Tax Compliances by Banks- Form 60, 61, 15CC, 15G & 15H

CA Haresh Kataria

New Electronic Tax Compliances by Banks

Electronic Filing of FORM 61 by Banks and Acceptance of FORM 60 – New Rules & Guidelines

Electronic Filing of Form 61 – 1^st January, 2016 – Rule 114D

Person who has received declaration in Form No. 60 on or after 1^st January, 2016 in relation to transactions specified in Rule 114B shall :

1. Furnish a statement in Form 61 containing particulars of such declaration to the Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data.

2. Retain Form No. 60 for a period of six years from the end of the financial year in which the transaction was undertaken.

Frequency of Filing of Form 61 – Rule 114D (2)

1. Form 60 received by 31^st March to be furnished by 30^th

2. Form 60 received by 30^th September to be furnished by 31^st

Acceptance of Form 60 – Guidelines

If a person is entering into transactions specified in Rule 114B he has to quote his PAN as required u/ s 139A(5) ( c) of Income-tax Act, 1961. If a person entering into these spectified transaction does not have a PAN , he has to make a declaration in Form 60 giving the particulars of the said transaction.

Form 60 has to be filled up and ID Proof and address proof is to be submitted.

Aadhaar Card, Election Card, Passport, Driving Licence serves as both ID proof and address proof.

Form 60 contains a declaration that the estimated total income is below the taxable limit.

If the amount in column 22b i.e. the estimated total income (other than agricultural income) is more than the taxable limit i.e Rs. 250,000 then the person accepting the declaration shall not accept the declaration unless PAN is applied for and column 21 (giving the acknowledgement no. of the PAN application) is duly filled in.

New Rule 114B – w.e.f 1^st April 2016 – Quoting of PAN

PAN No. is to be quoted or declaration in Form No.60 has to be taken in case of the following transactions with Bank

1. Opening an account (other than Basic Savings Bank Deposit Account or a time deposit not exceeding Rs.50,000 or aggregating to more than Rs.500,000 during a financial year and ).

2. Application for issue of debit card or credit card.

3. Opening of a demat account.

4. Deposits in cash exceeding Rs.50,000 during any one day.

5. Payment in cash exceeding Rs.50,000 during any one day for purchased of bank drafts.

6. A time deposit exceeding Rs.50,000 or aggregating to more than Rs.500,000 during a financial year.

7. Payment in cash or by way of bank draft or pay order or bankers cheque aggregating to more than Rs.50,000 in a financial year.

New Procedure for acceptance and submission of Form 15G & 15H

Form 15G and 15H – Declaration by person claiming receipt of certain incomes without TDS

New Rule 29C introduced by Notification No. 76/2015 dated 29^th September 2015 w.e.f. 1^st October, 2015.

Notification No. 4/2015 dated 1^st December, 2015 has specified the procedure, format and standards for furnishing of Form 15G and 15H.

Payee can submit self-declaration in Form 15G / 15H in

1. Paper form or

2. Electronically after verification through an electronic process.

Payer shall

1. Allot a Unique Identification Number (UIN) to each self-declaration received by him in Form No.15G and Form No. 15H respectively during every quarter of the financial year.

UIN shall have following 3 fields (a) (b) and ( c)

(a) (i) Form 15G–10 alphanumeric characters staring with G followed by 9 digits Eg. G000000001.

(ii) Form 15H–10 alphanumeric characters staring with H followed by 9 digits Eg. H000000001.

(b) Financial year for which the declaration is being furnished.

(c) TAN of the payer.

2. Retain Form No.15G and 15H for seven years from the end of the financial year in which the declaration is received and furnish the same to an income-tax authority for the purpose of verification or any proceedings under the Act.

3. Digitize paper declaration and the same shall bear sequence number out of the same running sequence number as used for online submission.

4. Furnish (Upload) the Form 15G and 15H declarations (digitized / electronic) received during a quarter, on quarterly basis.

