Cash transaction which is required to be reported in Form 61A

Specified financial transaction

General query for Cash transaction which is required to be reported in Form 61A

Under Rule 114E of the Income Tax Rules, the statement of financial transaction in Form 61A is required to be furnished in compliance with section 285BA of the Income-tax Act. The due date of filing form 61A for A.Y. 2017-18 is 31st May 2017.

Where any person who is liable for audit under section 44AB of the Act, is required to furnish form 61A where the receipt of cash payment from any person exceeding Rupees two lakh for sale of goods or services of any nature.

To give a better understanding, below are the FAQ's on various cash transaction

Q 1.There are Individual Sales Invoices exceeding Rs. 2 Lakhs but were collected through' Banking Channels in the majority. There are no cases of receipt of Rs. 2 Lakhs in cash on one single day

Ans. No reporting is required in form 61A.

Q2 . There could be instances of Deposit of Rs. 2 Lakhs on a single day being collection from various parties collected at various dates.

Ans. As the case received from various parties less than 2 Lakh in a single day, no reporting is required in form 61A.

Q3.  There are many cases of sales Invoices exceeding Rs. 2 Lakhs. But there are no instances of payment of Rs. 2 Lakhs in cash on one single day, however, the cash received in different date during the year.

Ans. Yes, reporting is required for the transaction where the cash received in different date for single invoice more than Rs. 2 lakh.

Q4. There are no instances of payment of Rs. 2 Lakhs in cash on one single day against one or multiple Invoices

Ans. No reporting is required in form 61A.

Q5. Amounts deposited in Banks between 9th Nov, 16 to 30th Dec,16 out of Cash Collections from various parties, which may exceed Rs. 2 Lakhs on a single day but less than Rs. 2 lakh from a single party. These amounts were collected at various dates, though deposited into Bank on a single day

Ans. No reporting is required in form 61A.

Q6. During demonetization period, the amount receipt of Rs. 2 Lakhs in cash on a single day against multiple Sales Invoices from a single party.

Ans. As cash received more than Rs. 2 lakh from a single party, reporting is required in form 61A.