Statement of Financial Transactions: The income tax law has introduced the concept of Statement of financial transactions (SFT) to check high value transaction undertaken by the taxpayers. As per section 285BA of Income Tax Act, specified persons are required to furnish SFT or reportable account in respect for specified financial transaction.
Person required to file Statement of financial transactions or reportable accounts: As per section 285BA(1), following type of persons shall be require to furnish SFT or reportable account registered / recorded / maintained by them during a financial year.
- An assessee or
- The prescribed person in the case of an office of Government or
- A local authority or other public body or association or
- The Registrar / Sub-Registrar as per section 6 of the Registration Act, 1908
- The registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act or
- The Post Master General as referred to in section 2(j) of the Indian Post Office Act or
- The Collector as in section 3(g) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 or
- The recognized stock exchange referred to in section 2(f) of the Securities Contracts (Regulation) Act, 1956 or
- An officer of the Reserve Bank of India or
- A depository referred to in of section 2(1)(e) of the Depositories Act or
- A prescribed reporting financial institution or
- A person, other than above persons who are responsible for registering or maintaining books of account or other document containing a record of any SFT.
List of transaction that are required to be reported: The SFT shall be furnished by every person mention in column 3 of the table below in respect of all transaction and value specified in column 2 of the Table. The SFT shall be furnished for transaction registered or recorded by him on or after 1st April 2016.
| S.No. | Nature and Value of Transaction | Reporting person |
| 1. | Cash payment of an amount aggregating to INR 10 Lakh or more during the Financial year for purchase of bank drafts or pay order or banker’s cheque. | A Banking Company or a Co-operative Bank |
| Cash payment of an amount aggregating to INR 10 Lakh or more during the Financial year for purchase of pre-paid instruments issued by RBI | A Banking Company or a Co-operative Bank | |
| Cash Deposit or Withdrawals of an amount aggregating to INR 50 Lakh or more in a Financial year, from one of more current account of the person. It’s also include the bearer’s Cheque. | A Banking Company or a Co-operative Bank | |
| 2. | Cash deposit of an amount aggregating to INR 10 Lakh or more during the financial year in one or more account other than a current account and time deposit. | A Banking Company or a Co-operative Bank Post Master General |
| 3. | One or more-time deposit or an amount aggregating to INR 10 Lakh or more during a financial year. Time deposits does not include renewal of another time deposits. | A Banking Company or a Co-operative Bank Post Master General Nidhi Company Non-banking financial compnay |
| 4. | Payment made by any person of an amount aggregating to INR 1 Lakh or more in cash or INR 10 Lakh or more in any other mode against bills raised in respect of one or more credit cards issued to that person in a financial year. | A Banking company or a Co-operative bank or any other company or institution issuing credit card. |
| 5. | Receipt from any person of an amount aggregating to INR 10 Lakh or more in a F.Y. for purchasing of bonds of debentures issued by the company or institution. This does not include renewal of bonds or debentures | A company or institution issuing bonds or debentures |
| 6. | Receipts from any person of an amount aggregating to INR 10 Lakh or more in a F.Y. for acquiring shares issued by the company. It’s also includes share application money. | A company issuing share. |
| 7. | Buy back of share from any person for an amount aggregating to INR 10 Lakh or more in a Financial year. It’s does not includes share purchase in open market. | A listed company purchasing its own share |
| 8. | Receipts from any person of an amount aggregating to INR 10 Lakh or more in a Financial year for acquiring units of one or more scheme of a Mutual fund. It’s does not include transfer from one scheme to another scheme of that mutual fund. | A trustee of Mutual fund or such other person managing the affairs of the Mutual fund |
| 9. | Receipt from any person of an amount aggregating to INR 10 Lakh or more for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travelers cheque or draft or any other instruments. | Authorised person under FEMA Act 1999. |
| 10. | Purchase or sale by any person of immovable property of an amount of INR 10 Lakh or more or value of the stamp valuation authority referred to in section 50C of the act at INR 30 Lakh or more. | Inspector General or Registrar or Sub-Registrar appointed under the Registration Act 1908. |
| 11. | Receipt of cash payment exceeding INR 2 Lakh by any person for sale of goods or services of any nature. (other than those specified at S. Nos 1 to 10 of this rule, if any) | Any person who is liable for Audit under Section 44 of the Income tax Act. |
| 12. | Cash Deposit of an amount aggregating to INR 12.50 Lakh or more in a current account / INR 2.5 Lakh or more in other than current account of a person during the period 9th November 2016 to 30th December 2016. | A Banking Company or a co-operative bank Post Master General |
| 13. | Cash deposit during the period 1st April 2016 to 9th November 2016 in respect of account that are reported in point no 12. | A Banking Company or a co-operative bank Post Master General |
Reportable transaction for purpose of pre-filing income tax return: The CBDT has enhance the scope of nature of transaction to reported in SFT for the purpose of pre-filing of Income Tax Return. New, following ‘Specified Financial Transaction’ are also to be reported.
