A notice says my client should have filed Form 61A and proposes a penalty of five hundred rupees a day. Who actually has to file, for what transactions, and how is the penalty computed?
The statement of financial transactions is furnished under section 285BA(1) in Form No. 61A, and rule 114E(2) fixes both the reporting persons and the transactions in a table: for most reporters the threshold is ten lakh rupees in a financial year, for immovable property registered by a Registrar or Sub-Registrar it is thirty lakh rupees, and for a person liable to audit under section 44AB it is receipt of cash exceeding two lakh rupees for a sale of goods or services. The due date under rule 114E(5) is 31 May following the financial year. The penalty under section 271FA is five hundred rupees for every day of default, rising to one thousand rupees a day from the day after the time given in a notice under section 285BA(5) expires; section 271FAA adds fifty thousand rupees for an inaccurate statement, and, for a reporting financial institution, a further five thousand rupees for every inaccurate reportable account.
Decided by the CBDT Circulars & Instructions (Not applicable — statutory text) on 2023-04-01, reported as Income-tax Act 1961, ss.285BA, 271FA and 271FAA; Income-tax Rules 1962, rule 114E and Form No. 61A; s.271FAA(2) inserted by the Finance Act 2023 w.e.f. 1 April 2023; the words 'clause (k) of' omitted from s.271FAA by Act No. 23 of 2019 w.e.f. 1 September 2019. It bears on section 285BA, section 285BA(4), section 285BA(5), section 285BA(6), section 285BA(7), section 271FA, section 271FAA, section 273B, section 44AB, section 50C of the Income Tax Act 1961, in Penalty, Cash Transaction Limits, Evidence & Burden of Proof and How Tax Law Is Read matters.
The commonest mistake in this area is to assume the obligation attaches to a class of institution. It does not: rule 114E(2) attaches it to a TRANSACTION recorded by a named class of person, and Sl. No. 11 of that table catches 'any person who is liable for audit under section 44AB' who receives cash exceeding two lakh rupees for a sale of goods or services of any nature. An ordinary trading company with a tax audit is therefore a reporting person, and its Form 61A obligation is easy to miss until the notice arrives. Two more traps. First, the penalty structure is two-tier and the second tier is the expensive one: section 271FA charges five hundred rupees a day for the original default and one thousand rupees a day only 'beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires', so a reporting person served with a section 285BA(5) notice who continues to do nothing doubles his exposure from that point. Answering the notice within the period it allows is worth more than any argument. Second, section 285BA(4) has a sting: if the prescribed authority intimates that a statement is defective and the defect is not rectified within thirty days or such further period as is allowed, then 'notwithstanding anything contained in any other provision of this Act, the provisions of this Act shall apply as if such person had furnished inaccurate information in the statement' — which is the gateway to section 271FAA. A defective statement left unrectified is deemed to be an inaccurate one. Note also that section 285BA(6) requires a reporting person who discovers an inaccuracy to inform the authority within ten days, and that failing to do so is itself a limb of section 271FAA(1)(c). Section 273B is not part of section 285BA but it does cover section 271FA and section 271FAA, so reasonable cause remains available; that is where these appeals are usually won.
Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them.
