STF Form 61A

STF Form 61-A

1. Statement of Financial Transactions (SFT) in Form 61A Section 285BA Income Tax Act, 1961 Read With Rule 114E By: Direct Tax Vertical Asija & Associates LLP Chartered Accountants E-FILING OF FORM 61A

2. CONTENTS OF PRESENTATION Overview Section 285BA Rule 114E & Form 61 Penalty of Non-compliance. Advisory on Impact & Compliance of the said Law by your entity.

3. OVERVIEW W.e.f. 01/04/2016, CBDT has replaced the provision of Income Tax Rule - 114E, Form 61A with amended rules vide of Notification No. SO 3545(E) [95/2015 (F.NO.142/28/ 2012 - (SO)TPL)], Dated 30-12-2015. W.e.f. 9th April 2018 , registration, statement upload and all other facilities for Form No. 61, 61A and 61B have been migrated from e-filing portal to the Reporting Portal   (https://report.insight.gov.in) New Rule 114E of the Income Tax Rules requires all assessees liable for tax audit u/s 44AB to file statement of financial transactions  in Form 61A , in case of receipt of cash payment exceeding of Rs. 2,00,000 /- for sale of goods/services of any nature. Statement of  ‘high value financial transactions ’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by  ‘specified persons ‘ in respect of  ‘specified transactions ‘ registered or recorded by them during the financial year.

4. As Per Section 285BA Any person w ho is responsible for Registering, Maintaining books of account or other document containing a record of any specified financial transaction or any reportable account Shall furnish a statement in respect of such specified financial transaction To the income-tax authority or such other authority or agency as may be prescribed.

5. Specified financial transaction “ Specified financial transaction " means any— Transaction of purchase, sale or exchange of goods or property or right or interest in a property; or Transaction for rendering any service ; or Transaction under a works contract ; or Transaction by way of an investment made or an expenditure incurred; or Transaction for taking or accepting any loan or deposit which may be prescribed.

6. As Per Rule 114e The statement of financial transaction shall be furnished in Form No. 61A online and shall be verified in the manner indicated therein. Form 61A shall be furnished on or before the 31st May , immediately following the financial year in which the transaction is registered or recorded There are 13 transactions in relation to which the said statement needs to be furnished. In some cases, our transaction may be reported.

7. As per sub rule (6)(a) of Rule 114E, every reporting person/entity shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of the Designated Director and the Principal Officer and obtain a registration number In exercise of the powers delegated by CBDT under sub-rules (4)(a) and (4)(b) of Rule 114E of the Income tax Rules 1962, the Principal Director General of Income-tax (Systems) lays down additional procedure for Acceptance of Statement of Financial Transactions from Sub-Registrar Office and Post Office As Per Rule 114e

8. S. No. Nature and Value of Transaction Class of person (reporting person) 1. Payment made in cash for purchase of bank drafts or pay orders or banker's cheque of an amount aggregating to ₹10,00,000/- or more in FY. Payments made in cash aggregating to ₹10,00,000 /- or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007). Cash deposits or cash withdrawals (including through bearer's cheque) aggregating to ₹50,00,000/- or more in a financial year, in or from one or more current account of a person. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). transactions listed in Rule 114E

9. S. No. Nature and Value of Transaction Class of person (reporting person) 2. Cash deposits aggregating to ₹ 10,00,000/- or more in a FY, in one or more accounts (other than a current account and time deposit) of a person A banking company or a co-operative bank to which the Banking Regulation Act, applies (including any bank or banking institution referred to in section 51 of that Act); Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). 3. Payments made by any person of an amount aggregating to— ₹1,00,000/- or more in cash; or ₹10,00,000/- or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a FY. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card. transactions listed in Rule 114E

10. S. No. Nature and Value of Transaction Class of person (reporting person) 4. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ₹10,00,000/- or more in a FY of a person. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934, to hold or accept deposit from public. transactions listed in Rule 114E

11. S. No. Nature and Value of Transaction Class of person (reporting person) 5. Receipt from any person of an amount aggregating to ₹10,00,000/- or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). A company or institution issuing bonds or debentures . 6. Receipt from any person of an amount aggregating to ₹10,00,000/- or more in a financial year for acquiring shares (including share application money) issued by the company. A company issuing shares 7. Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ₹10,00,000/- or more in a financial year. A company listed on a recognized stock exchange purchasing its own securities under section 68 of the Companies Act, 2013. transactions listed in Rule 114E

12. S. No. Nature and Value of Transaction Class of person (reporting person) 8. Receipt from any person of an amount aggregating to ₹10,00,000/- or more in a FY for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund). A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. 9. Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travelers cheque or draft or any other instrument of an amount aggregating to ₹10,00,000/- or more during a FY. Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999). 10. Purchase or sale by any person of immovable property for an amount of ₹30,00,000/- or more or valued by the stamp valuation authority referred to in section 50C of the Act at ₹30,00,000/- or more. Inspector-General appointed under section-3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. transactions listed in Rule 114E

13. S. No. Nature and Value of Transaction Class of person (reporting person) 11. Receipt of cash payment exceeding ₹2,00,000/- for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.) Any person who is liable for audit under section 44AB of the Act. 12. Cash deposits during the period 09 th November, 2016 to 30th December, 2016 aggregating to— ₹12,50,000/- or more, in one or more current account of a person; or ₹2,50,000/- or more, in one or more accounts (other than a current account) of a person. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898. transactions listed in Rule 114E

14. S. No. Nature and Value of Transaction Class of person (reporting person) 13. Cash deposits during the period 1 st of April, 2016 to 9 th November, 2016 in respect of accounts that are reportable under Sl.No.12. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). transactions listed in Rule 114E

15. Penalty For Non-compliance Under Section 271FA , if a person who is required to furnish statement of financial transaction or reportable account u/s 285BA, fails to do so within the said time period, a penalty of ₹ 500/- per day shall be imposed on him for every day during which the failure continues. If a person fails to furnish such statement within the time period as specified in the notice issued u/s 285BA(5 ), a penalty of ₹ 1000/- per day shall be imposed on him for every day during which the failure continues. Under section 271FAA , if a prescribed reporting financial institution who is required to furnish statement of financial transaction or reportable account u/s 285BA(1)(k) , provides inaccurate information, then such person, shall be liable to pay a penalty amounting to ₹50,000/-

16. 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 !

17. T his presentation has been prepared by our firm to provide a gist of the applicable law pertaining to the furnishing a statement of specified financial transaction or reportable accounts as per Section 285BA, read with Rule 114B to 114E 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