LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Person not made cash sale of Rs 2 lac has to submit 61A?

Ashim kr Ray (social service) (1685 Points)

19 May 2017

Sir, A person received mail regarding SFT ,but he has not made any cash sale of Rs 2lak or above. whether he has to submit 61A for the same.

Reply
Follow
Share

89 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 19 May 2017

Statement of ‘high value financial transactions‘ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons‘ in respect of ‘specified transactions‘ registered or recorded by them during the financial year.

The ‘specified persons’ and the ‘specified transactions’ are listed in new Rule 114E of the Income-tax Rules, 1962.

In case of individual i.e. Any person who is liable for audit under section 44AB of the Act: He has to report:

Receipt of cash payment exceeding Rs. 2,00,000 for sale of goods or providing services of any nature other than those specified

So, if the assessee has not received any cash as mentioned above, he should reply to the notice accordingly.

Here in this mail it is clearly stated: You are requested to submit the "SFT Preliminary Response" under compliance section post login to eFiling portal.

3 Like

CA Mayur Todmal (Practicing CA) (7645 Points)
Replied 19 May 2017

I think, mail is being sent to all the assesse (registered) , I have received this kind of mail.

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 19 May 2017

I received this mail too. Actually this is just a reminder for all registered assessee.

Ashim kr Ray (social service) (1685 Points)
Replied 19 May 2017

Sir,

In the mail it has been mention, to submitted Preliminary responds under compliance.so what to done?

one more thing the individual collected cash payment from different shop as against the sale made and made deposit in bank above 2lak.But to be noted cash sales not made above 2lak to single person.He made collection from different shop.what wiil be in this case.

SARAVANAN.M (PRACTICE) (83 Points)
Replied 19 May 2017

Sir,

We have received a mail for filing SFT preliminary response. But we have not done any high value transactions. ours is individual file & audit case. My doubt is 1.Whether the Registration under ITDREIN is applicable/mandatory to all the assessees & 2. Those who have not done high value transactions(i.e. need not report) are also required to file NIL report.

Thanks in advance.

Sampath Kumar (9 Points)
Replied 19 May 2017

Hi all,

I received a similar mail yesterday, saying to file 61A. But nowhere there was a valid reason why I should do this? I had copied the mail as such for your reference. Are you people referring to the same email? I hardly do any cash transactions.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Mail from IT as such copied:

Statement of Financial transactions (SFT) should be filed by all reporting persons covered under Rule 114E of Income-tax Rules, 1962. Due date for filing the same in Form 61A is 31st May 2017. Detailed procedure of ITDREIN registration and upload of Form 61A is available under the "Help" section and updated Form 61A utility and Schema are available under the download section of https://www.incometaxindiaefiling.gov.in/ and https://www.cleanmoney.gov.in/

You are requested to submit the "SFT Preliminary Response" under compliance section post login to eFiling portal.

Online filing of form 61A requires a valid class 2 or 3 digital signature certificate of responsible person filing the same. Please refer "DSC Management Utility" manual under help section on how to generate the signature file, attaching the XML with signature and uploading of XML with signature file in eFiling portal.

Please ignore this mail if already done.

Thanks & Regards,
e-Filing Team

1 Like

Ashim kr Ray (social service) (1685 Points)
Replied 19 May 2017

Sir,

confusing created whether we have to submit the return .

(Guest)

Is SFT Preliminary Response a must for audit cases even if no sale transaction in cash more that 200000 is made?

There are per day penalties if compliance is not made.

In the SFT preliminary response it is mentioned that ITDREIN is applicable only when 'any transaction type is applicable'

For all types including SFT 013 (cash payment for goods and services), there are three responses( not app/ No/ Yes)

If we select No for audit cases (who has not accepted cash), ITDREIN is needed to submit response.

If we try to generate ITDREIN, it asks for form type eg 61A etc

Since there are hardly any days left, I hope the department comes out with a clarification,

2 Like

CA RUSHABH GANDHI (CA) (212 Points)
Replied 19 May 2017

i want clarification on 2 lac limit, for deciding the reporting transaction whether we have to check the single transaction of Rs 2 lac or more or in aggregating amount for sale of goods or services...

1 Like

Rishav Kundalia (Student) (23 Points)
Replied 19 May 2017

Limit of 2 lakh is per transaction.... No aggregation rule...

Department notification is also attached herewith......

Attached File : 814184 20170519181752 systemnotification1 2017.pdf downloaded: 517 times

MURARI KHETAN (PROPRIETOR) (23 Points)
Replied 19 May 2017

But Sir, what should the assessee do in case of NIl transactions of the nature specified

Whether he has to file NIL return or not to file any return

In the second case, if he does not file any return, whether the department can initiate the penalty for non filing of return

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 19 May 2017

Error code:

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 19 May 2017

" Whether he has to file NIL return or not to file any return In the second case, if he does not file any return, whether the department can initiate the penalty for non filing of return"

I will repeat: Quoting the paragraphs from the attached file as downloaded from the departmental site:

" Basic provisions

"As per Section 285BA of the Income Tax Act, 1961 (as substituted by Finance Act, 2014 w.e.f 01-04-2015), specified entities (Filers) are required to furnish a statement of financial transaction or reportable account (hereinafter referred to as ‘statement’) in respect of specified financial transactions or any reportable account registered/recorded/maintained by them during the financial year to the income-tax authority or such other prescribed authority"

" Transactions that are required to be reported

The statement of financial transaction 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, which are registered or recorded by him on or after the 1st day of April, 2016, namely:-"

" Further, the statement shall be furnished on or before 31st May immediately following the financial year in which the transaction is registered or recorded"

" However, section 285BA(5) empower the tax authorities to issue a notice to the person who had not filed the statement within due date. In such a case, the tax authorities may serve upon such person a notice requiring him to furnish the statement within a period not exceeding 30 days from the date of service of such notice and in such a case the person shall furnish the statement within the time as specified in the notice"

Final interpretation: If any of such transaction is recorded by assessee, he must mandatorily file the SFT in form 61a.

In case, there are no such reportable transaction, and as such report not filed, but received any intimation/notice in writing for reporting any such transaction, issued by the Tax authority, then reply to the notice accordingly within time specified in the notice in writing. But for e-mail received as such, just be attentive for any such reporting, if applicable. Otherwise just furnish details under section 'complience' subsection: 'SFT preliminary Response.'