Rule 114E - Furnishing of statement of financial transaction. - Income-tax Rules, 1962

2 [ 114E. Furnishing of statement of financial transaction.- (1) The statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in respect of a financial year in Form No. 61A and shall be verified in the manner indicated therein. (2) The statement referred to in sub-rule (1) shall be furnished by every person mentioned in column (3) of the Table below in respect of all the transactions of the nature and value specified in the corresponding entry in column (2) of the said Table in accordance with the provisions of sub-rule (3), which are registered or recorded by him on or after the 1st day of April, 2016, namely:- TABLE Sl.No. Nature and value of transaction Class of person (reporting person) (1) (2) (3) 1. (a) Payment made in cash for purchase of bank drafts or pay orders or banker s cheque of an amount aggregating to ten lakh rupees or more in a financial year. (b) Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007). (c) Cash deposits or cash withdrawals (including through bearer s cheque) aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). 2. Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). 3. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person. (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); (iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 9 [ (2 of 1934) ] , to hold or accept deposit from public. 4. Payments made by any person of an amount aggregating to- (i) one lakh rupees or more in cash; or (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card. 5. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). A company or institution issuing bonds or debentures. 6. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company. A company issuing shares. 7. Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year. A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013) . 8. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund). A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. 9. 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 of an amount aggregating to ten lakh rupees or more during a financial year. Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999). 10. Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more. Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act . 11. Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. No. 1 to 10 of this rule, if any. Any person who is liable for audit under section 44AB of the Act . 5 [12. Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to - (i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or (ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person. (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).] 7 [13. Cash deposits during the period 1st April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12. (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).] (3) The reporting person mentioned in column (3) of the Table under sub-rule (2) 4 [(other than the persons at Sl.No.10 and Sl. No. 11)] shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person as specified in column (2) of the said Table,- (a) take into account all the accounts of the same nature as specified in column (2) of the said Table maintained in respect of that person during the financial year; (b) aggregate all the transactions of the same nature as specified in column (2) of the said Table recorded in respect of that person during the financial year; (c) attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person; (d) apply the threshold limit separately to deposits and withdrawals in respect of transaction specified in item (c) under column (2), against Sl. No. 1 of the said Table. (4)(a) The return in Form No. 61A referred to in sub-rule (1) shall be furnished to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose under the digital signature of the person specified in sub-rule (7) and in accordance with the data structure specified in this regard by the Principal Director General of Income-tax (Systems): Provided that in case of a reporting person, being a Post Master General or a Registrar or an Inspector General referred to in sub-rule (2), the said return in Form 61A may be furnished in a computer readable media, being a Compact Disc or Digital Video Disc (DVD), alongwith the verification in Form-V on paper. Explanation.-For the purposes of this sub-rule, digital signature means a digital signature issued by any Certifying Authority authorised to issue such certificates by the Controller of Certifying Authorities. (b) Principal Director General of Income-tax (Systems) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies. (c) The Board may designate an officer as Information Statement Administrator, not below the rank of a Joint Director of Income-tax for the purposes of day to day administration in relation to the furnishing of returns or statements. (5) The statement of financial transactions referred to in sub-rule (1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded. 6 [ Provided the statement of financial transaction in respect of the transactions listed at serial number (12) 8 [and serial number (13)] in the Table under sub-rule (2), shall be furnished on or before the 31st day of January, 2017.] 10 [ (5A) For the purposes of pre-filling the return of income, a statement of financial transaction under sub-section (1) of section 285BA of the Act containing information relating to capital gains on transfer of listed securities or units of Mutual Funds, dividend income, and interest income mentioned in column (2) of Table below shall be furnished by the persons mentioned in column (3) of the said Table in such form, at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the Board, namely:- TABLE Sl.No. Nature of transaction Class of person (reporting person) (1) (2) (3) 1. Capital gains on transfer of listed securities or units of Mutual Funds (i) Recognised Stock Exchange; (ii) depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996) ; (iii) Recognised Clearing Corporation; (iv) Registrar to an issue and share transfer agent registered under sub-section (1) section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) . 2. Dividend income A company 3. Interest income (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). (iii) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. Explanation . - For the purposes of this rule,- (a) listed securities means the securities which are listed on any recognised stock exchange in India; (b) Mutual Fund means a Mutual Fund as referred to in clause (23D) of section 10 of the Act; (c) recognised clearing corporation shall have the same meaning as assigned to it in clause (o) of sub-regulation (1) of regulation 2 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 made under the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992) ; (d) recognised stock exchange shall have the same meaning as assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) ; (e) securities shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) ; ] (6) (a) Every reporting person mentioned in column (3) of the Table under sub-rule (2) 11 [ and column (3) of the Table under sub-rule (5A) ] shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of the Designated Director and the Principal Officer and obtain a registration number. (b) It shall be the duty of every person specified in column (3) of the Table under sub-rule (2) 12 [ and column (3) of the Table under sub-rule (5A) ] , its Designated Director, Principal Officer and employees to observe the procedure and the manner of maintaining information as specified by its regulator and ensure compliance with the obligations imposed under section 285BA of the Act and rules 114B to 114D and this rule. Explanation 1.