5. Quote UIN in quarterly TDS statement against the transaction covered under 15G/H declaration.

Quarterly furnishing of New Form 15CC

Authorised Dealers of Foreign Exchange to submit quarterly statement in respect of outward remittances made

Rule 37BB has been substituted by the Income-tax (21^st Amendment) Rules, 2015 with effect from 1^st April 2016 vide Notification No. 93/2015 dated 16^th December 2015.

Rule 37BB has prescribed new Form 15CA and Form 15CB to be furnished for payments to a non resident or a foreign company.

Rule 37BB sub-rule (7) has cast a new obligation on the authorised dealers to furnish a quarterly statement in respect of remittances made for each quarter of the financial year in Form No.15CC.

Following details of the remittances made during the quarter are required to be furnished :

Sl. No.	Name of the remitter	PAN of the remitter	Name of the remittee	PAN of the remittee if available	Amount of remittance	Date of remittance	Country to which remittance is made	Purpose Code as per RBI

For 15CC is to be furnished quarterly electronically within fifteen days from the end of the quarter.

Annual Information Return renamed as Statement of Specified Financial Transactions (Section 285BA, Rule 114E)

New Rule 114E introduced with effect from 1^st April, 2016 vide Notification No. 95/2015 dated 30^th December, 2015 prescribes the nature of transactions and the threshold value above which information has to be submitted in Form No. 61A to be furnished by 31^st May, 2017 and by 31^st May every year thereafter.

Tabular Summary of specified transactions applicable to banks are as under

Sl. No.		Nature of Financial transaction	Aggregate Value in a financial year Rs.	Reporting Person
1	a	Cash Payments for purchase of bank drafts or pay orders or bankers cheques	10 lakhs or more	Banking company / institution, Co-operative Bank
	b	Cash Payments for purchase of pre-paid instruments issued by the RBI	10 lakhs or more	Banking company / institution, Co-operative Bank
	c	Cash deposits or cash withdrawals (including through bearer’s cheques ) in or from one or more current account of a person.	50 lakhs or more	Banking company / institution, Co-operative Bank
2		Cash deposits in one or more accounts (other than current account and time deposit ) of a person	10 lakhs or more	Banking company / institution, C o-operative Bank, Post Office
3		One or more time deposits (other than renewal) of a person	10 lakh or more	Banking company / institution, Co-operative Bank, Post Office, NBFC, Nidhi.
4	a	Payments made by any person, otherwise than by cash, against bills raised in respect of one or more credit cards issued.	10 lakhs or more	Banking company/institution , Co-operative Bank or any other company /institution issuing credit card
	b	Payments made by any person, in cash, against bills raised in respect of one or more credit cards issued.	1 lakhs or more	Banking company/institution , Co-operative Bank or any other company /institution issuing credit card
5		Receipts from any person for sale of foreign currency including credit of such currency to foreign exchange card or expense in such currency through a debit card or credit card or through issue of travelers cheque or draft or any other instrument	10 lakhs or more	Authorised Dealer in Foreign Exchange

Manner of computing the value of the transactions to be reported – Rule 114E(3)

While aggregating the amounts for determining the threshold amount for reporting in respect of any person :

(a) all the accounts of the same nature maintained in respect of that person during the financial year shall be taken into account .

(b) all the transactions of the same nature recorded in respect of that person during the financial year shall be aggregated .

(c) where the account is maintained or transaction is recorded in the name of more than one person, attribute the transaction to all the persons.

(d) apply the threshold limit separately to cash deposits in current account or cash withdrawals from current account to be reported under Sl.No.1 (c ) of the above table.

The above rule shall not be applicable to a reporting person mentioned at Sl. No.5 i.e. a Authorised Dealer in foreign exchanger.

Banks and other entities will have to make arrangements for capturing the abovesaid information w.e.f 1^st April 2016 for the purpose of reporting in Form No. 61A for the financial year 2016-17.