Income Tax Form 61: Authorisation for Deduction on Payments to Notified Jurisdictional Financial Institutions

Form No. 61 under section 176 of the Income-tax Act, 2025 is an authorisation form that enables taxpayers to claim deductions on payments made to financial institutions located in Notified Jurisdictional Areas (NJAs). It requires the assessee to grant irrevocable consent to the Central Board of Direct Taxes and designated authorities to access financial records from such foreign institutions, even waiving protections relating to privacy, banking secrecy, and data laws. Filing the form is mandatory for claiming deductions on such payments and must be completed before the due date of filing the income tax return, failing which the deduction may be disallowed. The form is filed annually through the e-filing portal and requires supporting documents and proof of submission to the financial institution. It facilitates verification of high-risk cross-border transactions and ensures transparency. The Assessing Officer may allow or disallow deductions based on verification outcomes.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 61: Authorisation for claiming deduction in respect of any payment made to any financial institution located in a notified jurisdictional area

Authorisation for claiming deduction in respect of any payment made to any financial institution located in a notified jurisdictional area

Form No. 61 – Frequently Asked Questions

Q1. What is Form No. 61?

Ans. Form No. 61 is an authorisation given by an assessee to the Central Board of Direct Taxes (CBDT) and designated Income-tax authorities to obtain information and records from a financial institution located in a Notified Jurisdictional Area (NJA), for the purpose of claiming deductions in respect of payments made to such financial institution.

Q2. What is the purpose of Form No. 61?

Ans. The primary purpose of filing Form No. 61 is to provide an irrevocable authorisation to Indian tax authorities to access financial information in a notified jurisdictional area. This facilitates the exchange of information for tax purposes and ensures compliance with legal and financial regulations related to transactions in such areas

Q3. Who is required to file Form No. 61?

Ans. Any person who makes a payment to a financial institution located in a notified jurisdictional area and wishes to claim a deduction for that payment while computing his income under the Income -tax Act, is required to file Form No. 61.

Q4. What is notified jurisdictional area?

Ans. A notified jurisdictional area under Section 176 of the Income-tax Act, 2025 refers to a country or territory outside India that has been notified by the Central Government having regard to the lack of effective exchange of information.

Q5. What is the time limit for filing Form No. 61?

Ans. Form No. 61 must be filed before the due date for filing the Income Tax return for the relevant assessment year. Failure to obtain authorization by filing Form No. 61 before the due date may result in the deduction being disallowed.

Q6. How many times can Form No. 61 be filed in a year?

Ans. Form No. 61 should be filed once for tax year.

Q7. What documents are required to file Form No. 61?

Ans. Required documents include:

i. Details of payment made to financial institution in Notified Jurisdictional Area.

ii. Supporting documents relating to claim of deduction.

iii. Evidence of the first copy of said Form having been deposited or transmitted to the financial institution.

Q8. How can I file Form No. 61?

Ans: Form No. 61 can be filed through online Mode only – through e-Filing portal

Q9. How do I e-Verify form No. 61?

Ans: Form no. 61 can be e-verified through Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC) – OTP-based for individuals and others. DSC is mandatory for companies and firms.

Q10. How do I know that the form has been successfully submitted?

Ans: Once successfully submitted and verified, an acknowledgement number and transaction ID is generated and the applicant receives a confirmation message via email and SMS.

Q11. Who is authorised by the assessee in Form No. 61 to obtain information and records from the said financial institutions?

Ans. The assessee authorises the following authorities to obtain information and records from the financial institution:

i. Central Board of Direct Taxes in the Ministry of Finance, Government of India or

ii. the Joint Secretary (Foreign Tax & Tax Research)-I or Joint Secretary (Foreign Tax & Tax Research)- II, Central Board of Direct Taxes, or

iii. designated Income-tax authorities to obtain information and records from the financial institution,

Q12. What all protections are waived by the applicant while filing Form No. 61?

Ans. While filing Form No. 61, the applicant waives all protections provided under any law, by whatever name called, for the time being in force including law relating to data protection, privacy or banking secrecy.

Q13. What is meant by “records” in Form No. 61?

Ans. “Records” include all documents which the assessee as account holder or customer is entitled to obtain, including:

i. Documents identifying the account holder, beneficial owner and authorised persons,

ii. Account opening documents,

iii. Correspondence between bank and customer/beneficial owner/third parties,

iv. Account statements and statements of assets.

Q14. What is the procedure prescribed in rule 125 to submit Form No. 61?

Ans. As per Rule 125, the assessee shall cause the first copy of the duly filled Form No. 61 to be deposited with or transmitted to the financial institution referred to section 176. And the second copy of the Form No. 61 along with the evidence of the first copy of said Form having been deposited or transmitted to the financial institution shall be submitted by the assessee to the Assessing Officer having jurisdiction over him. Further, for the purpose of ensuring that the authorisation in Form No. 61 is legally enforceable, the assessee shall take all necessary steps as are required under any law for the time being in force in India or outside India.

Q15. As per rule 125, what information and documents are required to be maintained by the assessee who is filing Form No. 61?

Ans. As per rule 125, the assessee who has entered into a transaction with a person located in a notified jurisdictional area (the specified person) shall keep and maintain the following information and documents, namely:—

i. A description of the ownership structure of the specified person, including name and address of individuals or other entities, having directly or indirectly more than ten per cent, shareholding or ownership interests;

ii. a profile of the multinational group of which the specified person is a part;

iii. a broad description of the business of the specified person

iv. any other information, data or document, which may be relevant for the transaction with the specified person.

