About ITDREIN (“Income Tax Department Reporting Entity Identification Number” )

ITDREIN abbreviated for “Income Tax Department Reporting Entity Identification Number “ is a 16 character identification number issued to reporting entities liable to report under Section 285BA of the Income Tax Act, 1961.

ITDREIN is used by reporting entities to furnish a statement of financial transactions (“SFT”) in Form 60, Form 61, Form 61A, Form 61B introduced by the Income Tax Department for reporting of certain financial transactions to the department.

ITDREIN is inclusive of :

XXXXXXXXXX	PAN number
A	Form Code of Registering Entity
B	Code for Reporting Entity
SSS	Sequence Number

Mandatory Reporting for Entities

The Income Tax Department brought forward the concept of reporting of financial transactions by certain reporting entities on an obligatory basis. Such an initiative was taken to curb black money transactions and widen the norms of tax scrutiny on big fat entities.

With the issue of Amendment in Finance Act 2014, the government provided for an obligation for specified persons to furnish a statement of financial transactions or reportable account to the department.

Reporting of financial transactions with the use of ITDREIN was prescribed under Section 285BA as read with Rule 114E of the Income Tax Rules 1962 specifies for any person being :

Any assessee ;
Any prescribed person in any office of Government ;
Any local authority, public body, association ;
A registrar or sub-registrar under the Registration Act (Section 6) ;
Registration authority under the Motor Vehicles Act,1988 ;
Postmaster General under Post Office Act,1898 ;
Collector referred under Section 3 (g) of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation And Resettlement Act 2013 ;
Recognized Stock exchange under Securities Contract ( Regulation ) Act, 1956 ;
Any officer of Reserve Bank under Reserve Bank of India Act,1934 ;
Depository under the Depository Act, 1996
Or any other prescribed reporting financial institution

Who is required to maintain books of accounts, register on the reporting portal or obligatory to keep a systematic record of all financial transactions or managing a particular reportable account – to furnish a statement in respect of all such enquired financial transactions to the department or the income tax authorities or to an appropriate authority prescribed.

What transactions are to be reported using ITDREIN?

Reporting entity or person obtaining ITDREIN prescribed under the Income Tax law shall have to report the following Specified Financial Transactions on the reporting portal located at http://report.insight.gov.in/:

Under Section 285BA

Transactions specifically asked by the Income Tax Authority;
Purchase of Bank Drafts in Cash, Pay Orders in Cash, Prepaid Instruments in Cash, Deposits made in Current Account or other accounts ;
Time deposits, payment of credit cards, purchase of debentures, shares or other securities, mutual fund units or any foreign currency ;
Purchase or sale made of any immovable property, payment made for goods or services in cash, etc.

Rule 114E

Amount in aggregate of Rs 10 Lakh involved in the purchase of bank transfer orders, prepaid instruments, cash deposits, cash withdrawals by a banking company or a specified class of persons ;
Payments made by a person in cash in aggregate of Rs 10 Lakh or more against the credit card or any bill raised in a financial year ;
Receipt of an amount aggregating to Rs 10 Lakh or more by a company or an institution issuing bonds or debentures ;
Companies undertaking issue of shares, buyback of shares for 10 Lakh in aggregate or more;
Any mutual fund agency or entity managing affairs of any mutual fund receiving amount of Rs 10 Lakh in aggregate or more in a scheme of a mutual fund or in any related transaction.
For amount received in aggregate of Rs 10 Lakh or more by any authorized person registered under or referred under the Foreign Exchange Management Act,1999 ;
Cash deposits or cash receipts or any other transaction referring to an amount made in excess of Rs 2 Lakh by any person specified to be reported to the authorities.