Reporting portal was introduced by the Income Tax department under the Project Insight platform to provide an interface between the reporting entities and Income Tax department. In this article, we discuss the concept of the reporting portal.
Reporting entity is an entity that is mandated to furnish a Statement of Financial Transaction in Form 61A or Statement of Reportable Account in Form 61B with the Income Tax Department. The official notification issued by the Income Tax Department states that from 9th April 2018 onwards, all aspects pertaining to reporting entities like registration, uploading of statement and other facilities for Form 60, 61, 61A and 61B would be handled through the reporting portal. Some of the categories of reporting entities which are applicable to most taxpayers are mentioned below:
For Form 61 and Form 61A
- Mutual Fund
- NBFC/Nidhi Company
- Post Office
- Reserve Bank of India
- Securities Market Intermediary
- Co-operative Bank
- Banking Company
For Form 61B
- Specified Insurance Company
- Investment Entity
- Custodial Institution
- Depository Institution
Benefits of the Reporting Portal
The reporting portal provides the following benefits over the e-filing portal:
- Seamless data processing and quality monitoring.
- Data encryption for improved security.
- Seamless exchange of information with reporting entities.
- Comprehensive resources module for capacity building.
- Seamless Reporting Entity compliance management.
- Dedicated help-desk support.
Reporting Portal Registration
There is no separate registration process available on the reporting portal. To enable access to the reporting portal, the reporting entities Principal Contact must add the users through the income tax e-filing portal. To create a user on the reporting portal, the Principal Contact would initiate the registration by accessing the Reporting Portal link at e-filing Portal under “My Account” tab. Principal Contact will then identify the authorised persons i.e. Principal Officer and Designated Director and enter the basic information required to create a user. On submission, user ids and passwords will be provided to respective users on the reporting portal. The users will then be able to log in on the Reporting Portal using the communicated User id and password.
Forms Required to be Filed
The following forms must be filed by assessees through the reporting portal:
According to the Income Tax Act, it is mandatory for an entity to obtain PAN of the transacting party. If the transacting party doesn’t hold a PAN, form 60 needs to be filed by the transacting party. Details of Form 60 must be reported in form 61 for the period of 1st October to 30th March within the 30th of April; as well as for the period of 1st October to 30th September within the 31st of October.
A reporting entity must file a statement of financial transactions in Form 61A. The report under this form has to be produced by the entity for the relevant financial year within the 31st of May immediately succeeding the particular financial year.
Form 61B is filed for the implementation of FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard). Reportable accounts identified by the entity must be filed in Form 61B for the calendar year by the 31st of May following the end of the particular calendar year.
ITDREIN is a 16 character identification number allotted by the Income Tax Department to a Reporting Entity for reporting on reportable transaction of a specified type. ITDREIN is a system-generated number. Once the registration application is processed and accepted by the Income-tax Department, the system will generate the ITDREIN and communicate the same to the Reporting Entity.
ITDREIN is a 16-character identification number in the format XXXXXXXXXX.YZNNN where XXXXXXXXXX is PAN or TAN of the Reporting Entity, Y is Code of Form, Z represents Reporting Entity Category and NNN is the sequence number.