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Form 61A : Annual Information Return (AIR)

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Fatema Rasiwala

AIR
Form 61A
Income Heads
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.

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.

 

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.

 

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.

 

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.

 

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.

 

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.

Circumstances under which Form 61A is rejected

AIR may be rejected due to the following reasons:

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.

How can I file my Form 61A?
Here are the steps on how to fill and submit your Form 61A correctly.
Read More
How can I file my Form 61A?
Here are the steps on how to fill and submit your Form 61A correctly.
Read More

Steps to file Form 61 (AIR)

  1. Visit the TIN-NSDL website

    Download your AIR Return Preparation Utility (RPU) provided through NSDLAIR RPU

  2. Next you download your AIR RPU

    This is how your downloaded AIR RPU form will look likeAIR document

  3. You need to fill in the required details in the given sheets under the downloaded excel file

    Post downloading the form

  4. Next you need to download the E-AIR FVU application

    To do this you need to download the latest JAVA softwareDownload application for AIR

  5. After setting up the application, you can now upload your excel sheet there

    If your file has any errors, the application will generate errors through the error file path. All errors need to be cleared in order to have the file accepted.

  6. Your accepted file needs to be copied on a CD or a Floppy

    Lastly, you need to visit the TIN-NSDL AIR section and skip to the 5th step and download Part A of Form 61AAIR Form 61A

  7. Next, visit your nearest TIN Facilitation Center (TINFC) and file your AIR return

    Now that you have your file on a CD or a Floppy and have your Part A of Form 61A filled.

Track Form 61A Filing Status

AIR service on TIN - Form 61A
AIR status view for filers - Form 61A
Status of AIR - Form 61A

FAQs

What is File Validation Utility (FVU)?

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.

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

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”

What are the Forms required for AIR?

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.

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?

    Thank you!

  2. I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?

  3. Hey @HarshitShah

    After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.

    Hope this helps!

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