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Section 285BA(1) obliges the persons it lists — an assessee; the prescribed person in the case of an office of Government; a local authority or other public body or association; a Registrar or Sub-Registrar under section 6 of the Registration Act 1908; the registering authority for motor vehicles; the Post Master General; the Collector under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013; a recognised stock exchange; an officer of the Reserve Bank of India; a depository; a prescribed reporting financial institution; and any other prescribed person — who is responsible for registering or maintaining books of account or other document containing a record of a prescribed specified financial transaction or reportable account, to furnish a statement of it. Sub-section (2) leaves the period, time, form and manner to be prescribed. Sub-section (3) defines 'specified financial transaction' as a transaction of purchase, sale or exchange of goods, property, right or interest in property; for rendering a service; under a works contract; by way of an investment made or expenditure incurred; or for taking or accepting a loan or deposit, as may be prescribed, with a proviso allowing the Board to prescribe different values for different transactions and different persons. Sub-section (4) allows the prescribed authority to intimate a defect and give thirty days, or such further period as he may allow on application, to rectify it, and provides that if the defect is not rectified the provisions of the Act shall apply as if the person had furnished inaccurate information. Sub-section (5) allows the authority to serve a notice requiring the statement within a period not exceeding thirty days. Sub-section (6) requires a person who discovers an inaccuracy to inform the authority within ten days and furnish the correct information. Sub-section (7) allows rules for registration of reporting persons, the nature and manner of maintaining information, and the due diligence for identifying a reportable account. Rule 114E(1) prescribes Form No. 61A. Rule 114E(2) sets out the table of reporting persons and transactions: banks and co-operative banks for cash purchases of drafts, pay orders or bankers' cheques of ten lakh rupees or more, cash payments of ten lakh rupees or more for pre-paid instruments, and cash deposits or withdrawals of fifty lakh rupees or more in current accounts; banks and the Post Master General for cash deposits of ten lakh rupees or more in non-current, non-time-deposit accounts; banks, the Post Master General, a Nidhi and a registered non-banking financial company for time deposits aggregating ten lakh rupees or more; card issuers for payments of one lakh rupees or more in cash, or ten lakh rupees or more by any other mode, against credit card bills; issuers of bonds or debentures, companies issuing shares, listed companies buying back shares, mutual funds and authorised persons under the Foreign Exchange Management Act for receipts of ten lakh rupees or more; the Inspector-General or Registrar or Sub-Registrar for purchase or sale of immovable property of thirty lakh rupees or more or so valued by the stamp valuation authority under section 50C; and any person liable to audit under section 44AB for receipt of cash exceeding two lakh rupees for sale of goods or services of any nature not already covered. Rule 114E(3) governs aggregation, rule 114E(4) the electronic furnishing to the Director or Joint Director of Income-tax (Intelligence and Criminal Investigation) under digital signature, rule 114E(5) the 31 May due date, rule 114E(5A) the separate pre-filling statement of capital gains on listed securities and mutual fund units, dividend income and interest income, and rules 114E(6) and (7) the registration of the Designated Director and Principal Officer and the signing of the statement. Section 271FA imposes a penalty of five hundred rupees for every day during which the failure to furnish the statement within the prescribed time continues, and by its proviso one thousand rupees for every day during which the failure continues beginning from the day immediately following the day on which the time specified in a notice under section 285BA(5) expires. Section 271FAA(1) imposes fifty thousand rupees where a person required to furnish a statement provides inaccurate information and the inaccuracy is due to a failure of the prescribed due diligence or is deliberate, or the person knew of it when furnishing and did not inform the authority, or discovered it afterwards and failed to inform and correct within the section 285BA(6) time. Section 271FAA(2) directs that a reporting financial institution within clause (k) whose statement is inaccurate because of false or inaccurate information furnished by the reportable account holder shall pay, in addition, five thousand rupees for every inaccurate reportable account, and shall be entitled to recover that sum from the account holder or retain it out of moneys in its possession or coming to it from that holder.
Statutory position — no holding is asserted; this entry reproduces statutory and subordinate legislative text. The obligation to file Form No. 61A is fixed transaction by transaction by the table in rule 114E(2) and not by the character of the filer; the due date is 31 May following the financial year; the daily penalty under section 271FA is five hundred rupees, doubling to one thousand rupees only from the day after the period in a section 285BA(5) notice expires; an unrectified defect intimated under section 285BA(4) is deemed to be inaccurate information; and section 271FAA charges fifty thousand rupees for an inaccurate statement, with an additional five thousand rupees per inaccurate reportable account, recoverable from the account holder, where the filer is a reporting financial institution.
The scheme is worth reading in sequence because the penalties key off particular sub-sections rather than off the general obligation. Section 285BA(1) creates the duty and section 285BA(2) leaves its content to the rules, so nothing about who must file or by when is found in the section; it is all in rule 114E. Section 271FA is drafted by reference to sub-section (1) for the duty, sub-section (2) for the time, and sub-section (5) for the notice that raises the rate — so the escalation is triggered by a document, and the date on that document is what governs. Section 285BA(4) is the bridge between non-filing and mis-filing: it converts an unrectified defect into a deemed inaccuracy by a non-obstante clause, and section 271FAA then charges that inaccuracy. Section 271FAA(1) itself is drafted around knowledge and conduct — due diligence failure or deliberate inaccuracy, knowledge at the time of filing, or discovery afterwards without correction within the section 285BA(6) ten-day period — so it is not a strict-liability charge in the way section 271FA is. The words 'clause (k) of' were omitted from section 271FAA(1) with effect from 1 September 2019, which is what moved that penalty out of the reporting-financial-institution world and on to every person who files under section 285BA(1); the Finance Act 2023 then put a reporting-financial-institution charge back in as a separate sub-section (2), with its own quantum and its own right of recovery against the account holder. Both sections are within the reach of section 273B, so reasonable cause is a defence to each.
