Form 61A is a report that certain people or businesses must submit to the Income Tax Department when high-value transactions take place. It helps the government track big money movements and detect tax evasion.
Think of it like this:
If someone suddenly deposits ₹15 lakh in cash, the bank must inform the tax department. Form 61A is how they report such things.
Purpose of Form 61A
- To collect financial intelligence on large or suspicious transactions
- To help the Income Tax Department monitor black money
- To ensure people pay tax on big deals
Who Must File Form 61A?
Entities like:
- Banks
- Post offices
- Mutual fund houses
- Registrars (for property deals)
- Companies issuing shares or bonds
They must file Form 61A if any specified financial transaction (SFT) happens.
Transactions Reported in Form 61A
Some examples of high-value deals that need to be reported:
- Cash deposit > ₹10 lakh in a year in a savings account
- Fixed deposits > ₹10 lakh in a year (excluding renewals)
- Credit card payments > ₹1 lakh in cash or > ₹10 lakh otherwise
- Purchase or sale of immovable property > ₹30 lakh
- Investment in mutual funds, shares, debentures, or bonds > ₹10 lakh
Components of Form 61A
- Part A – General Information
- PAN, name, contact details of the reporting entity
- Part B – Account-based Transactions
- Like savings account or credit card details
- Part C – Non-account Transactions
- Like purchase of property, investments in shares or mutual funds
- Part D – Property Transactions
- Details about buyer, seller, and property value
Penalty for Not Filing Form 61A
If someone fails to file Form 61A:
- ₹500 per day of delay (initial)
- If not filed even after notice: ₹1,000 per day
- For incorrect information: penalty up to ₹50,000
Important Points
- Form 61A must be submitted online through the e-filing portal
- Deadline: usually by May 31st every year (for the previous financial year)
- PAN is mandatory for all reported transactions
Simple Example:
Let’s say Neha buys a house worth ₹40 lakh.
The registrar handling the property deal must report this in Form 61A to the Income Tax Department.
Conclusion
Form 61A is a tool to report large transactions to the tax department. It doesn’t mean you’re in trouble—it just helps keep the system clean and fair. Knowing which deals are reported can help you stay transparent and avoid penalties.
