Filing of Statement of Financial Transaction SFT u/s 285BA-Form-61A New Rule 114E for Annual Information Return (AIR) – CBDT Notification-95/2015.
New Rule 114E of the income tax rules requires all assessees liable for tax audit u/s 44AB will have 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.
To keep a watch on high value transactions undertaken by the taxpayer, the Income-tax Law has framed the new concept of furnishing of “Statement of financial Transactions” in Form No 61A (previously called as ‘Annual Information Return (AIR)’.
Filing SFT is obligatory only if there are any reportable transactions and not otherwise. 285BA puts obligation only if there is a reportable transaction. As per new rule following persons shall be required to furnish statement of financial transactions or reportable accounts registered or recorded or maintained by them during a financial year to the prescribed authority on or after 1st day of April, 2016.
- Any person who is liable for audit under section 44AB of the Act
- Banking Company
- Co-operative Bank
- Post Master General of Post office
- Nidhi referred to in sec 406 of the Companies Act 2013
- Non-banking Financial Company (NBFC)
- Any Institution issuing Credit Card
- Company or Institution issuing bonds or debentures
- Company issuing shares
- Trustee of a Mutual Fund
- Authorized Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999
- Inspector-General or Sub-Registrar appointed under Registration Act, 1908
Penalty:
Non-furnishing of statement of financial transaction or reportable account will attract penalty under section 271FA. Penalty can be levied of Rs. 100 per day of default. However, section 285BA(5) empower the tax authorities to issue a notice to the person directing him to file the statement within a period not exceeding 30 days from the date of service of such notice and in such a case person shall furnish the statement within the time specified in the notice.
If person fails to file the statement within the specified time, then a penalty of Rs. 500 per day will be levied from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.
Nature and Value of Transactions:
| Sl No | Nature and value of Transactions | Class of Person |
| 1 | Payment of cash aggregating Rs. 10,00,000 or more in a year for purchase of DD, Pay Orders, Bankers Cheque. | • A Banking Company, • Co-operative Bank |
| 2 | Payment made in cash aggregating to Rs. 10,00,000 or more in a year for purchase of pre-paid instruments issued by RBI | • A Banking Company, • Co-operative Bank |
| 3 | A cash deposit aggregating to Rs. 10,00,000 or more in a year in one or more bank accounts (other than current account or time deposit) | • A Banking Company, • Co-operative Bank, • Post Master General of Post office |
| 4 | A Cash deposit aggregating to Rs. 50,00,000 or more in a year in one or more current account of a person | • A Banking Company, • Co-operative Bank |
| 5 | A Cash withdrawal aggregating to Rs. 50,00,000 or more in a year from one or more current account of a person | • A Banking Company, • Co-operative Bank |
| 6 | One or more time deposit (other than renewal) aggregating to Rs. 10,00,000 or more of a person | • A Banking Company, • Co-operative Bank, • Post Master General of Post office, • Nidhi referred to in sec 406 of the Companies Act 2013 |
| 7 | Credit card payment made by any person aggregating to Rs. 1,00,000 or more in a year in cash or Rs. 10,00,000 or more by any other mode | • A Banking Company, • Co-operative Bank, • Any Institution issuing Credit Card |
| 8 | Receipt from any person of an amount agregating to Rs.10,00,000 or more for acquiring bonds or debentures issued. | • Company or Institution issuing bonds or debentures |
| 9 | Receipt from any person of an amount aggregating to Rs. 10,00,000 or more in a year for acquiring shares issued by the company (including share application money) | • Company issuing shares |
| 10 | Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to Rs. 10,00,000 or more in a year. | • A company listed on a recognised stock exchange |
| 11 | Receipt of an amount aggregating Rs. 10,00,000 or more for acquiring units of one or more schemes of a Mutual Fund. (other than switching of funds from one scheme to another) | •Trustee of a Mutual Fund |
| 12 | Receipt from any person for sale of foreign currency or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to Rs. 10,00,000 or more in a year | Authorized Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999 |
| 13 | Purchase or sale by any person of immovable property for an amount of Rs. 30,00,000 or more or valued by the stamp valuation authority referred to in section 50C of the Act at Rs. 30,00,000 or more. | Inspector-General or Sub-Registrar appointed under Registration Act, 1908 |
| 14 | Receipt of cash payment exceeding Rs. 2,00,000 for sale of goods or providing services of any nature other than those specified above | Any person who is liable for audit under section 44AB of the Act |