271FA. If a person who is required to furnish a statement of financial transaction or reportable account under sub-section (1) of section 285BA, fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under said sub-section (1) may direct that such person shall pay, by way of penalty, a sum of five hundred rupees for every day during which such failure continues: Provided that where such person fails to furnish the statement within the period specified in the notice issued under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of one thousand rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.
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Handle my notice → Ask a CA on WhatsAppThe statement of financial transactions is furnished under section 285BA(1) in Form No. 61A, and rule 114E(2) fixes both the reporting persons and the transactions in a table: for most reporters the threshold is ten lakh rupees in a financial year, for immovable property registered by a Registrar or Sub-Registrar it is thirty lakh rupees, and for a person liable to audit under section 44AB it is receipt of cash exceeding two lakh rupees for a sale of goods or services. The due date under rule 114E(5) is 31 May following the financial year. The penalty under section 271FA is five hundred rupees for every day of default, rising to one thousand rupees a day from the day after the time given in a notice under section 285BA(5) expires; section 271FAA adds fifty thousand rupees for an inaccurate statement, and, for a reporting financial institution, a further five thousand rupees for every inaccurate reportable account. This was decided by the CBDT Circulars & Instructions (Not applicable — statutory text) and bears on section 285BA, section 285BA(4), section 285BA(5), section 285BA(6), section 285BA(7), section 271FA, section 271FAA, section 273B, section 44AB, section 50C of the Income Tax Act 1961. It is reported as Income-tax Act 1961, ss.285BA, 271FA and 271FAA; Income-tax Rules 1962, rule 114E and Form No. 61A; s.271FAA(2) inserted by the Finance Act 2023 w.e.f. 1 April 2023; the words 'clause (k) of' omitted from s.271FAA by Act No. 23 of 2019 w.e.f. 1 September 2019. The commonest mistake in this area is to assume the obligation attaches to a class of institution. It does not: rule 114E(2) attaches it to a TRANSACTION recorded by a named class of person, and Sl. No. 11 of that table catches 'any person who is liable for audit under section 44AB' who receives cash exceeding two lakh rupees for a sale of goods or services of any nature. An ordinary trading company with a tax audit is therefore a reporting person, and its Form 61A obligation is easy to miss until the notice arrives. Two more traps. First, the penalty structure is two-tier and the second tier is the expensive one: section 271FA charges five hundred rupees a day for the original default and one thousand rupees a day only 'beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires', so a reporting person served with a section 285BA(5) notice who continues to do nothing doubles his exposure from that point. Answering the notice within the period it allows is worth more than any argument. Second, section 285BA(4) has a sting: if the prescribed authority intimates that a statement is defective and the defect is not rectified within thirty days or such further period as is allowed, then 'notwithstanding anything contained in any other provision of this Act, the provisions of this Act shall apply as if such person had furnished inaccurate information in the statement' — which is the gateway to section 271FAA. A defective statement left unrectified is deemed to be an inaccurate one. Note also that section 285BA(6) requires a reporting person who discovers an inaccuracy to inform the authority within ten days, and that failing to do so is itself a limb of section 271FAA(1)(c). Section 273B is not part of section 285BA but it does cover section 271FA and section 271FAA, so reasonable cause remains available; that is where these appeals are usually won. If it applies to you, the first step is this: Start by testing the transaction against rule 114E(2) row by row rather than asking whether your client is 'a reporting institution' — Sl. No. 11 catches any person liable to audit under section 44AB who receives cash exceeding two lakh rupees against a sale of goods or services.
