To keep an eye on the high valued transactions made by the taxpayers, the new law has been framed by the Income Tax department where by the Form No 61 which was previously known as Annual Information Return will have to be furnished as Statement of Financial Transactions. Thus, by Filing Form No 61A for statement of financial transactions, income tax authorities will be able to asses all the transactions of higher values that a person has made in an financial year.
Why Introduction of Filing Form No 61A
Basically, this law will help in the collection of all the information pertaining to some high value transactions that a person makes in the period of one year. There are basic provisions that must be provided.
The new rule called the 114E needs the assesses who are liable for the audit and the statement of financial transactions is to be filed. This is for the goods and services rendered and all the other help provided.
The people who are liable for audit are Banking companies, Co-operative Bank, non-banking financial company, any institution that can get you this before may 31st. but there is a catch. The tax authorities need to issue a notice to the defaulters who haven’t filed the statement for their financial transactions before may 31.
Non filers for form 61A may get notice from Income Tax Department
But, the section 285BA(5) gives power to the tax authorities so that they can issue notices to persons who haven’t filed the statement within the specified time frame. Only a period of 30 days is granted from the date of service of such kind of a notice is provided.
Filing Form No 61A for statement of financial transactions
In case the statement of financial transaction is not furnished, then there will definitely be a penalty under the section 271FA. The penalty levied can be almost upto Rs 100 a day. Also, if the statement is not even filed with a time period of 30 days, a 500 Rs penalty will be imposed from the day after the day on which the time is specified in the notice for granting with the statement till it expires.
In case, after the statement has been filed, the person finds out that there is some inaccuracy given in the statement, then it has to be reported to the income-tax authority in a stipulated time period of ten days and then provide with the right information in the manner that it will be prescribed.
Any Mistake while filing form 61A- Income Tax Department may allow time of 30 days
Whereas, the income tax authority may also copy the problem of the person and give him the chance the rectify the problem within 30 days from the date that it has been told and within the extended period as it is allowed by the income tax authority. But in case, the person is unable to correct the problem within the specified period then this statement will be considered invalid and the provisions of the Act will apply.
The consequences of filing wrong or defective statement of financial transaction or form 61A have basically three kinds of Implications:
- The person is aware of the inaccuracy at the time the statement is furnished but he doesn’t inform the income tax authority or some other authority.
- If the statement is furnished and then after that, there is a discovery made by the person that but in some way or the other fails to furnish the exact information within 10 days, then the prescribed income tax authority may tell the person to pay, whether by penalty or an amount of fifty thousand rupees.
- If there is an inaccuracy if the person has not complied with the requirement that is prescribed under the section 285BA(7)or maybe is deliberate on the person’s part.