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Statement of financial transaction- sec44 ab person

apurva (c.a) (33 Points)

16 May 2017

In case of persons liable to tax audit u/s 44AB, who need to file Statement of Financial Transaction in Form 61A before 31st May, regarding any receipt of cash above Rs. 2,00,000.

Does the receipt include cash sales by a person in a single cash memo above Rs.2,00,000 or consolidated receipt of cash memo above Rs. 2,00,000 during the year.

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CA PRADEEP C B (Prop: Pradeep C & Company Chartered Accountant Palakkad Kerala) (166 Points)
Replied 16 May 2017

who need to file form 61A:
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.

threshold limit of 2, 00,000 include :
all accounts , and all transactions in same nature both by a single person or by a group of persons during the year.
hence both single cash memo and consolidated cash memos should be taken for 200,000.

for details search and read rule 114E on IT dept. website.

SSG (1936 Points)
Replied 16 May 2017

It includes cash receipts above above Rs.2,00,000, in single transaction. Aggregating of amounts is not done in case of entity liable for audit u/s 44AB. Point (3) of Rule 114E, specifically excludes aggregating the amounts for determining the threshold amount for reporting, by a person covered u/s 44AB.