Section 285BA(1) obliges the persons it lists — an assessee; the prescribed person in the case of an office of Government; a local authority or other public body or association; a Registrar or Sub-Registrar under section 6 of the Registration Act 1908; the registering authority for motor vehicles; the Post Master General; the Collector under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013; a recognised stock exchange; an officer of the Reserve Bank of India; a depository; a prescribed reporting financial institution; and any other prescribed person — who is responsible for registering or maintaining books of account or other document containing a record of a prescribed specified financial transaction or reportable account, to furnish a statement of it. Sub-section (2) leaves the period, time, form and manner to be prescribed. Sub-section (3) defines 'specified financial transaction' as a transaction of purchase, sale or exchange of goods, property, right or interest in property; for rendering a service; under a works contract; by way of an investment made or expenditure incurred; or for taking or accepting a loan or deposit, as may be prescribed, with a proviso allowing the Board to prescribe different values for different transactions and different persons. Sub-section (4) allows the prescribed authority to intimate a defect and give thirty days, or such further period as he may allow on application, to rectify it, and provides that if the defect is not rectified the provisions of the Act shall apply as if the person had furnished inaccurate information. Sub-section (5) allows the authority to serve a notice requiring the statement within a period not exceeding thirty days. Sub-section (6) requires a person who discovers an inaccuracy to inform the authority within ten days and furnish the correct information. Sub-section (7) allows rules for registration of reporting persons, the nature and manner of maintaining information, and the due diligence for identifying a reportable account. Rule 114E(1) prescribes Form No. 61A. Rule 114E(2) sets out the table of reporting persons and transactions: banks and co-operative banks for cash purchases of drafts, pay orders or bankers' cheques of ten lakh rupees or more, cash payments of ten lakh rupees or more for pre-paid instruments, and cash deposits or withdrawals of fifty lakh rupees or more in current accounts; banks and the Post Master General for cash deposits of ten lakh rupees or more in non-current, non-time-deposit accounts; banks, the Post Master General, a Nidhi and a registered non-banking financial company for time deposits aggregating ten lakh rupees or more; card issuers for payments of one lakh rupees or more in cash, or ten lakh rupees or more by any other mode, against credit card bills; issuers of bonds or debentures, companies issuing shares, listed companies buying back shares, mutual funds and authorised persons under the Foreign Exchange Management Act for receipts of ten lakh rupees or more; the Inspector-General or Registrar or Sub-Registrar for purchase or sale of immovable property of thirty lakh rupees or more or so valued by the stamp valuation authority under section 50C; and any person liable to audit under section 44AB for receipt of cash exceeding two lakh rupees for sale of goods or services of any nature not already covered. Rule 114E(3) governs aggregation, rule 114E(4) the electronic furnishing to the Director or Joint Director of Income-tax (Intelligence and Criminal Investigation) under digital signature, rule 114E(5) the 31 May due date, rule 114E(5A) the separate pre-filling statement of capital gains on listed securities and mutual fund units, dividend income and interest income, and rules 114E(6) and (7) the registration of the Designated Director and Principal Officer and the signing of the statement. Section 271FA imposes a penalty of five hundred rupees for every day during which the failure to furnish the statement within the prescribed time continues, and by its proviso one thousand rupees for every day during which the failure continues beginning from the day immediately following the day on which the time specified in a notice under section 285BA(5) expires. Section 271FAA(1) imposes fifty thousand rupees where a person required to furnish a statement provides inaccurate information and the inaccuracy is due to a failure of the prescribed due diligence or is deliberate, or the person knew of it when furnishing and did not inform the authority, or discovered it afterwards and failed to inform and correct within the section 285BA(6) time. Section 271FAA(2) directs that a reporting financial institution within clause (k) whose statement is inaccurate because of false or inaccurate information furnished by the reportable account holder shall pay, in addition, five thousand rupees for every inaccurate reportable account, and shall be entitled to recover that sum from the account holder or retain it out of moneys in its possession or coming to it from that holder. The matter was decided on 2023-04-01 by the CBDT Circulars & Instructions (Not applicable — statutory text). On those facts the CBDT Circulars & Instructions held as follows. Statutory position — no holding is asserted; this entry reproduces statutory and subordinate legislative text. The obligation to file Form No. 61A is fixed transaction by transaction by the table in rule 114E(2) and not by the character of the filer; the due date is 31 May following the financial year; the daily penalty under section 271FA is five hundred rupees, doubling to one thousand rupees only from the day after the period in a section 285BA(5) notice expires; an unrectified defect intimated under section 285BA(4) is deemed to be inaccurate information; and section 271FAA charges fifty thousand rupees for an inaccurate statement, with an additional five thousand rupees per inaccurate reportable account, recoverable from the account holder, where the filer is a reporting financial institution.
