statement of financial transactions Archives

How to file Form 61A of the Income Tax Act, 1961 online? Introduction Form 61A is a statement of financial transactions that need to be filed by certain entities as per the provisions of the Income Tax Act, 1961. This form is a mechanism to monitor and track high-value transactions conducted during a financial year. In this blog, we will discuss "What is Form 61A?", "Who needs to file it?", "How to file it online?" along with the due date of filing Form 61 A, and the consequences of non-filing of it. What is Form 61A of the Income Tax Act, 1961? It is a document required under the Income Tax Act, 1961, that mandates certain persons to furnish a statement of financial transactions to the Income Tax Department. The form contains details of financial transactions that have been undertaken by a person during a particular financial year. The purpose of this form is to help the Income Tax Department identify transactions that may not have been reported accurately by taxpayers. Who needs to file Form 61A? As per the Income Tax Act, 1961, any person or organization who is involved in certain high-value transactions during a financial year is required to file Form 61A. These entities include banking companies, cooperative banks, mutual funds, insurance companies, property registrars, and companies. Person has to file the form in the prescribed due date of filing Form 61 A. Due date of filing Form 61 A The due date for filing Form 61 A (statement of financial transactions) is 31st May of the assessment year. For example, for the financial year 2022-23, the due date of filing Form 61A would be 31st May 2023. It is important to note that failure to file this form on time can result in penalties and other consequences. Consequences of non-filing Form 61A Non-filing or delayed or not complying with the due date of filing Form 61 A (statements of financial transactions) can attract penalties under Section 271FA of the Income Tax Act, 1961. The penalty for non-filing or delayed filing of this form is Rs. 500 per day of default. However, the penalty amount cannot exceed the amount of the transaction that was not reported. In addition to penalties, non-filing or delayed filing of this form can also lead to scrutiny by the Income Tax Department and a higher chance of an audit. Conclusion In conclusion, Form 61A (Statement of financial transactions) is an important provision under the Income Tax Act, 1961 that requires specified entities to furnish details of financial transactions to the Income Tax Department. It plays an important role in promoting transparency and curbing tax evasion. The person is mandated to comply with the due date of filing Form 61 A.