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.
In this article, I am mainly focusing on Form 61A. The author has mentioned the applicability of Form 61A with the help of chart for simple understanding of user. Further article will also cover the periodicity and due date of furnishing Form 61A.
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.
Requirements of Filing Form 61A for reporting entity has been made mandatory. Lets See with help of this chart who is required to Submit Form 61A and who is not required to submit the same and who are required to submit preliminary response under Section 285BA Read with Rule 114E of Income Tax Rules.
(Republished with Amendments)