Section 285BA of Income Tax Act 1961 cast a responsibility on the persons which are covered under rule 114E to furnish such records within the time specified.
The Rule 114E prescribed under the reporting transactions and persons that need to file such records to Director/ Joint director of Income Tax (Intelligence and Criminal Investigation). The same is produced below in a synopsis manner to help the reader to get a broad idea of the provisions and rules.
Section 285BA read with Rule 114E of the Income Tax Act 1961 (w.e.f April 01, 2016)
|Sr. #||Nature of transactions||Reporting Entity|
|1(a,b)||Cash payment for buying bank drafts, pay order , Banker’s cheque, pre-paid instruments from RBI for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949|
|1(c)||Cash Deposits/ Withdrawal in current account aggregating to Rs. 50 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949|
|2||Cash Deposits other than current account aggregating to Rs. 10 Lakhs or more in a financial year||Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
|3||Fresh Time Deposits (other than renewal) aggregating to Rs. 10 Lakhs or more in a financial year||Banks, Co-operative Banks, Post Office, Nidhi Company, NBFC|
|4||Credit card payment aggregating to Rs. – 1 Lakhs or more in cash
– 10 Lakhs or more by any other mode
|Banks, Co-operative Banks, Any other institutions issuing such cards|
|5||Bonds/ Debentures purchased for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any company/institutions issuing such bonds or debentures|
|6||Share purchase (including share application money) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any company/institutions issuing such shares|
|7||Buy Back of shares (other than from open market) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Any listed company buying back its securities u/s 68 of CA 2013|
|8||Units purchase (other than for transfer from one scheme to another) for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Trustee/ Authorized personnel of Mutual Fund|
|9||Sale of Foreign currency by whatever mode to a person for an amount aggregating to Rs. 10 Lakhs or more in a financial year||Authorized person as per FEMA 1999|
|10||Purchase/ Sale of immovable property by any person for an amount of Rs. 30 Lakhs or more as valued by Stamp valuation authority||Inspector General/Registrar/Sub registrar|
|11||Receipt of cash payment by any person for sale of goods or supply of services of any nature||Any person who is liable for audit under section 44AB of the Act.|
|12||Cash deposits during November 9, 2016 to December 30, 2016 aggregating to Rs.
-12.5 Lakhs or more , in one or more current account of a person -2.5 Lakhs or more , in one or more account (other than current account) of a person
|Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
|13||Cash Deposits during April 9, 2016 till November 9, 2016 in respect of accounts reportable under clause 12(above)||Banking Company, co-operative bank covered under Banking Regulation Act 1949, Post Master General|
Due Date – May 31 immediately following the end of financial year in which the above transactions are registered or recorded.
Procedure for the Registration – Prescribed vide Notification # 13 dated December 30, 2016.
Procedure for the submission – Prescribed vide Notification # 01 dated January 17, 2017.
Summary for submission – Schema/format can be downloaded from the income tax site under the tab “schema” and e-filling utility can be downloaded “under forms (other than ITR)”. Separate form 61A needs to be furnished for each of the 14 types of transactions that are reportable. Aggregation rule is to be taken for considering whether such transaction pertaining to such person is reportable or not. Aggregation rule is applicable for all the transactions subject to exception for Clause 10 and Clause 11.
Form 61A is to be furnished to Joint/Director of Income Tax (Intelligence and Criminal Investigation) by electronic means with digital signature.
It contains Four Parts which are A,B,C,D which are discussed as follows :
a. Part A – contains statement level information is common to all transaction types
b. Part B (Person Based Reporting) – Consists of transactions under clauses 1(a,b), 1(‘c), 5, 6,7,8,9,10,11,13. Aggregation rule is applicable to determine whether the transaction are reportable or not
c. Part C (Account Based Reporting) – Consists of transactions under clauses 3,4,14.
d. Part D (Immovable property transaction reporting) – Consists of transactions under clause 12.
On further emphasis the notification laid down the following statement types:
One Statement can contain only one type of Statement. Permissible values for type of Statement are:
NB – New Statement containing new information
CB – Correction Statement containing corrections for previously submitted information
ND – No Data to report
After furnishing of the return a statement ID and statement number shall be provided which shall be used for future references.
For detailed explanations refer to Notification # 1 of 2017 dated January 17, 2017.
Consequences of Non Compliance:
Penalty @ Rs 100 per day of default of furnishing
Penalty for providing inaccurate information shall be Rs. 50,000
Penalty for non – compliance to notice calling for filling of return @ Rs 500 per day of such default