INTRODUCTION:
To keep a vigil on high value transactions undertaken by the taxpayer, a new
concept of "Statement of Financial Transactions" under section 258BA of
Income Tax Act, 1961 has been introduced.
Further, Rule 114E of Income Tax Rules 1962, specifies furnishing of
“Statement of financial Transactions” in Form No 61A.
With the help of the statement Income Tax authorities
will collect information on certain prescribed high value transactions
undertaken by a person during a particular financial year.
BASIC
PROVISIONS OF SECTION 258BA OF INCOME TAX ACT, 1961
Statement of ‘high value
financial transactions‘ is required to be furnished under section 285BA of
the Income-tax Act, 1961
by ‘specified persons‘ in respect of ‘specified transactions‘ registered or
recorded by them during the financial year.
The ‘specified persons’
and the ‘specified transactions’ are listed in new Rule 114E of the Income-tax
Rules, 1962.
PERSONS
& NATURE OF TRANSACTIONS COVERED REQUIRED TO FILE "STATEMENT OF
FINANCIAL TRANSACTIONS"
|
S. No.
|
Description & Value of Transaction
|
Reporting Person
|
Transactions to be Reported
|
|
1
|
Payment of cash aggregating Rs. 10,00,000 or more in a year
for purchase of DD, Pay Orders, Bankers Cheque.
|
• A Banking Company,
• Cooperative Bank
|
SFT-001
|
|
2
|
Payment made in cash aggregating to Rs. 10,00,000 or more in a
year for purchase of pre-paid instruments issued by RBI
|
• A Banking Company,
• Cooperative Bank
|
SFT-002
|
|
3
|
A Cash deposit aggregating to Rs. 50,00,000 or more in a year
in one or more current account of a person
|
• A Banking Company,
• Cooperative Bank
|
SFT-003
|
|
4
|
A Cash withdrawal aggregating to Rs. 50,00,000 or more in a
year from one or more current account of a person
|
• A Banking Company,
• Cooperative Bank
|
|
|
5
|
A cash deposit aggregating to Rs. 10,00,000 or more in a year
in one or more bank accounts (other than current account or time deposit)
|
• A Banking Company,
• Cooperative Bank,
• Post Master General
|
SFT-004
|
|
6
|
One or more time deposit (other than renewal) aggregating to Rs.
10,00,000 or more of a person
|
• A Banking Company,
• Cooperative Bank,
• Post Master General
• Nidhi (Sec 406 of the
Companies Act 2013)
|
SFT-005
|
|
7
|
Credit card payment made by any person aggregating to Rs.
1,00,000 or more in a year in cash or Rs. 10,00,000 or more by any other mode
|
• A Banking Company,
• Cooperative Bank,
• Any Institution issuing Credit Card
|
SFT-006
|
|
8
|
Receipt from any person of an amount agregating to
Rs.10,00,000 or more for acquiring bonds or debentures issued.
|
Receipt from a person of an amount aggregating to Rs.10,00,000
or more for acquiring bonds or debentures issued.
|
SFT-007
|
|
9
|
Receipt from any person of an amount aggregating to Rs.
10,00,000 or more in a year for acquiring shares issued by the company
(including share application money)
|
Company issuing shares
|
SFT-008
|
|
10
|
Buy back of shares from any person (other than the shares
bought in the open market) for an amount or value aggregating to Rs.
10,00,000 or more in a year.
|
A company listed on a
Recognized stock exchange
|
SFT-009
|
|
11
|
Receipt of an amount aggregating Rs. 10,00,000 or more for
acquiring units of one or more schemes of a Mutual Fund. (other than
switching of funds from one scheme to
another)
|
Trustee of a Mutual Fund
|
SFT-010
|
|
12
|
Receipt from any person for sale of foreign currency 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. 10,00,000 or more in a year
|
•Authorized Dealer,
•Money
•Changer,
•Off-shore Banking Unit
as covered in
FEMA, 1999
|
SFT-011
|
|
13
|
Purchase or sale by any person of immovable property for an
amount of Rs. 30,00,000 or more or valued by the stamp valuation authority
referred to in section 50C of the Act at Rs. 30,00,000 or more.
|
Inspector-General or Sub- Registrar appointed under
Registration Act, 1908
|
SFT-012
|
|
14
|
Receipt of cash payment exceeding Rs. 2,00,000 for sale of
goods or providing services of any nature other than those
specified above
|
Any person who is liable for audit under section 44AB of the
Act
|
SFT-013
|
AGGREGATION RULES
APPLICABLE W.R.T "STATEMENT OF
FINANCIAL TRANSACTIONS".
