rs. 12,50,000 or more, in one or more current account of a person; or

(ii) Rs. 2,50,000 or more, in one or more accounts (other than a current account) of a person.

A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies

(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898

13 Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under SI.No.12 because cash deposited in this account between 9th November, 2016 to 30th December, 2016 aggregating to—

(i) Rs. 12,50,000 or more, in one or more current account of a person; or

(ii) Rs. 2,50,000 or more, in one or more accounts (other than a current account) of a person.

A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies

Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898

 

What are different parts of Form 61A?

Form 61A has two parts. Part A which contains statement level information is common to all transaction types. The report level information has to be reported in one of the following parts (depending of the transaction type):

1.Part B (Person Based Reporting)
2.Part C (Account Based Reporting)
3.Part D (Immovable Property Transaction Reporting)

What is Person Based Reporting (Part B)?

Part B shall be used for person based reporting which is relevant to following transactions:
SFT- 001: Purchase of bank drafts or pay orders in cash
SFT- 002: Purchase of pre-paid instruments in cash
SFT- 005: Time deposit
SFT- 006: Payment for credit card
SFT- 007: Purchase of debentures
SFT- 008: Purchase of shares
SFT- 009: Buy back of shares
SFT- 010: Purchase of mutual fund units
SFT- 011: Purchase of foreign currency
SFT- 013: Cash payment for goods and services

What is Account Based Reporting (Part C)

Part C shall be used for account based reporting which is relevant to following transactions:
SFT- 003: Cash deposit in current account
SFT- 004: Cash deposit in account other than current account
SFT- 014: Cash deposits during specified period (9th Nov to 30th Dec, 2016).

What is Immovable Property Transaction Reporting (Part D)?

Part D shall be used for reporting of purchase or sale of immovable property (SFT- 012). The reportable immovable property transactions have to be determined by applying the threshold limit. The reporting person/entity is required to submit specified details of immovable property transactions which are determined as reportable.

How to file Form 61A online?

  • Step 1: Register on the Reporting portal under My Account menu.
  • Step 2: All statements uploaded to the Reporting Portal should be in the XML format consistent with the prescribed schema published by the Income Tax Department.
  • Step 3: Once XML is generated, sign and encrypt the XML using the Submission utility and prepare a package to be uploaded.
  • Step 4: Submit the statement on Reporting Portal.
    Upon successful submission, an email with “Acknowledgment Number” will be sent to the registered email id.

Additionally, you can find helpful video tutorials on how to file Form 61A online:

  • How to File Form 61A Online – Statement of Financial Transactions: This video explains how to generate and file Form 61A under the Income-Tax Act, including details about the due date and applicability

Due Date To File Form 61A

The due date to file Form 61A, which is the Statement of Specified Financial Transactions (SFT), is 31st May of the year following the previous financial year in which the transaction occurred. This form is used for reporting specified financial transactions, including high-value transactions, made by taxpayers. Here are some key points related to Form 61A:

  1. Nature of Transactions: Form 61A covers various types of transactions, including:
    • Sale, purchase, or exchange of goods, rights, properties, or interests.
    • Works contracts.
    • Providing services.
    • Investments made or expenditures incurred.
    • Accepting deposits or taking loans.
    • Cash payments for purchasing bank drafts, pay orders, or banker’s cheques.
    • Cash payments for prepaid instruments issued by the Reserve Bank of India (RBI).
    • Cash deposits or withdrawals (including through bearer’s cheques) in current accounts.
    • Cash deposits in accounts other than current accounts and time deposits.
    • Time deposits (other than renewed time deposits).
    • Credit card payments exceeding Rs 1 lakh in cash or any other mode.

 

Penalty for Late Filing of Form 61A

    • If you fail to file Form 61A within the due date, a penalty of Rs 500 per day will be levied under Section 271FA.
    • The authorities may issue a notice, demanding submission of the form within 30 days from the notice issuance date.
    • If you continue to default, an additional penalty of Rs 1000 per day will apply.

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