Form 61B: Applicability and Key Points for Taxpayers in India

Understanding Form 61B Applicability: A Guide for Taxpayers

Form 61B is an important tax form that is required to be filed by certain taxpayers in India. In this blog, we will take a closer look at the applicability of Form 61B and what taxpayers need to know about this form.

What is Form 61B?

Form 61B is a statement of reportable account that is required to be furnished by an Indian resident who is a specified person. Specified persons are defined as persons who are resident in India and who have a specified account or are the beneficial owner of a specified account. The specified accounts include accounts held by foreign entities such as trusts, foundations, partnerships, and other non-individual entities.

Applicability of Form 61B

The following persons are required to file Form 61B:

1. Indian residents who are specified persons
2. Persons who are not Indian residents but are acting as an intermediary in relation to a specified account
3. Reporting financial institutions who maintain the specified account

It is important to note that the obligation to file Form 61B is not limited to taxpayers who have taxable income. Even if you do not have taxable income, you may still be required to file Form 61B if you meet the above criteria.

Penalties for Non-Filing or Late Filing of Form 61B

Taxpayers who are required to file Form 61B must ensure that they file the form within the prescribed due date. Failure to file the form or late filing of the form can attract penalties under the Income Tax Act, 1961. The penalty for non-filing or late filing of Form 61B is INR 50,000 for each year of default.

In addition to the above, here are some additional key points that taxpayers should be aware of when it comes to Form 61B:

1. The due date for filing Form 61B is July 31st of the relevant assessment year. For example, for the financial year 2021-22, the due date for filing Form 61B is July 31st, 2022.
2. Reporting financial institutions are required to file Form 61B electronically with the Income Tax Department. Indian residents who are specified persons can file the form either in electronic or physical format.
3. The information to be provided in Form 61B includes the name and address of the reporting financial institution, the name and address of the specified person, the nature and value of the account, and other details as specified in the form.
4. In case the specified person is not able to obtain the required information from the reporting financial institution, they should make a declaration to this effect in the form.
5. Form 61B is required to be filed for each specified account held by the specified person. This means that if the specified person holds multiple specified accounts, they will need to file multiple forms.

Conclusion

Form 61B is an important tax form that is required to be filed by certain taxpayers in India. If you are an Indian resident who is a specified person or if you are acting as an intermediary in relation to a specified account, you may be required to file Form 61B. It is important to ensure that you file the form within the prescribed due date to avoid penalties. If you are unsure whether you are required to file Form 61B or if you need assistance in filing the form, it is recommended that you consult with a tax professional.

Read more useful content:

• form 15g
• form 15h
• form 16a
• form 16b
• form 67