| S.No | Nature of Transaction | Reporting Person |
| 1. | Capital gain on transfer of Listed securities or Units in Mutual fund | Recognized Stock Exchange Depository as defined in Section 2(1)(e) of Depository Act Recognized Clearing Corporation Register to an issue and share transfer agent |
| 2. | Dividend Income | A Company |
| 3. | Interest Income | A banking Company or A Co-operative Bank Poster Master General Non-Banking Financial Company |
Due date of Furnishing SFT or Reportable Account: The Statement shall be furnished on or before the 31st May immediately following the Financial year in which the transaction is registered or recorded.
The Tax department may serve a notice to furnish the statement within a period not exceeding 30 days from the date of service of such notice. In such a case the person shall furnish the statement within the time limit as mentioned in the notice.
Mode for Furnishing SFT: The Statement of financial transaction shall be furnished electronically in Form No 61A. However, a post master general or a registrar or an inspector general may furnish Form No 61A in a computer readable media.
SFT shall be furnished either in Form 61A for other reporting entity or Form 61B for prescribed reporting financial institution.
Click here to download Form 61A
Click here to download Form 61B
How to File SFT Transaction:
- Login at e-filing portal and go to Services > Manage ITDREIN
- Login to Income tax portal and go to Pending Action > Reporting portal > New Registration
- Select Form Type and reporting entity category
- Fill the details and Add principal officer
- ITDREIN will be generated and confirmation sms and email will be received at registered mobile number and email id or
- At Reporting portal select appropriate Form No and submit the same.
- After successful uploading, success message will be displayed on the screen and a confirmation mail and sent will be received at registered mail id and mobile number
- The uploaded file may be either “accepted” or “rejected”. In case of rejection, reason for rejection would be mentioned and a correction form shall be submitted using above procedure.
Penalty for failure to furnish SFT or reportable account – As per section 271FA, if a person fails to furnish SFT within prescribed time then there is penalty of INR 500 per day during which such failure continues.
In case, A person receives a notice from tax department for furnishing SFT within prescribed time. After receiving the notice if such person fails to furnish SFT then there is penalty of INR 1000 per day during which the failure continues. The penalty of INR 1000 per day start after the due day mentioned in notice from tax department.
Penalty for furnishing inaccurate Statement of Financial transactions or reportable accounts – As per Section 271FAA, if a person provides inaccurate information in SFA or after discover the inaccuracy in SFA and does not inform the same within time period then there is a penalty of INR 50,000.
FAQs on Statement of Financial Transactions and Reportable Accounts – click here
Income tax rule pertain to SFT
Rule 114E – click here
Rule 114F – click here
and Rule 114G – click here
Also See, “E Invoice under GST”
Also See, “TDS Rate for F.Y. 2022-23”
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