Statement of Financial Transaction (SFT)
To keep a watch on high value transactions undertaken by the taxpayer, the Income-tax Law has framed the concept of Statement of Financial Transaction (SFT). With the help of the statement, the tax authorities will collect information on certain prescribed high value transactions undertaken by a person during the year. SFT is to be filed by certain prescribed entities and in such statement they are required to furnish the details of specified financial transactions registered/recorded/maintained by them during the year.
Form and Filing Deadline
The SFT is furnished in Form 61A as per the provisions of Section 285BA. This Statement is filed annually on or before 31st of May immediately following the financial year in which the transaction is registered or recorded. However, from Financial Year 2021-22 onwards, the SFT in relation to transactions in listed securities and units of mutual funds is required to be filed quarterly. Filing of SFT statement is applicable from FY 2016-17 onwards and statements prior to FY 2016-17 are to be furnished as Annual Information Return (AIR).
Prescribed Entities to File SFT
| Sl No | Class of person | Nature and value of transaction |
|---|---|---|
| 1 | A banking company | Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank. |
| 2 | A banking company or any other company or institution issuing credit card. | Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year. |
| 3 | A trustee of a Mutual Fund or such other person managing the affairs | Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund. |
| 4 | A company or institution issuing bonds or debentures. | Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the company or institution. |
| 5 | A company issuing shares through a public or rights issue. | Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the company. |
| 6 | Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908. | Purchase or sale by any person of immovable property valued at thirty lakh rupees or more. |
| 7 | A person being an officer of the Reserve Bank of India, who is duly authorized by the Reserve Bank of India in this behalf. | Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India. |
Post Offices and Sub-Registrars can submit SFT statements to TIN Facilitation Centres (TIN-FCs) and all the other category of filers should furnish the statement online at e-Filing portal of Income Tax Department.
Fee Structure (Inclusive of GST @ 18%)
We also undertake electronic data conversion activity to enable the Specified Persons not familiar with the file formats to file the statements electronically within the prescribed time limit at a very nominal Fee. You are requested to contact us to avail this service.