Form 64A Definition
Form 64A, in simpler words, is a statement of income paid or credited by a venture capital organization under section 115U of the Income Tax Act 1961. It is usually submitted at some designated post offices as well as banks.
As an HR professional, you can expect questions about different forms and documents at any time from your employees. This is certainly why you must have a clear understanding of any and every form related to tax.
Form 64A is one of the important forms. Let’s dive and explore everything about it!
Here, we will discover:
- What is Form 64A?
- Purpose of Form 64A
- Documents and Details Required in Form 64A
- How to Download Form 64A
- Who Has to File Form 64A?
What is Form 64A?
A document used for income tax purposes, Form 64 is connected primarily with the Indian tax system.
This form is important to every individual who needs to let details of his income, deductions and tax liability be known.
It also functions as a comprehensive record, gathering together all of the essential financial details mandated by the tax authorities.
This form helps those who receive interest income, dividends and capital gains to report accurately their incomes and ensure that they are in compliance with regulations Form 64 A.
Uploading this form allows taxpayers to reveal their financial transactions in a clear manner and in the process, makes it simple for the relevant departments to check on what they owe on taxes. It’s definitely good for the operation of our taxation system as a whole.
Purpose of Form 64A
For Employees:
The Form 64A is an important piece of paper for employees, especially those who have incomes other than mere salaries from interest on deposits or dividends received in excess of one division and capital gains.
The main purpose of Form 64A is to list all these financial transactions in detail and thereby differentiate extra income other than the normal wages and salaries.
Employees would use this step to declare their incomes from investments, making it likely that anyone will pay more or less in taxes overall.
Employees in this way help taxes be more transparent and righteous, as they should, telling all the relevant data without concealment of facts.
For Companies:
Businesses also use Form 64A to register and report transactions of a financial nature in regard to interest, dividends or capital gains. This form can help enterprises make an open declaration about income from other sources apart from their routine business operations.
Enterprises must supply true information about these transactions so that tax officials can assess accurately what tax they owe altogether. Form 64A makes sure enterprises follow tax regulations, promoting open and fair financial dealings.
Under this form, companies make their tax payments and by putting in clear information helps the tax system run smoothly.
Documents and Details Required in Form 64A
To get Form 64A right, taxpayers must put together different documents and information.
The required information comprises personal details, as well as a declaration of the various financial aspects.
For instance, the kind of details required include all those things like the person’s name in full, address and Permanent Account Number(PAN) on their tax returns
Every branch and office will submit a return calculating those details separately.
It also takes into account other details such as a record of the change of assets and how property was acquired.
Compliance with regulations requires that these details be accurate as they enable tax authorities to get an accurate financial picture of the taxpayer.
How to Download Form 64A
Downloading Form 64A is easy. All you need to do is visit the Income Tax website, go to the section named ‘Forms Download Section’ and clock on Form 64A.
Who Has to File Form 64A?
Venture capital funds and companies operating in India must file Form 64A with the RBI.
This form is not confined to these entities alone. It is also mandatory for any personnel responsible for disbursing funds to unitholders in a venture capital company or fund.
That includes any person disbursing funds to its unitholders on the agreed date.
In such cases, the fund has to be filed so that tax regulations can be complied with. This way the income, expenses and other financial details related to venture capital operations are disclosed openly.
The aim of this requirement is to raise the precision and responsibility of financial dealings in the venture capital sector.
There you go!
That’s everything you need to know about Form 64A!