CBDT Directs Self-Reporting Orgs to File Details of High-Value Transactions by June 30, 2024

Introduction

The Central Board of Direct Taxes (CBDT) has issued a crucial directive requiring self-reporting organizations (SROs) to submit details of high-value transactions conducted during the fiscal year 2022-23 by June 30, 2024.

Understanding CBDT’s Directive

Definition of SROs

SROs encompass various organizations such as banks, post offices, cooperatives, fintechs, and mutual fund houses.

Thresholds for Reporting

Transactions exceeding Rs 50 lakh, share sales and purchases above Rs 10 lakh, and post office deposits and withdrawals exceeding Rs 5 lakh must be reported.

The Compliance Challenge

Non-compliance Issues

Around 6,000 reporting entities have not filed the required information, provided incomplete details, or submitted it in an incorrect format.

CBDT’s Directive to Field Formations

Field formations are tasked with ensuring compliance among reporting entities.

Ensuring Compliance

Deadline and Reporting Requirements

All reporting authorities must file details of high-value transactions through Form 61A, “Statement of Financial Transaction,” by June 30, 2024.

Role of Reporting Authorities

Regional banks, post offices, and regional registries sometimes fail to file details on time, leading to compliance challenges.