Section 285BA of the Income Tax requires specified reporting persons to furnish statement of financial transaction. 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. As you all are aware that Budget 2019 widens scope of Statement of Financial Transactions (SFT). So therefore from this Financial Year 2019-20, the compliance will be more stringent.
Page Contents
- Who are require to file statement of SFT in Form 61A:
- What is the periodicity and due date of furnishing statement of financial transaction
- Nature transaction alongwith its monetary value required to be reported
- How to file Statement of Financial Transaction online?
- What are different parts of Form 61A
- What are the consequences of not furnishing statement of financial transactions or reportable accounts?
- What are the consequences of failure to correct Inaccurate or defective statement of financial transaction or reportable account filed?
Who are require to file statement of SFT in Form 61A:
- Any person who is liable for audit under section 44AB of the Income –tax Act
- A Banking Company
- A Co-operative Bank
- Post Master General of Post office
- A Nidhi referred to in sec 406 of the Companies Act 2013
- A Non-banking Financial Company (NBFC)
- Any Institution issuing Credit Card
- A Company or Institution issuing bonds or debentures
- A Company issuing shares
- A company listed on a recognised stock exchange purchasing its own securities
- A Trustee of a Mutual Fund or such other person authorized by the trustee
- Authorized Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999
- Inspector-General or Sub-Registrar appointed under Registration Act, 1908
What is the periodicity and due date of furnishing statement of financial transaction
The statement of financial transactions (online return in Form No. 61A with digital signature) shall be furnished on or before 31st of May, immediately following the financial year in which the transaction is registered or recorded. i.e For FY 2019-20 the due date will be 31st May, 2020.
Nature transaction alongwith its monetary value required to be reported
| SI No | Nature of transaction alongwith respective reporting person | Value of transaction |
| 1 | Cash payment purchase of bank drafts or pay orders or banker’s cheque reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies | Aggregating to Rs 10 lakh or more in a FY |
| Cash payments for purchase of pre-paid instruments issued by Reserve Bank of India and reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies | Aggregating to Rs 10 lakh or more during the FY | |
| Cash deposits or Cash withdrawals (including through bearer’s cheque) in one or more current account of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies | Aggregating to Rs 50 lakh or more in a FY | |
| 2 | Cash deposits in one or more accounts other than a current account and time deposit of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or by Post Master General | Aggregating to Rs 10 lakh or more in a FY |
| 3 | One or more time deposits (other than renewed time deposit of another time deposit) of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or by Post Master General or by Nidhi companies or By NBFCs | Aggregating to Rs 10 lakh or more in a FY |
| 4 | Credit card payments made by any person either in cash or by any other mode in a Financial Year reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or any other company or institution issuing credit card | Aggregating to:
Rs 1 lakh or more in cash or Rs 10 lakh or more by any other mode in a FY |
| 5 | Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal of the bond or debenture issued) reported by A company or institution issuing bonds or debentures | Aggregating to Rs 10 lakh or more in a FY |
| 6 | Receipt from any person for acquiring shares (including share application money) issued by the company and Reported by a company issuing shares | Aggregating to Rs 10 lakh or more in a FY |
| 7 | Buyback of shares from any person (other than the shares bought in the open market) reported by a company listed on a recognised stock exchange purchasing its own securities | Aggregating to Rs 10 lakh or more in a FY |
| 8 | Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than transfer from one scheme to another of that Mutual Fund) reported by A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf | Aggregating to Rs 10 lakh or more in a FY |
| 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 reported by Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 | Aggregating to Rs 10 lakh or more during a FY |
| 10 | Purchase or sale of immovable property by any person reported by Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. | 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 |
| 11 | Receipt of Cash payment for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10) reported by any person who is liable for audit under section 44AB of the Act | Exceeding Rs 2 lakh |
How to file Statement of Financial Transaction online?
- For SFT Preliminary Response submission and view facility kindly go to Reporting Portal (Use this link – https://report.insight.gov.in/reporting-webapp/portal/homePage )
- Register yourself on Reporting portal under My Account menu
- Please note that all statements uploaded to the Reporting Portal should be in the XML format consistent with the prescribed schema published by the Income-tax Department
- Once XML is generated, sign and encrypt the XML using the Submission utility and prepare package to be uploaded
- Submit the statement on Reporting Portal
- Upon successful submission, an email with “Acknowledgment Number” will be sent to the registered email id
- For more details, refer “SFT quick reference Guide” and “Reporting Portal User Guide” in Resources section of Reporting Portal.
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):
- Part B (Person Based Reporting)
- Part C (Account Based Reporting)
- Part D (Immovable Property Transaction Reporting)
What are the consequences of not furnishing statement of financial transactions or reportable accounts?
- Failure to furnish statement of financial transaction or reportable account will attract a penalty under section 271FA at the rate of Rs. 100 for every day during which such failure continues.
- As per provisions of section 285BA(5), the prescribed Income-tax authorities may issue a notice to a person who is required to furnish such statement and has not furnished the same in the prescribed time, directing person to file the statement within a period not exceeding 30 days from the date of service of such notice and in such case, the person shall furnish the statement within the time specified in the notice.
- If such person fails to file the statement within the specified time then a penalty of Rs. 500 for every day for which the failure continues, may be levied from the day immediately following the day on which the time specified in such notice for furnishing the statement expires
What are the consequences of failure to correct Inaccurate or defective statement of financial transaction or reportable account filed?
As per section 271FAA of the Income-tax Act, if a person who is required to furnish statement of financial transaction or reportable account, provides inaccurate information in the statement, and where:
(a) the inaccuracy is due to a failure to comply with the due diligence requirement prescribed under section 285BA(7) or is deliberate on the part of that person;
(b) the person knows of the inaccuracy at the time of furnishing the statement but does not inform the prescribed income-tax authority or such other authority or agency;
(c) the person discovers the inaccuracy after the statement is furnished and fails to inform and furnish correct information within a period of 10 days as specified under section 285BA(6),
Then, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of Rs. 50,000/-
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