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 equivalent form under the Income Tax Rules, 1962, was Form 10FC under Section 94A and Rule 21AC.
What is Form 61?
Form 61 is an irrevocable authorisation provided by an assessee to the CBDT and designated Income-tax authorities to obtain information and records from financial institutions situated in a notified jurisdictional area. The authorisation is necessary for claiming deductions related to payments made to such institutions.
The CBDT clarified that the primary objective of the form is to facilitate exchange of information for tax purposes and ensure compliance in cross-border financial transactions involving notified jurisdictions.
Who Needs to File Form 61?
Any taxpayer making payments to a financial institution located in a notified jurisdictional area and seeking deduction of such payments while computing taxable income must file Form 61.
A notified jurisdictional area refers to a country or territory outside India notified by the Central Government due to lack of effective exchange of information.
Due Date and Filing Frequency
As per the clarification, Form 61 must be filed before the due date of filing the income tax return for the relevant assessment year. Failure to file the form within the prescribed timeline may lead to disallowance of deduction claims.
CBDT has also clarified that Form 61 is generally required to be filed once in a tax year.
Documents Required for Filing
Taxpayers filing Form 61 are required to maintain and submit supporting records including:
- Details of payments made to financial institutions in notified jurisdictional areas
- Supporting documents relating to deduction claims
- Evidence that a copy of Form 61 has been deposited with or transmitted to the financial institution concerned
Additionally, Rule 125 requires assessees to maintain ownership structure details, multinational group profiles, business descriptions, and other relevant documents relating to the specified foreign entity.
Online Filing and e-Verification
CBDT stated that Form 61 can only be filed through the Income Tax e-Filing portal in online mode. The form can be e-verified using either:
- Digital Signature Certificate (DSC)
- Electronic Verification Code (EVC)
For companies and firms, DSC is mandatory.
Upon successful filing and verification, taxpayers receive an acknowledgement number and transaction ID through email and SMS confirmation.
Authorities Empowered Under Form 61
By filing Form 61, the assessee authorises CBDT, Joint Secretary (Foreign Tax & Tax Research), and designated Income-tax authorities to obtain information and records from the concerned financial institution.
The form also involves waiver of protections relating to banking secrecy, privacy, and data protection laws for the purpose of obtaining relevant records.
The term “records” includes account opening documents, correspondence, account statements, beneficial ownership details, and related financial documents.
Can Form 61 Be Revised?
CBDT clarified that once submitted, Form 61 cannot be withdrawn or modified. However, if errors or omissions are identified, the taxpayer may submit a revised form along with supporting documents before the Assessing Officer.
Consequences of Non-Filing
Non-filing of Form 61 can have serious tax implications. If the required authorisation is not furnished, deductions relating to payments made to financial institutions in notified jurisdictional areas may be disallowed, resulting in higher tax liability for the taxpayer.
CBDT further clarified that the Income-tax Department may use information obtained through the form to verify the genuineness of deduction claims and undertake scrutiny of high-risk international transactions.
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