Form 61B of Income-tax Act: Applicability, Due Date & How To File?

Form 61B is a report that must be filed by entities that maintain financial accounts for individuals or organizations who have carried out certain high-value financial transactions. The statement should be filed using form 61B, which is governed by section 285BA read with rule 114E. 

As the financial transactions are growing more complex and voluminous, it is necesssary for the Income Tax department to have data about significant material transactions. Form 61B is filed for calendar years, and should be filed within 31st May of the next year.

This article explains in detail, the meaning and reason for filing form 61B, reportable account, due dates and steps to file form 61B.

Understanding Form 61B (FATCA/CRS Reporting)

• Form 61B, also known as the “Statement of Reportable Account,” is a report to be furnished by a reporting financial institution regarding each account that has been identified as a reportable account pursuant to the due diligence procedure specified in rule 114H. 
• If no account has been identified pursuant to due diligence, then the reporting financial institution shall furnish a NIL statement.

The reporting under FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) and must be filed by May 31st after the end of the calendar year.

Why is Form 61B Necessary?

Form 61B is applicable for:

• Promoting Tax Transparency: Form 61B advances cross-border financial transactions' transparency, which helps the tax authorities keep a hawk's eye on probable tax evaders.
• Combating Tax Evasion: The exchanged information in Form 61B assists the tax authorities in India in keeping vigil and initiating measures to unearth and investigate instances in which residents may try to evade taxes on secreted income or concealed assets abroad.
• Matching International Practices: Therefore, Form 61B, through India's participation in the CRS, is committed to international cooperation in the prevention of tax avoidance.

Who Needs to File Form 61B?

If any account is identified as a reportable account, then the Reporting Financial Institution shall report the relevant information in Form 61B in respect of the identified reportable account. The term “Reporting Financial Institution” means 

1. Financial institution which is resident in India, but excludes any branch of such institution that is located outside India; and
2. Any branch of a financial institution (other than a non-reporting financial institution) which is not resident in India, if that branch is located in India

What is a Reportable Account?

A Reportable Account refers to a financial account pinpointed through diligent scrutiny as being held by:

1. A person whose financial information needs reporting.
2. An entity outside the United States of America, led by one or more controlling persons identified as specified U.S. persons.
3. A non-active financial entity overseen by one or more controllers categorized as per sub-clause (b) of clause (8) in rule 114F.

Due Date for Form 61B

• The due date for filing Form 61B for a particular financial year is the 31st day of May of the subsequent year. 
• Thus, for example, if you hold reportable accounts during the financial year 2024-2025, then the due date for filing Form 61B is 31st May 2025.

Information Required in Form 61B

Include the following in Form 61B:

• Part A: Statement Information
  • Reporting Entity Details (Name, ITD-REIN, GIIN if any, etc)
  • Details of the statement: type, original ID of the statement, reporting period.
  • Principal Officer Details
• Part B: Report Details (in respect of each Reportable Account)
  • Information on the account holder (Name, Address, Tax IDs, Date and Place of birth).
  • Branch details, including branch name, branch number and address
  • Account Information: Account Number, Balance/Value, Currency, etc.
  • Reporting Entity Information

How to File Form 61B

The following are the steps to file Form 61B:

Step 1: Log in to the e-filing portal using ITDREIN, Authorised Person PAN, and Password.

Step 2: Upon logging in, the ITDREIN user can upload and view the relevant form based on the selected Form type and reporting entity category during registration.

Step 3: Navigate to e-File Upload Form 61B.

Step 4: Enter the required details and click on Validate.

Step 5: After successful validation, upload the corresponding ZIP file, generate the Signature file using DSC Management Utility, and click Upload.

Step 6: Once uploaded, the statement's status will show "Uploaded". The uploaded file will undergo processing and validation. Upon completion, the status will be either "Accepted" or "Rejected", which will be visible within 24 hours from the upload time. If the status is "Rejected", the reason for rejection will be provided, and you can upload the corrected statement accordingly.

Conclusion

Form 61B is essential for supporting India in improving compliance with tax obligations and preventing evasion. If you fall into this "Specified Person" class, then grasping your Form 61B submitting obligations for nowadays is vital.

Form 61B in PDF download.