APPLICABILITY OF FORM 61A AND REPORTING IN 3CD
Introduction:
To keep vigilance on high – value transactions entered by the taxpayers, The Income tax department has brought a new mechanism to furnish statement of financial transactions in the prescribed form 61A. Also known as Annual information return (AIR). It helps the department to curb the chances of tax evasion.
Form 61A is a statement of Specified Financial Transactions that need to be submitted by a notified taxpayer for the applicable financial year. Form 61A is generated under Sec 285 BA of Income Tax Act, 1961 read with Rule 114E of Income Tax Rules, 1962.
Nature and value of transactions to be reported in Form 61A
SI. No. |
Nature and value of transaction |
Class of person (reporting person) |
|
1 |
(a) Cash payment made for purchase of bank drafts or pay orders or banker’s cheque of an amount totalling to ten lakh rupees or more in a financial year. (b) Cash payment made totalling to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by RBI under section 18 of the Payment and Settlement Systems Act, 2007. (c) Cash deposits or cash withdrawals (including through bearer’s cheque) totalling to fifty lakh rupees 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 totalling to ten lakh rupees 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 Offices |
|
3 |
One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person totalling to ten lakh rupees or more in a financial year of a person. |
(i)A banking company or a co-operative bank (ii)Post Offices (iii)Nidhi Company (iv)NBFC |
|
4 |
Payments made by any person of an amount totalling to— (i) one lakh rupees or more in cash; or (ii) ten lakh rupees 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 banking institution any other company or institution issuing credit card. |
|
5 |
Receipt from any person of an amount totalling to ten lakh rupees or more in a financial year for acquiring bonds or debenture 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 totalling to ten lakh rupees 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 totalling to ten lakh rupees or more in a financial year. |
Listed company |
|
8 |
Receipt from any person of an amount totalling to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund |
Manager/Trustee of a 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 totalling to ten lakh rupees or more during a financial year. |
A Dealer of Foreign Exchange |
|
10 |
Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more. |
Inspector-General/Sub-Registrar appointed under the Registration Act, 1908 |
|
11 |
Receipt of cash payment exceeding Rs 2,00,000 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. |
DUE DATE:
The due date for the filling of “Statement of Financial Transactions (SFT)” for any previous financial year is the 31st May of the following financial year.
For example, the last date for filling of SFT for FY 2018-19 is 31st May 2019. Likewise for FY 2019-20 due date for filling SFT is 31st May 2020.
Penalty for non – furnishing SFT:
If the Reporting person fails to furnishing of SFT within due date specified, the prescribed income-tax authority may serve notice to the person requiring him to furnish SFT within a period not exceeding 30 days from the date of issue of such notice and he shall furnish the statement within the time specified in the notice.
Form 61A (SFT) and reporting in Tax Audit Report form 3CD:
Notification has been issued CBDT amending the form 3CD with effect from 20thAug 2019, the Amended form 3CD includes the disclosure on Specific Financial Transactions (SFT) under clause 42 of 3CD.
Clause 42: The tax auditor should ascertain whether the assessee is required to report any transactions under section 285BA read with Rule 114E.
If there are any transactions which are required to be reported in SFT the same are not furnished in Form 61A, Tax auditor should furnish list of the details/ transactions which are not reported.
If you need any further clarification on RCM 61A and its applicability feel free to reach us.