The Income Tax Department on Friday said that entities/people who have received cash above Rs 2 lakh in 2016-17 fiscal for sale of goods and services need to file Statement of Financial Transaction (SFT) in Form 61A by May 31.
SFT includes reporting of cash receipts exceeding Rs 2 lakh for sale of goods/services by reportable persons that includes banks, companies issuing shares/bonds/debentures/ mutual fund, registrar/sub-registrar of property or any other person liable for audit under section 44AB of the Income Tax Act.
It is mandatory to file Form 61A for statement of financial transaction (SFT) by reportable person.
The Income Tax Department's clarification has made it clear that it is not compulsory to file Form 61A for receipts below Rs 2 lakh cash for the sale of goods and services.
"Post Income Tax Department's clarification, the confusion in the minds of assesses whether it was compulsory to file Form 61A even in case of non-reportable transactions now stands addressed," Amit Jindal, Director, Felix Advisory, told IANS.
"It has now been clarified that there is no need to file form 61A where there is no reportable transaction and thereby, avoiding any future queries from tax department regarding non-disclosure/ non filing," he said.
The reporting person/entity is required to register with the Income Tax Department and generate Income Tax Department Reporting Entity Identification Number (ITDREIN).
The Income Tax Department clarified that ITDREIN is mandatory only when at least one of the transaction type is reportable. Also, a functionality "SFT Preliminary Response" has been provided on the e-filing portal for the reporting persons to indicate that a specified transaction type is not reportable for the year.
--IANS
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