Form 61 Income Tax Rules 2026 pdf download and Key points
FORM NO. 61
[See rule 125]
Authorisation for claiming deduction in respect of any payment made to any financial institution located in a notified jurisdictional area
Under the Income-tax Rules, 2026, Form No. 61 replaces the erstwhile Form 10FC. It is governed by Section 176 of the Income-tax Act, 2025 (which replaces the old Section 94A) and Rule 125 of the Income-tax Rules, 2026.
Here are all the comprehensive key points regarding Form No. 61:
1. Purpose of the Form Form 61 is an irrevocable authorisation given by a taxpayer to the Central Board of Direct Taxes (CBDT) and designated Income-tax authorities. It authorizes them to obtain information and “records” from a financial institution located in a Notified Jurisdictional Area (NJA). This enables the Income-tax Department to:
- Directly seek information from these foreign financial institutions.
- Verify the genuineness of payments and validate claims for tax deductions.
- Undertake deeper scrutiny of high-risk international transactions.
Note: An NJA is a country or territory outside India notified by the Central Government due to a lack of effective exchange of information.
2. Applicability (Who Should File) Any person (assessee) who makes a payment to a financial institution located in a Notified Jurisdictional Area, and wishes to claim a deduction for that payment while computing their income, is strictly required to file Form 61.
3. Frequency and Due Date
- Frequency: The form should be filed once per tax year.
- Due Date: It must be filed before the due date for filing the Income Tax Return (ITR) for the relevant assessment year.
4. The Two-Copy Filing Procedure Rule 125 prescribes a specific procedure for this form:
- First Copy: The assessee must deposit or transmit the first copy of the duly filled Form 61 directly to the financial institution in the NJA.
- Second Copy: The second copy of Form 61, along with concrete evidence that the first copy was sent to the financial institution, must be submitted to the jurisdictional Assessing Officer (AO).
5. Structure and Waivers within the Form
- Part A: Captures the particulars of the financial institution (Name, Address, PAN, Email ID, and Contact Number).
- Authorisation and Waiver: The applicant explicitly authorises the CBDT (or Joint Secretary of FT&TR-I/II) to access their accounts. Crucially, by filing this form, the applicant waives all protections provided under any law, including laws relating to data protection, privacy, or banking secrecy.
- Definition of Records: The authorities are authorized to access “records,” which include documents identifying the account holder/beneficial owner, account opening documents, correspondence, account statements, and statements of assets.
6. Mandatory Documents and Maintenance of Information To successfully file the form, the taxpayer must provide:
- Details of the payment made to the financial institution.
- Supporting documents relating to the claim of deduction.
- Evidence of transmitting the form to the financial institution.
Additionally, Rule 125 requires the assessee to keep and maintain specific records, including a description of the specified person’s ownership structure (for shareholding >10%), a profile of the multinational group, and a broad description of the specified person’s business.
7. Mode of Filing and Verification
- Online Only: Form 61 can only be filed electronically via the Income Tax e-Filing portal.
- Verification: It must be e-verified using a Digital Signature Certificate (DSC)—which is mandatory for companies and firms—or an Electronic Verification Code (EVC) via OTP for individuals.
8. Consequences of Non-Compliance and Outcome
- No Withdrawal: Once Form 61 is successfully submitted, it cannot be withdrawn. However, errors can be rectified by submitting a revised form along with supporting documents to the Assessing Officer.
- Default Consequence: If the form is not filed and authorization is not obtained by the due date, the deduction for the payment made to the financial institution will be outright disallowed, increasing the taxpayer’s tax liability.
- Final Outcome: Based on the information received from the foreign institution, if the Assessing Officer is satisfied with the genuineness of the transaction, the deduction is allowed. If not satisfied, the AO will disallow the claim.