The Central Board of Direct Taxes ( CBDT ) has directed Self-Reporting Organizations ( SROs ) including post offices, bank..etc to submit comprehensive details of high-value transactions conducted during the fiscal year 2022-23 by June 30th. This could help the department to notice the tax evasions or illicit activities.
Self-Reporting Organizations ( SROs ) represent entities entrusted by regulatory bodies to proactively disclose specific transactional data or activities to pertinent government agencies. It includes a wide range of entities such as banks, financial institutions, cooperatives, post offices, mutual fund houses, fintech firms, and other entities involved in financial transactions.
The transactions exceeding Rs.50 lakh, share transactions above Rs. 10 lakh, and post office deposits or withdrawals exceeding Rs. 5 lakh are subject to reporting requirements.
Approximately 6,000 reporting entities have either failed to submit the requisite information, provided incomplete details, or submitted information in an incorrect format, reported the Economic Times.
A senior official has informed that every reporting entity adheres to the regulatory requirements and submits all relevant details for the fiscal year 2022-23 by the specified deadline.
To monitor transactions conducted by taxpayers, the Income Tax Act has introduced a new provision: the requirement to submit a Statement of Financial Transactions, previously referred to as the Annual Information Return ( AIR ).
Under Section 285BA of the Income Tax Act, certain designated entities are mandated to provide this statement. Furthermore, Rule 114E of the Income Tax Rules 1962 specifies that this statement should be submitted using Form No. 61A.
Who is required to furnish Form 61A
A banking company, Cooperative bank, NBFC, any institution issuing credit card, post offices, mutual fund companies, companies listed on stock exchange..etc.
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