E filing of form 61

E Filing of form 61

1. Form 61 - Furnishing a Statement Containing Particulars of Form No. 60 Section 139A(5)(c) Income Tax Act, 1961 Read With Rule 114D, 114B & 114C By: Direct Tax Vertical Asija & Associates LLP Chartered Accountants E-FILING OF FORM 61

2. CONTENTS OF PRESENTATION Overview Rule 114B & Form 60 Rule 114C Rule 114D & Form 61 Verification of Form 61 Penalty of Non-compliance. Advisory on Impact & Compliance of the said Law by your entity.

3. In order to curb circulation of black money and widening of tax base, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transaction exceeds the specified limit. Any person who does not have a PAN and who enters into any transaction specified in this rule, shall make a declaration in Form No. 60 giving therein the particulars of such transaction either in paper form or electronically. Rule 114B specifies the transactions in which PERSONS entering into said transaction shall quote his PAN in ALL DOCUMENTS pertaining to the specified transactions . Rule 114C cast the responsibility of VERIFICATION of PAN quoted in ALL DOCUMENTS pertaining to transactions specified in rule 114B. Rule 114D specifies the TIME AND MANNER in which persons referred to in rule 114C shall furnish Form 61 through online transmission of electronic data. Overview

4. Every person shall quote his PAN in all documents pertaining to the transactions specified. Click here to view the complete list of transactions requiring PAN as specified in Rule 114B. There are 18 Type of Transactions which are specified in Rule 114B, some of them are:- Sale or purchase of a motor vehicle or vehicle, other than two wheeled vehicles . – All Transaction are Covered Payment to a hotel or restaurant against a bill or bills at any one time - Where Payment is done in cash of an amount exceeding ₹ 50,000/-. Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time - Where Payment is done in cash of an amount exceeding ₹ 50,000/-. – Sale or purchase, by any person, of goods or services of any nature - Amount exceeding ₹ 2,00,000/- per transaction Transaction related to bank, like Cash Deposit, DD making As per rule 114b

5. Persons who do not hold PAN and have executed any of the transaction as specified in Rule 114B are required to fill and provide Form No. 60 in Lieu of PAN. The declaration in Form No. 60 can be submitted either in paper form or electronically under the electronic verification code ). Form No. 60 has to be retained by the receipent for a period of 6 years. To view Form No. 60, Click Here rule 114b & Form - 60

6. Any person , who, in relation to a transaction specified in rule 114B, has received any document : - In case of PAN, shall ensure after VERIFICATION that PAN has been duly and CORRECTLY mentioned therein. In case of Form 60 , they shall ensure that a declaration in Form 60 has been duly furnished with complete particulars . As per rule 114c

7. Every person referred in: - Rule 114C(1)(b) to (k), Rule 114C(2) who is required to get his accounts audited under section 44AB of the Act And who has received any declaration in Form No. 60 Shall furnish a ONLINE statement in Form No. 61 containing particulars of declarations received in Form 60 The time line for filing Form 61 is :- Form 60 received by the 30 th September, be furnished by 31 st October of that year; and Form 60 received by the 31 st March, be furnished by 30 th April of next financial year. As per rule 114d

8. Non compliance of provisions of section 139A may lead to imposition of penalty of ₹ 10,000/- by the Assessing Officer. If a person who is required to quote his PAN in any document as per section 139(5)(c), quotes a number which is knowingly false, a penalty of ₹ 10000/-, shall be imposed on him. Any person making a false statement in Form 60 / 61 shall be liable to prosecution under section 277 of the Income‐tax Act, 1961 and on conviction be punishable with rigorous imprisonment which may extend from 3 months to 7 years with a fine. Penalty for non-compliance

9. S. No. Nature of Transaction Applicability Transactions Covered 1. Motor vehicle (other than two wheeler) Resident/ Non Resident All Transactions 2. Opening an account (other than time deposit) Resident/Non Resident All new accounts other than Time deposit with a banking company. Co-operative banks also to comply Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts) 3. Credit card/Debit Card Resident Application to banking company including Co-operative Banks/any other company/institution for issue of credit card/ debit card 4. Demat Account Resident/Non Resident Opening a Demat account 5. Hotel/restaurant bill(s) Resident Cash payment exceeding ₹ 50,000 at any one time transactions listed in Rule 114b

10. S. No. Nature of Transaction Applicability Transactions Covered 6. Foreign travel or purchase of foreign currency Resident Cash payment exceeding ₹ 50,000 at any one time 7. Mutual fund units Resident/ Non Resident Payment of ₹ 50,000/-or more for purchase 8. Debentures/ bonds Resident/ Non Resident Payment of ₹ 50,000/-or more for acquiring debentures/ bonds 9. RBI bonds Resident Payment of ₹ 50,000/-or more to RBI for acquiring bonds 10. Deposits with a banking company/Co-Operative banks/banking institutions/ Post office Resident/ Non Resident Cash Deposits exceeding ₹ 50,000/-in one day , or; Cash Deposits aggregating to ₹ 2,50,000/ during the period 9th November, 2016 to 30th December, 2016 11. Cash purchase of bank drafts/ pay orders/ banker's cheques Resident Amount in cash exceeding ₹ 50,000/- or more during any one day transactions listed in Rule 114b

11. S. No. Nature of Transaction Applicability Transactions Covered 12. Time deposit with a banking company/ Co-operative Banks/ Post Office/ Nidhi Companies/ NBFC only Resident/ Non Resident Time Deposit exceeding ₹ 50,000/-or; Time Deposits aggregating to more than Rs.5 lakhs during a financial year 13. Cash cards/ prepaid instruments issued under Payment & Settlement Act Resident Cash payment aggregating to more than ₹ 50,000 in a year 14. Life insurance premium Resident/ Non Resident Payment of ₹ 50,000/-or more in a year as premium to an insurer 15. Sale or purchase of securities Resident/ Non Resident Contract for sale/purchase of a value exceeding ₹ 1 lakh 16. Shares of unlisted company Resident/ Non Resident Purchase or sale of shares of an unlisted company for an amount exceeding ₹ 1 lakh per transaction transactions listed in Rule 114b

12. Sr. No. Nature of Transaction Applicability Transactions Covered 17. Immovable property Resident/ Non Resident Sale/ purchase exceeding ₹ 10 lakh; or Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh 18. Purchases or sales of any goods or services other than mentioned in SR No. 1to17 Resident Amount exceeding ₹ 2 lakh per transaction. transactions listed in Rule 114b

13. For a detailed discussion and professional advisory pertaining to the applicability and compliance of the said provision of law by your entity, fix an Appointment with our Direct Tax Vertical CA Vasudha Jain Asso . Director ([email protected]) CA Ashish Kapoor Partner In Charge ([email protected]) Email @ [email protected] Asija & Associates LLP Chartered Accountants Ph. no. : 0522- 4004652, 2205072 THANK YOU !

14. This presentation has been prepared by our firm to provide a gist of the applicable law pertaining to the quoting of PAN with respect to specified transactions as per Section 139(5)(c), read with Rule 114B to 114D of Income Tax Rules, 1962, For detailed insight and for better understanding of the various provision of the said law, the said presentation should be read along with related provision of Income Tax Act, 1961. Neither our firm nor any partner or employee or article of our firm shall responsible for any decision taken on the basis of the said presentation and without obtaining our professional guidance or consultation on the matter for which reliance was made on this presentation.” DISCLAIMER