Quick Summary
The Central Board of Direct Taxes (CBDT) has issued detailed clarifications regarding Form 61 under the Income Tax Act, 2025, outlining its applicability, filing procedure, documentation requirements, and consequences of non-compliance. The form plays an important role for taxpayers making payments to financial institutions located in notified jurisdictional areas (NJAs). Form 61 corresponds to Section 176 of the Income Tax Act, 2025 and Rule 125 of the Income Tax Rules, 2026. Earlier, the equi
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FAQ :
Form 61 is an authorisation given by a taxpayer to the CBDT and tax authorities to obtain information and records from financial institutions located in a notified jurisdictional area, which is necessary for claiming deductions on payments made to them.
Any taxpayer who makes payments to a financial institution in a notified jurisdictional area and wishes to claim a deduction for these payments when calculating their taxable income must file Form 61.
Form 61 needs to be filed before the due date for submitting your income tax return for the relevant assessment year. It is generally required once per tax year.
Form 61 can only be filed online via the Income Tax e-Filing portal and must be e-verified using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). DSC is mandatory for companies and firms.
Failure to file Form 61 can lead to the disallowance of deductions for payments made to financial institutions in notified jurisdictional areas, potentially increasing your tax liability.
Once submitted, Form 61 cannot be withdrawn or modified. However, if errors are found, a revised form can be submitted along with supporting documents to the Assessing Officer.
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