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INCOME TAX
- SFT- FORM 61
SFT- FORM 61
- Form 61A, also known as the Statement of Financial Transactions, is required under Section 285BA of the Income-Tax Act and Rule 114E of the Income Tax Rules 1962 for specified reporting persons engaged in financial transactions.
- Specified financial transactions that necessitate the submission of Form 61A include the sale, purchase, or exchange of goods, works contracts, services provided, investments made, and deposits accepted or loans taken.
- Entities mandated to furnish Form 61A include banking companies, cooperative banks, non-banking financial companies (NBFCs), credit card-issuing institutions, entities covered under audit as per section 44AB of the Income Tax Act, post offices, Nidhi companies, and entities involved in the issuance of bonds, debentures, shares, or listed on recognized stock exchanges.
- The deadline for filing Form 61A is the 31st of May of the following year for every previous financial year in which the transactions occur. Non-compliance with this deadline may result in penalties under Section 271FA, ranging from Rs 500 per day for the initial failure to Rs 1000 per day for continued default.
- Taxpayers and reporting entities must understand and comply with these provisions, ensuring the timely and accurate submission of Form 61A to avoid penalties and legal repercussions. Staying informed about any updates or amendments is essential for fulfilling these obligations in a compliant manner.
