Filing of Form 60, 61 and 61A under Income Tax Provisions (Compliances for cash transactions) January 7, 2016

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1 Income Tax Updates Filing of Form 60, 61 and 61A under Income Tax Provisions (Compliances for cash transactions) January 7, 2016 Khandhar Mehta & Shah Chartered Accountants

2 Form. 60: In order to curb circulation of black money and widening of tax base, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transaction exceeds specified limit. Persons who do not hold PAN are required to fill Form. 60. The list of transactions requiring PAN are given at 'Annexure-A Form. 61: The following person who has received any declaration in Form. 60 for the transactions specified in Annexure-A on or after 1st day of January, 2016 shall furnish a statement in Form. 61 electronically containing particulars of such declarations. Such Persons should retain Form. 60 for a period of 6 years from the end of the financial year in which the transaction was undertaken: The person who are required to file Form 61 includes: A. Every person who has received Form 60 for the transactions mentioned in Annexure A [Excluding transactions at SR. 5, 6 and 18 i.e. hotels/foreign travel and cash transactions > 2 Lakh], and; B. Every person who has received Form 60 for the transactions mentioned in SR. 5, 6 and 18 (i.e. hotels/foreign travel and cash transactions > 2 Lakh) of Annexure A AND who is required to get its accounts audited under Section 44AB of the act.

3 Annexure-A - List of Transactions requiring PAN Nature of Transactions Applicability Transactions covered 1 Motor vehicle (other than two wheeler) 2 Opening an account (other than time deposit) Resident/n Resident Resident/n Resident All Transactions All new accounts other than Time deposit with a banking company. Co-operative banks also to comply Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts) 3 Credit card/debit Card Resident Application to banking company including Co-operative Banks/any other company/institution for issue of credit card/debit card. 4 Demat Account Resident/n Resident Opening a demat account 5 Hotel/restaurant bill(s) Resident Cash payment exceeding Rs. 50,000 at any one time 6 Foreign travel or purchase of foreign currency Resident Cash payment exceeding Rs. 50,000 at any one time

4 Nature of Transactions Applicability Transactions covered 7 Mutual fund units Resident/n Resident Payment of Rs.50,000/- or more for purchase 8 Debentures/ bonds Resident/n Resident Payment of Rs.50,000/- or more for acquiring debentures/ bonds 9 RBI bonds Resident Payment of Rs.50,000/-or more to RBI for acquiring bonds 10 Deposits with a banking company/co-operative banks/banking institutions/ Post office 11 Cash purchase of bank drafts/ pay orders/ banker's cheques 12 Time deposit with a banking company/co-operative Banks/Post Office/Nidhi Companies/NBFC only Resident/n Resident Resident Resident/n Resident Cash Deposits exceeding Rs.50,000/- in one day, or; Cash Deposits aggregating to Rs.2,50,000/- during the period 9 th vember, 2016 to 30 th December, 2016 Amount in cash exceeding Rs.50,000/- or more during any one day Time Deposit exceeding Rs.50,000/- or; Time Deposits aggregating to more than Rs.5 lakhs during a financial year

5 Nature of Transactions Applicability Transactions covered 13 Cash cards/ prepaid instruments Resident Cash payment aggregating to more than Rs.50,000 in a year issued under Payment & Settlement Act 14 Life insurance premium Resident/n Resident Payment of Rs.50,000/- or more in a year as premium to an insurer 15 Sale or purchase of securities Resident/n Resident Contract for sale/purchase of a value exceeding Rs.1 lakh 16 Shares of unlisted company Resident/n Resident Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction 17 Immovable property Resident/n Resident Sale/ purchase exceeding Rs.10 lakh; or 18 Purchases or sales of any goods or services other than mentioned in SR. 1 to 17 Resident Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh Amount exceeding Rs.2 lakh per transaction.

6 Form. 61A : Statement of financial transactions is required to be furnished by specified persons in respect of specified transactions registered or recorded by them during the financial year. List of such reportable transactions as well as specified persons are given below at Annexure-B Annexure-B List of Transactions for Form. 61A Sr. Class of Persons Nature of transactions Limits 1 A banking company or a cooperative bank 2 A banking company or a cooperative bank or a Post master General Purchase of bank drafts or pay orders or banker s cheque /prepaid instruments Deposits or withdrawals from one or more current account Deposits, in one or more accounts (other than a current account and time deposit) of a person Payment in cash aggregating to Rs. 10 lakhs or more in a financial year Cash aggregating to Rs. 50 lakhs or more in a financial year Cash aggregating to Rs. 10 lakhs or more in a financial year

7 Class of Persons Nature of transactions Limits 3 A banking company or a cooperative bank or a Post master or a Nidhi Company or nbanking financial company 4 A banking company or a cooperative bank or any other company issuing credit card Time deposit (other than a time deposit made through renewal of another time deposit) of a person Payments by a person against bills raised in respect of one or more credit cards Aggregating to Rs. 10 lakhs or more Cash aggregating to Rs. 1 lakh in a financial year or payment by any other mode aggregating to Rs. 10 lakhs in a financial year 5 A company or institution issuing bonds or debentures Receipt from any person for acquiring bonds or debentures issued by the company or institution other than the amount received on account of renewal Aggregating to Rs.10 lakhs or more in a financial year 6 A company issuing shares Receipt from any person for acquiring shares (including share application money) issued by the company Aggregating to Rs. 10 lakhs or more in a financial year

8 Class of Persons Nature of transactions Limits 7 A company listed on a recognized stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013). Buy back of shares from any person Aggregating to Rs. 10 lakhs or more in a financial year 8 A 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. 9 Authorized person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) Receipt from any person for acquiring units of one or more schemes of a Mutual Fund 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 travellers cheque or draft or any other instrument Aggregating to Rs. 10 lakhs or more in a financial year Aggregating to Rs. 10 lakhs or more in a financial year

9 Class of Persons Nature of transactions Limits 10 Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. Purchase or sale by any person of immovable property Rs. 30 lakhs or more 11 Any person who is liable for audit under section 44AB of the Act Receipt of cash payment, by any person, of goods or services of any nature (other than those specified at Sl.. 1 to 10 of this rule Receipt of cash payment of Rs. 2 lakhs or more per transaction 12 A banking company or a Post Master General Cash deposits during the period 09th vember, 2016 to 30th December, 2016 Aggregating to Rs lakhs or more in one or more current account of a person or Aggregating to Rs lakhs or more in one or more accounts (other than a current account) of a person

10 Due dates: Form Period Due date Form. 61 Declarations received till 30 th September 31 st October Declarations received till 31 st March 30 th April Form.61A* Financial Year 31 st May of next financial year * However, due date for filing Form 61A by banking company for cash deposits during the period 09/11/2016 to 30/12/2016) is 31 st day of January, 2017.

11 Contact Us Khandhar Mehta & Shah Chartered Accountants 3rd Floor, Devpath Complex, B/h Lal Bunglow, Off C G Road, Ahmedabad Tel: /52/53