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 who is responsible for
i. Registering,
ii. 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. a) 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.
b) 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).
c) 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
(i) 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);
(ii) 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—
a) ₹1,00,000/- or more in cash; or
b) ₹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.
(i) 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);
(ii) Post Master General as referred to in clause (j) of section 2
of the Indian Post Office Act, 1898 (6 of 1898);
(iii) Nidhi referred to in section 406 of the Companies Act, 2013
(18 of 2013);
(iv) 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 09th November,
2016 to 30th December, 2016 aggregating to—
a) ₹12,50,000/- or more, in one or more current
account of a person; or
b) ₹2,50,000/- or more, in one or more
accounts (other than a current account) of a
person.
a) 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);
b) 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 1st of April,
2016 to 9th November, 2016 in respect of
accounts that are reportable under Sl.No.12.
a) 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)
b) 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
(vasudha.jain@asija.in)
CA Ashish Kapoor
Partner In Charge
(ashish.kapoor@asija.in)
Email @ incometax@asija.in
Asija & Associates LLP
Chartered Accountants
Ph. no. : 0522- 4004652, 2205072
THANK YOU !

17.  This 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.”
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