Aggregation Rules are applicable for all
transactions except SFT- 012 "Purchase
or sale of immovable property" (SFT-012) &
"Cash payment for goods and
services" (SFT- 013).
Aggregation rules needs to be to identify
transactions/persons/accounts which are reportable. Rule 114E specifies that the reporting person
shall, while aggregating the amounts for determining the threshold amount for
reporting in respect of any person :
a. take
into account all the accounts of the same nature maintained in respect of that person
during the financial year;
b. aggregate
all the transactions of the same nature recorded in respect of that person
during the financial year.
c. attribute
the entire value of the transaction or the aggregated value of all the transactions
to all the persons, in a case where the
account is maintained or transaction is recorded in the name of more than one
person.
MAJOR
COMPLIANCE REQUIREMENT: Statement
of Financial Transactions will have to be filed by all those persons who are
subject to Tax audit under Section 44AB of Income Tax Act. This statements has to be filed by such specified persons even though
there are no or NIL receipts of cash payments exceeding INR 2,00,000 as stated
in Point no. of above table.
MATTER
OF CONCERN :
-
The
person (all corporate or Non – corporate)
who is liable for Audit under Section 44AB of the Act has to File
Statement even if it is NIL.
-
The person not liable to tax audit should also
know that if they have made any transaction with any of such other reporting
entity that should be reflected in personal Income Tax Return.
DUE
DATE OF FILING STATEMENT OF FINANCIAL TRANSACTIONS IN FORM 61A: The
statement of financial transactions (online return in Form No. 61A with digital
signature) shall be furnished on or before the 31st May, immediately following
the financial year in which the transaction is registered or recorded.
PENALTIES
U/S 271FA & OTHER CONSEQUENCES FOR NON FILING OF STATEMENT OF FINANCIAL
TRANSACTIONS IN FORM 61A.
(a) Penalty u/s 271FA: Penalty under section 271FA shall be
attracted @ of Rs. 100 per day of default.
(b) Issue of Notices to Defaulting Persons u/s 285BA(5): Tax
authorities can issue a notice to the person directing him to file the
statement within a period not exceeding 30 days from the date of service of
such notice.
(c) Penalty @ INR 500 per day:
If defaulting person commits further
default after receipt of further notice then a penalty of Rs. 500 per day will
be levied from the day immediately following the day on
which the time specified
in such notice for furnishing the statement expires.
PENALTY
FOR FURNISHING INCORRECT INFORMATION IN FORM 61A:
As per section 271FAA, a penalty of INR 50,000 shall be levied if the person concerned furnishes incorrect
information in form 61A provided:
a.
the inaccuracy is due to non due diligence on
part of such person.
b.
The person knows inaccuracy at the time of
furnishing such information.
*Rule w.r.t to Section 271FAA are yet to be notified.
OUTLINE
OF STEPS FOR SUCCESSFUL FILING OF FORM
61A
Step 1: Generate ITDREIN- ITDREIN is mandatory for
filing Form 61A.
ITDREIN is the Unique ID
issued by Income Tax Department (ITD) which will be communicated by ITD after
the registration of the reporting entity with ITD. The ITDREIN is a
16-character identification number in the format XXXXXXXXXX.YZNNN.
Step 2:
After ITDREIN has been generated users can upload form 61A successfully.
For filling up Form 61A, users can download JAVA
Utility from department's website, fill up the data & upload on the portal.
DATE &
INFORMATION REQUIRED IN FORM 61A IN CASE OF CASH RECEIPTS MORE THAN INR
2,00,000.
(I) Part A of
Form 61A
a. Reporting
entity Name
b. IDREIN
no.
c. Registration
no. of such entity
d. Name
of Principle officer
e. Designation
of Principle Officer
f.
Phone, E-mail ID & Address of principle
officer.
(II) Part B of
Form 61A
a. Name,
Father's name & type of person form whom payment have been received.
b. PAN
& Aadhaar no. of person from whom payment has been received.
c. Aggregate
gross amount received from such person.
d. Aggregate
gross amount of cash received from such person.
e. Aggregate
gross amount paid to such person.