The scheme is worth reading in sequence because the penalties key off particular sub-sections rather than off the general obligation. Section 285BA(1) creates the duty and section 285BA(2) leaves its content to the rules, so nothing about who must file or by when is found in the section; it is all in rule 114E. Section 271FA is drafted by reference to sub-section (1) for the duty, sub-section (2) for the time, and sub-section (5) for the notice that raises the rate — so the escalation is triggered by a document, and the date on that document is what governs. Section 285BA(4) is the bridge between non-filing and mis-filing: it converts an unrectified defect into a deemed inaccuracy by a non-obstante clause, and section 271FAA then charges that inaccuracy. Section 271FAA(1) itself is drafted around knowledge and conduct — due diligence failure or deliberate inaccuracy, knowledge at the time of filing, or discovery afterwards without correction within the section 285BA(6) ten-day period — so it is not a strict-liability charge in the way section 271FA is. The words 'clause (k) of' were omitted from section 271FAA(1) with effect from 1 September 2019, which is what moved that penalty out of the reporting-financial-institution world and on to every person who files under section 285BA(1); the Finance Act 2023 then put a reporting-financial-institution charge back in as a separate sub-section (2), with its own quantum and its own right of recovery against the account holder. Both sections are within the reach of section 273B, so reasonable cause is a defence to each. In the words reproduced by the source cited on this page: "271FA. If a person who is required to furnish a statement of financial transaction or reportable account under sub-section (1) of section 285BA, fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under said sub-section (1) may direct that such person shall pay, by way of penalty, a sum of five hundred rupees for every day during which such failure continues: Provided that where such person fails to furnish the statement within the period specified in the notice issued under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of one thousand rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires."
It was decided by the CBDT Circulars & Instructions on 2023-04-01 and is reported as Income-tax Act 1961, ss.285BA, 271FA and 271FAA; Income-tax Rules 1962, rule 114E and Form No. 61A; s.271FAA(2) inserted by the Finance Act 2023 w.e.f. 1 April 2023; the words 'clause (k) of' omitted from s.271FAA by Act No. 23 of 2019 w.e.f. 1 September 2019. Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them. A CBDT circular or instruction binds officers of the department but not the assessee and not the courts. Where a circular helps you, you may hold the department to it. Where it hurts you, it cannot override the Act or a judgment. On section 285BA, section 285BA(4), section 285BA(5), section 285BA(6), section 285BA(7), section 271FA, section 271FAA, section 273B, section 44AB, section 50C, the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It cuts both ways and is cited by both sides. Statutory position — no holding is asserted; this entry reproduces statutory and subordinate legislative text. The obligation to file Form No. 61A is fixed transaction by transaction by the table in rule 114E(2) and not by the character of the filer; the due date is 31 May following the financial year; the daily penalty under section 271FA is five hundred rupees, doubling to one thousand rupees only from the day after the period in a section 285BA(5) notice expires; an unrectified defect intimated under section 285BA(4) is deemed to be inaccurate information; and section 271FAA charges fifty thousand rupees for an inaccurate statement, with an additional five thousand rupees per inaccurate reportable account, recoverable from the account holder, where the filer is a reporting financial institution. It arises in Penalty, Cash Transaction Limits, Evidence & Burden of Proof and How Tax Law Is Read matters, on section 285BA, section 285BA(4), section 285BA(5), section 285BA(6), section 285BA(7), section 271FA, section 271FAA, section 273B, section 44AB, section 50C of the Income Tax Act 1961, and was decided by Not applicable — statutory text. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. Diarise 31 May following the financial year for Form 61A under rule 114E(5), and register the Designated Director and Principal Officer with the Principal Director General of Income-tax (Systems) and obtain the registration number, which rule 114E(6)(a) separately requires. Treat a notice under section 285BA(5) as the single most important document in the file: comply within the period it specifies, because the daily penalty doubles from five hundred to one thousand rupees only from the day after that period expires. If an intimation of defect under section 285BA(4) arrives, rectify within thirty days or apply in writing for further time; an unrectified defect is DEEMED to be inaccurate information and opens section 271FAA. Where an inaccuracy is discovered after filing, inform the authority and furnish the correct information within ten days under section 285BA(6) — doing so removes the clause (c) limb of section 271FAA(1). For a reporting financial institution under clause (k), remember the separate charge in section 271FAA(2) of five thousand rupees for every inaccurate reportable account where the inaccuracy is due to false or inaccurate information given by the account holder, and note that the same sub-section entitles the institution to recover that sum from the account holder or retain it out of moneys in its hands. Plead section 273B reasonable cause squarely, with evidence of the portal failure, the registration difficulty or the bona fide ignorance relied on; it is the ground on which these penalties are actually deleted.
