CBDT goes after key transaction info

CBDT goes after key transaction info

The Central Board of Direct Taxes (CBDT) has asked self-reporting organisations (SROs) including banks, post offices, co-operatives, fintechs and mutual fund houses to file details of all high-value transactions carried out in 2022-23 by June 30.

There are about 6,000 reporting entities that have either not filed the information or provided incomplete information or given it in incorrect format, ET has learnt.

The CBDT has nudged its field formations to ensure that each reporting entity is compliant.

“There are about 6,000 entities which are non-filers or defect-filers, meaning that the details furnished are incomplete,” a senior official told ET, adding that the field formations need to ensure that all the reporting entities are complying with the law and are filling all the details for FY23 before June 30.

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According to the income tax rules, all reporting authorities including banks, post offices, registrars, companies and mutual fund houses are required to intimate the director of income tax (intelligence and criminal investigation) about high-value transactions through Form 61A, called Statement of Financial Transaction, under Section 285BA of the Income Tax Act, 1961 read with Rule 114E of the income tax rules, 1962.

Any transaction above ₹50 lakh, share purchase and sale above ₹10 lakh and post office deposits and withdrawal of ₹5 lakh and above has to be reported. Officials said while all large banks and mutual fund houses are compliant, regional banks, post offices and regional registry offices are sometimes not filling on time. This is a significant source of information on high-value transactions for the investigation wing of the department.

The department conducts regular surveys to check if reporting authorities are in compliance.

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