- Designated Director means a person designated by the reporting person to ensure overall compliance with the obligations imposed under section 285BA of the Act and the rules 114B to 114D and this rule and includes- (i) the Managing Director or a whole-time Director, as defined in the Companies Act, 2013 (18 of 2013) , duly authorised by the Board of Directors if the reporting person is a company; (ii) the managing partner if the reporting person is a partnership firm; (iii) the proprietor if the reporting person is a proprietorship concern; (iv) the managing trustee if the reporting person is a trust; (v) a person or individual, as the case may be, who controls and manages the affairs of the reporting entity if the reporting person is, an unincorporated association or, a body of individuals or, any other person. Explanation 2.- Principal Officer means an officer designated by the reporting person referred to in the Table in sub-rule (2) 13 [ and in sub-rule (5A) ] . Explanation 3.- Regulator means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of the reporting person referred to in the Table in sub-rule (2) 14 [ and in sub-rule (5A) ] . (7) The statement of financial transaction referred to in sub-rule (1) 15 [ and sub-rule (5A) ] shall be signed, verified and furnished by the Designated Director specified in sub-rule (6): Provided that where the reporting person is a non-resident, the statement may be signed, verified and furnished by a person who holds a valid power of attorney from such Designated Director] ******************* Notes: 1. Substituted vide notification no. 111/2008 dated 23-12-2008 (Income-tax (Eleventh Amendment) Rules, 2008), before it was read as, Commissioner of Income-tax (Central Information Branch) 2. Substituted vide Not. 95/2015 - Dated 30-12-2015, w.e.f. 1st day of April, 2016, before it was read as, 114E. Furnishing of Annual Information Return 1 [or Statement of Financial Transactions ] (1) The 2 [annual information return or statement of financial transactions, as the case may be,] required to be furnished under sub-section (1) of section 285BA shall be furnished in Form No. 61A and shall be verified in the manner indicated therein. (2) The 7 [return or statement ] referred to in sub-rule (1) shall be furnished by every person mentioned in column (2) of the Table below in respect of all transactions of the nature and value specified in the corresponding entry in column (3) of the said Table, which are registered or recorded by him during a financial year beginning on or after the 1st day of April, 2004: Table Sl. No. Class of person Nature and value of transaction (1) (2) (3) 1 A Banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution refer- red to in section 51 of that Act). Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank. 2. A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card. Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year. 3. A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund. 4. A company or institution issuing bonds or debentures. Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the company or institution. 5. A company issuing shares through a public or rights issue. Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the company. 6. Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908. Purchase or sale by any person of immovable property valued at thirty lakh rupees or more. 7. A person being an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934, who is duly authorized by the Reserve Bank of India in this behalf. Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India. (3) The 7 [return or statement ] referred to in sub-rule (1) shall be furnished to the 1 [Director of Income-tax (Central Information Branch)]: Provided that where the Board has authorised an agency to receive such 7 [return or statement ] on behalf of the 1 [Director of Income-tax (Central Information Branch)], 7 [return or statement ] shall be furnished to that agency. (4)(a) The 3 [return or statement ] comprising Part A and Part B of Form No. 61A referred to in sub-rule (1) shall be furnished on computer readable media being a floppy (3.5 inch and 1.44 MB capacity) or CD-ROM (650 MB or higher capacity) or Digital Video Disc (DVD), along with Part-A thereof on paper. Provided that a person responsible for furnishing the 3 [return or statement] , may, at his option, furnish the 3 [return or statement] through online transmission of electronic data to a server designated by the 4 [ Annual Information Return or Statement of Financial Transaction- Administrator ] referred to in sub-rule (7) for this purpose under the digital signature of the person specified in sub-rule 6: Provided further that the 3 [return or statement] shall be prepared in accordance with the data structure specified by the 4 [ Annual Information Return or Statement of Financial Transaction- Administrator ] referred to in sub-rule (7) in this regard; (b) The person responsible for furnishing the 5 [ return or the statement ] shall ensure that (i) if the data relating to the return or statement is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the computer media return or statement; (ii) the 5 [ return or the statement ] is accompanied with a certificate regarding clean and virus free data. Explanation. For the purposes of this sub-rule, digital signature means a digital signature issued by any Certifying Authority authorised to issue such certificates by the Controller of Certifying Authorities. (5) The 7 [return or statement ] referred to in sub-rule (1) shall be furnished on or before 31st August, immediately following the financial year in which the transaction is registered or recorded. (6) The 7 [return or statement ] referred to in sub-rule (1) shall be signed and verified by- (a) in a case where the person furnishing the 7 [return or statement ] is an assessee as defined in clause (7) of section 2 of the Act, by a person specified in section 140 of the Act; (b) in any other case, by the person referred to in column (2) of the Table below sub-rule (2). (7) The Board may appoint an officer designated as 6 [ Annual Information Return or Statement of Financial Transaction ]-Administrator, not below the rank of the Commissioner of Income-tax for the purposes of day to day administration of furnishing of the 7 [ Annual Information Return or Statement] including specification of the procedures, data structure, formats and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies. Sub-Notes:- 1. Inserted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 2. Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, annual information return 3, Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, return 4. Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, Annual Information Return-Administrator 5, Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, return 6. Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, Annual Information Return 7. Substituted vide Not.19/2016 - Dated 18-3-2016 w.e.f. 1st day of April, 2015 , before it was read as, return 4. Substituted vide Not. 91/2016 - Dated 6-10-2016 , before it was read as, (other than the person at Sl. No. 9) 5. Inserted vide Not. 104/2016 - Dated 15-11-2016 , 6. Inserted vide Not. 104/2016 - Dated 15-11-2016 , 7. Inserted vide Not. 2/2017 - Dated 6-1-2017 8. Inserted vide Not. 2/2017 - Dated 6-1-2017 9. Substituted vide Notification No. G.S.R 175(E) dated 12-03-2021 before it was read as (6 of 1934) 10. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021 11. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021 12. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021 13. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021 14. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021 15. Inserted vide Notification No. G.S.R 175(E) dated 12-03-2021