Still good law. This is the statute and the rule, not a decision about them. Section 285BA was read from a departmental page carrying a current 'Year: 2026' stamp. Section 271FA in its current five hundred / one thousand rupee form was read from three departmental pages stamped Year 2020, Year 2022 and Year 2024 (No. 2), all identical; none of them printed a footnote list, so the amending Act and the date of the increase from one hundred / five hundred rupees could not be established on this pass and are not stated. Section 271FAA in its current two-sub-section form was read from a page stamped Year 2024 (No. 1) carrying footnotes attributing sub-section (2) to the Finance Act 2023 with effect from 1 April 2023. Rule 114E carries no year stamp, as no departmental rule page does, so its currency rests on it being the page the department serves for that rule and not on any date printed on it. No source could be cited for that finding. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
This is a statutory entry, not a decided case. The 'tier' value 'cbdt' is used because the library's fixed tier vocabulary has no value for a statutory entry; 'bench' reads 'Not applicable — statutory text' and 'favours' is null. The date in 'decided_on', 1 April 2023, is the COMMENCEMENT DATE of the latest amendment stated here — the insertion of section 271FAA(2) by the Finance Act 2023, recorded in footnotes [53] and [54] on the departmental page — and is not a decision date. Sourcing. Section 285BA was read in full from https://www.incometaxindia.gov.in/w/section-285ba, which prints the Act name 'Income-tax Act, 1961', the heading 'Obligation to furnish statement of financial transaction or reportable account' and the stamp 'Year: 2026' — the most recent stamp found for any section in this batch. Section 271FA was read from three departmental pages stamped Year 2020, Year 2022 and Year 2024 (No. 2), all printing the same five hundred / one thousand rupee figures; the older pages stamped Year 2009 to Year 2014 print the superseded one hundred / five hundred figures and were not used to state the current position. The Act that substituted the current figures could not be identified and is not stated: none of the three current-figure pages printed a footnote list, the Year 2020 page ending at the department's copyright line. A verification pass found that the archived Year 2014 page, https://www.incometaxindia.gov.in/w/section-271fa-10, carries at its foot '© Copyright. Taxmann Publications Pvt. Ltd.' and not the Income Tax Department's copyright line, and that its footnotes 41 to 41c are in Taxmann's editorial annotation form; that page is therefore recorded here only as a probe and NOTHING in this entry rests on it. What it appears to record — a substitution by the Finance Act 2013 with effect from 1 April 2014, and the Finance (No. 2) Act 2014 change of terminology from 'annual information return' to 'statement of financial transaction or reportable account' with effect from 1 April 2015 — is set out for a later pass to verify from a departmental or Gazette source, and is not asserted. Section 271FAA was read from four pages stamped Year 2014, Year 2016, Year 2021 and Year 2024 (No. 1); the Year 2021 page carries footnote 5, 'Words "clause (k) of" Omitted by the Act. No. 23 of 2019, w.e.f. 1-9-2019', which is what widened sub-section (1) from reporting financial institutions to every person referred to in section 285BA(1), and the Year 2024 (No. 1) page carries footnotes [53] and [54], both 'by the Finance Act, 2023, w.e.f. 1-4-2023', for the insertion of sub-section (2) and the consequential re-wording. One transcription oddity: the Year 2024 (No. 1) page prints the opening words as '271FAA. If a person referred to in sub-section (1) of section 285BA...' without a visible '(1)' label, although the footnotes and the presence of sub-section (2) show that the opening words are sub-section (1). Rule 114E was read in full from https://www.incometaxindia.gov.in/w/rule-114e; departmental RULE pages carry no 'Year:' stamp and this one printed none, so the rule is not dated here and I do not claim to have dated it. Sl. Nos. 12 and 13 of the rule 114E table are spent — they concern cash deposits in the demonetisation window of 9 November to 30 December 2016 — and are reproduced in the rule only historically. Form No. 61A itself was not opened on this pass; what is said about it is what rule 114E(1) says. No indiankanoon bare-act page was used for any part of this entry. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
Statutory position — no holding is asserted; this entry reproduces statutory and subordinate legislative text. The obligation to file Form No. 61A is fixed transaction by transaction by the table in rule 114E(2) and not by the character of the filer; the due date is 31 May following the financial year; the daily penalty under section 271FA is five hundred rupees, doubling to one thousand rupees only from the day after the period in a section 285BA(5) notice expires; an unrectified defect intimated under section 285BA(4) is deemed to be inaccurate information; and section 271FAA charges fifty thousand rupees for an inaccurate statement, with an additional five thousand rupees per inaccurate reportable account, recoverable from the account holder, where the filer is a reporting financial institution.
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