CBDT Amends Rule 114E of the Income tax Rules, 1962 [Read Notification]

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The Central Board of Direct Taxation has amended Rule 114E of the Income-tax by Notification No. 16/2021 on the 12th of March 2021. 

The rule 114E stated the mothed of Furnishing of statement of financial transaction. The statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Income Tax Act. The statement of Financial transactions is furnished in Form No. 61A. 

This rule comes into force from 12th March 2021. CBDT has substituted the word ” for the brackets, figures and the word “(6 of 1934)”, the brackets, figures, and word “(2 of 1934)”.

BajajAnd also, Sub-rule 5A also inserted after Rule 5 as “For the purposes of pre-filling the return of income, a statement of financial transaction under subsection (1) of section 285BA of the Act containing information relating to capital gains on transfer of listed securities or units of Mutual Funds, dividend income, and interest income mentioned in column (2) of Table below shall be furnished by the persons mentioned in column (3) of the said Table in such form, at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director-General of Income Tax (Systems), as the case may be, with the approval of the Board, namely:

SN Nature of transaction Class of person (reporting person)
1 Capital gains on transfer of
listed securities or units of
Mutual Funds
(i) Recognised Stock Exchange;
(ii) depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996);
(iii) Recognised Clearing Corporation;
(iv) Registrar to an issue and share transfer agent registered under subsection (1) section 12 of the Securities and Exchange Board of
India Act, 1992 (15 of 1992).
2 Dividend income A company
3 Interest income  (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
(iii) Non-banking financial company which holds a certificate of
registration under section 45-IA of the Reserve Bank of India Act,
1934 (2 of 1934), to hold or accept deposit from public

Click here to Download the Notification

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