Q16. Can the applicant withdraw or modify or revise Form No. 61?

Ans. No, applicantcan not withdraw or modify Form No. 61 after its submission. However, if there are any errors or omissions in the originally filed Form No. 61, it can be revised or rectified by submitting a revised form along with the required supporting documents to the Assessing Officer.

Q17. What are the consequences of non-filing of Form No. 61?

Ans. If Form No. 61 is not filed and the required authorization is not obtained, the deduction for the payment made to the financial institution in the notified jurisdictional area will be disallowed, which may result in increase in the taxpayer’s tax liability.

Q18. What is the outcome of Form No. 61?

Ans. The Department may obtain records or information from the financial institution. Information received is used for verification of claim of deduction claim, and based on verification, if the Assessing Officer is satisfied with the application, he may allow the deduction in respect of payments made to a financial institution located in a Notified Jurisdictional Area. This authorization must be attached while filing the Income Tax return. But, if the Assessing Officer is not satisfied, he may disallow such deduction claims of the applicant.

Q19. Why is Form No. 61 important?

Ans. Form No. 61 enables the Income-tax Department to:

i. Directly seek information from financial institutions in Notified Jurisdictional Areas.

ii. Verify the genuineness of payments and claims of deduction.

iii. Undertake deeper scrutiny of high-risk international transactions.

Guidance Note on Income Tax Form 61: Authorisation for claiming deduction in respect of any payment made to any financial institution located in a notified jurisdictional area

Form No. 61 – Authorisation in respect of payments to a financial institution located in notified jurisdictional area

1. Purpose:

Form No. 61 is an authorisation given by an assessee to the Central Board of Direct Taxes (CBDT) and designated Income-tax authorities to obtain information and records from a financial institution located in a Notified Jurisdictional Area (NJA), for the purpose of claiming deductions in respect of payments made to a financial institution. Form No. 61 enables the Income-tax Department to:

i. Directly seek information from financial institutions in Notified Jurisdictional Areas.

ii. Verify the genuineness of payments and claims of deduction.

iii. Undertake deeper scrutiny of high-risk international transactions

The primary purpose of filing Form No. 61 is to provide an irrevocable authorisation to Indian tax authorities to access financial information in a notified jurisdictional area. This facilitates the exchange of information for tax purposes and ensures compliance with legal and financial regulations related to transactions in such areas.

2. Who should file?

Any assessee who wishes to claim deduction of payments made to a financial institution located in a Notified Jurisdictional Area, while computing his income under the Income-tax Act, is required to file Form No. 61.

3. Frequency & Due Dates:

4. Structure of Form:

The Form No. 61 has following parts:

Part A: It has particulars of the financial institution: Name, address, PAN, email id and contact number.

Authorisation: In this part the applicant authorises the Central Board of Direct Taxes or any Income-tax authority acting on their behalf, to obtain information and records relating to its accounts maintained with the specified financial institution in a Notified Jurisdictional Area.

5. Documents required:

i. Details of payment made to financial institution in Notified Jurisdictional Area.

ii. Supporting documents relating to claim of deduction.

iii. Evidence of the first copy of said Form having been deposited or transmitted to the financial institution

6. Step-by-step process:

Form No. 61 can be filed through online Mode only – through e-Filing portal. The applicant to follow the below steps to fill and submit Form No. 61 through online mode:

Step 1: Log in to the e-Filing portal using your user ID and password.

Step 2: Once logged in, navigate to your Dashboard, then click on e-File > Income Tax Forms > File Income Tax Forms.

Step 3: On the File Income Tax Forms page, select Form No. 61. Alternatively, enter Form No. 61 in the search box to file the form.

Step 4: On the Instructions page, click Let’s Get Started.

Step 5: On click of Let’s Get Started, Form No. 61 is displayed. Select the applicable section and fill all the required details. Click Proceed.

Step 6: On the Preview page, verify the details and click Proceed to e-Verify. Step 7: Click Yes to submit.

Step 8: On clicking Yes, you will be taken to the e-Verify page, where you can complete the verification process.

After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Number. Please keep a note of the Transaction ID and Acknowledgement Number for future reference. Download a copy for your records. You will also receive a confirmation message on your email ID and mobile number registered with the e-Filing portal.

As per Rule 125, the assessee shall cause the first copy of the duly filled Form No. 61 to be deposited with or transmitted to the financial institution referred to in section 176. And the second copy of the Form No. 61 along with the evidence of the first copy of said Form having been deposited or transmitted to the financial institution shall be submitted by the assessee to the Assessing Officer having jurisdiction over him.

7. Withdrawal of Application:

A taxpayer can’t withdraw Form No. 61 after submission.

8. Outcome of Form No. 61:

The Department may obtain records or information from the financial institution. Information received is used for verification of claim of deduction claim, and based on verification, if the Assessing Officer is satisfied with the application, he may allow the deduction in respect of payments made to a financial institution located in a Notified Jurisdictional Area. But, if the Assessing Officer is not satisfied, he may disallow such deduction claims of the applicant.

9. Common Changes made across Forms:

i. To make forms system-friendly and enable e-filing and uploading, grouping of name, address, PAN and Aadhaar has been separated into different boxes.

ii. Assessment/financial/previous year(s) have been replaced with tax year(s).

iii. Sections and clauses have been aligned with amendments in the Income-tax Act.

iv. Currency symbol “Rs.” has been replaced with “₹”.