Form 61A: Who needs to file Annual Information Return as per TIN-NSDL?

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Fatema Rasiwala

AIR
TIN NSDL

Some individuals need to file Form 61A to justify their High Value Transactions, you can track the status of this filing on the TIN-NSDL website. Entities such as Banks and other Financial Institutes are responsible to furnish certain transaction details through Form 61A (AnnualInformation Return). Hence, with an aim to curb black money and to track high-value transactions, the government has implemented new reporting guidelines. Therefore, “High valued transaction” of Individuals and Businesses are monitored u/s 285BA of The IncomeTax Act.

Form 61A contains details of the transaction and reportable account maintained by the specified persons during the Financial Year. The Income Tax Department using AIR monitors these High valued transactions.

Received a notice for High Value Transactions?
Read here to see how to file AIR using Form 61A.
Read More
Received a notice for High Value Transactions?
Read here to see how to file AIR using Form 61A.
Read More

Who should file Form 61A(AIR)?

According to the section 285BA of the Income Tax Act, 1961, “Specified persons” are required to record and report “High-value financial transactions” of individuals and file Form 61A, upon receipt of notice. For instance, these specified persons can be:

Detailed information on who should file Form 61A (AIR) as per the Tax Information Network (TIN) is as follows:

Sr. No.

 

Class of Person

Nature and value of the transaction

Clarification by Central Board of Direct Taxes vide circular

 

1.

 

A Banking Company to which the Banking Regulation Act, 1949 applies.

 

Cash deposits of any person totaling to Rs. 10,00,000 or more in a year in the savings account of any bank.

 

The total of all the cash deposits in the savings account of a person should be reported as one single transaction. However, the date of the transaction should be the last date of the financial year.

 

 

2.

 

A Banking Company to which the Banking Regulation Act, 1949 applies or any other Company or Institution issuing the credit card.

 

 

If credit card payments against a person are Rs.2,00,000 or more in a financial year.

 

The total of all the payments by a person to the credit card company should be reported as one transaction. And hence the date of the transaction is to be the last date of the financial year.

 

3.

 

A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorized by the trustee in this behalf.

 

 

This is if you are acquiring any units of fund amounting to Rs. 2,00,000 or more in a financial year.

 

The amount actually received from the transacting party and not the amount relating to the allotment is to be reported.

 

4.

 

A Company or Institution issuing bonds or debentures.

 

This is if you are acquiring any bonds or debentures amounting to Rs.5,00,000 or more in a financial year by the Company or institution.

 

 

The amount actually received from the transacting party and not the amount relating to the allotment is to be reported.

 

5.

 

A Company issuing shares through public or rights issue.

 

If you are acquiring any shares of a company amounting to Rs. 1,00,000 or more

 

 

The amount actually received from the transacting party and not the amount relating to allotment is to be reported.

 

6.

 

Registrar or Sub Registrar appointed under section 6 of the Registration Act, 1908.

 

If you are purchasing or selling any immovable property that values Rs.30,00,000 or more in a financial year

 

Certain situations where the transaction of property valued at Rs. 30,00,000 involves joint parties and value for one or more parties is less than Rs. 30,00,000.

In such situations, all such transactions are to be reported even though the value of transaction in the hands of one or more of the joint parties is less than the threshold limit.

 

 

7.

 

An officer of the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 who is duly authorized by the Reserve Bank of India in this behalf.

 

 

This is applicable if you are acquiring any bonds issued by the RBI amounting to Rs. 5,00,000 rupees or more in a year

 

The total of all the receipts from a person is required to be reported as one transaction and the date of the transaction is to be mentioned as the last date of the financial year.

Moreover, AIR should be furnished to the Director of Income Tax (DIT). But, NSDL has been authorized to receive AIR through the TIN Facilitation Centers on behalf of DIT.

Filed your Form 61A?
Read our article here on how to track your submission!
Read More
Filed your Form 61A?
Read our article here on how to track your submission!
Read More

FAQs

What is a “High valued transaction”?

“High valued transaction” are those transactions that are tracked by the Income Tax Department. This is to say it requires to be mandatorily get reported through a “specified person” such as a bank or any other Financial Institutes in the prescribed given format which is Form 61A or AIR.

Will I get an Income Tax Notice if I deposited 12,00,000 cash in my savings account?

Unfortunately, Yes. If you deposit Rs. 10,00,000 and more in cash to any savings account in a particular FY you will be served a notice from The Income Tax Department. However, If you don’t exceed the limit you won’t be receiving a notice.

How does the Income Tax Department (ITD) come to know about my “High valued Transactions”?

Well, If any Individual/Business makes a Financial Transaction which can be considered as a “High valued Transactions”. So the Bank and other Financial Institutes have to report the transaction with the registered PAN of that Person. Hence, ITD can come to know about your “High valued Transactions”

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