Entities such as Banks and other Financial Institutes are responsible to furnish certain transaction details through Form 61A (Annual Information Return). 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.
Circumstances under which Form 61A is rejected:
AIR may be rejected due to the following reasons:
- Filers have to mention the filer’s name, TAN, PAN, Form number and the Current Financial Year. Any mismatches with the form and file submitted will end up in rejection.
- If the return file provided on Computer media is not generated by the AIR FVU.
- When you don’t file Form 61A (Part A) in the physical paper format along with the AIR file.
- When your Form 61A (Part A) is not duly signed or verified.
- Overwriting on Form 61A (Part A) not approved by the person who has signed the same.
- When you use more than one computer to file the AIR. Also, when computer media finds your submission corrupted or with any viruses.
- If you compress the AIR file using any other compression utilities than Winzip 8.1 or ZipItFast 3.0 or higher version.
- Mismatch of the total in Form 61A with the total of SAM (Statement Acceptance Module) at the TIN Facilitation Centre.
Consequences of not submitting Form 61A on Time
Tax authorities of India, under section 285BA (5) can issue a notice to a specified person asking them to file Form 61A (Annual Information Return) within a period of 30 days from the date of receiving the notice. If they fail to file the statement within the allotted time then they will face a penalty of INR 1,000 per day after the date mentioned in the notice for furnishing the statements.
FVU created by NSDL is a program to verify the format of AIR submitted by filers and to measure its accuracy.
FVU will accept AIR submissions only if it is error-free. If there are any errors in the details an error code and error description and details about the error will be displayed.
You can resubmit your form after correcting the errors. If there remains no error in filing AIR then the “File Validation Successful” message pops up.
If any Individual/Business makes a Financial Transaction which can be considered as “High value Transactions”, then the Bank and other Financial Institutes are responsible to report the transaction to the ITD, along with the registered PAN of that Person. Hence, ITD can come to know about your “High valued Transactions”
AIR can be furnished through Form 61A (Part B) in a digitized form in a CD/Floppy. While Form 61A (Part A) in a paper format duly signed.