Understanding Form 61A: Statement of Specified Financial Transaction (SFT)

Purpose of Form 61A A crucial report under the Income-tax Act, 1961, capturing significant transactions to enhance tax compliance. Section 285BA Explained Mandates specific entities to report Specified Financial Transactions (SFTs), aiding tax oversight.

Who Files Form 61A Entities including NBFCs, banks, mutual funds, and those audited under Section 44AB. Specified Financial Transactions Encompass deposits, loans, property transactions, and other notable financial dealings. Due Date and Penalties Submission deadline: May 31st following the financial year, with penalties for non-compliance.

Rectifying Inaccuracies Procedures for correcting errors within specified timelines to avoid penalties. Consequences of Defective Reporting Penalties for inaccurate or incomplete reporting, ensuring data integrity.

Steps to File Form 61A Register, prepare XML files, sign and encrypt, package, submit, and receive acknowledgment. Parts of Form 61A Divided into sections A to D, capturing different aspects of financial transactions comprehensively.