As per section 285BA of the Income Tax Act, 1961, specified persons are required to report transactions prescribed under Rule 114E of the Income Tax Rules, 1962, which are registered or recorded on or after 1.4.2016, by furnishing statement of financial transaction in Form No. 61A.  In respect of transactions registered or recorded in the Financial Year 2016-17, the statement of financial transaction has to be furnished by such persons on or before 31st May, 2017.

It may be noted that Rule 114E, substituted with effect from 1.4.2016, also requires any person who is liable for audit under section 44AB of the Income-tax Act, 1961 to report transaction of receipt of cash payment exceeding Rs. 2 lakh (per transaction) for sale of goods or services of any nature in the Financial Year 2016-17.  The scope of transactions to be reported by banks under new Rule 114E has also been expanded.  Also, the value of transactions in respect of which reporting is required has undergone a change. Co- operative banks, NBFCs, Nidhi, companies listed on a recognized stock exchange purchasing its own securities and Post Master General are also required to report relevant transactions of the nature and value specified in Rule 114E from F.Y.2016-17.

In this context, the procedure for registration and submission of statement of financial transactions as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962, contained in CBDT Notification No. 1/2017 dated 17/1/2017, is available at http://taxguru.in/income-tax/rule-114e-reportable-transactions-guidelines-for-preparation-of-sft.html .  This Notification also contains the details of the nature and value of transactions & class of persons who are required to report such transactions.

Accordingly, these requirements may be communicated to your clients (being persons who are liable for tax audit under section 44AB or other specified persons who are required to report such transactions) or your employer (being a specified person required to report such transactions), as the case may be, so that the statement of financial transaction in respect of specified transactions registered or recorded in the Financial Year 2016-17 is filed by them on or before 31st May, 2017.

Source- ICAI

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Tags : AIR (81) ICAI (2093) SFT (24)

8 responses to “Mandatory filing of Statement of Financial Transactions (SFT) on or before 31st May, 2017”

  1. J.P.Gupta says:

    In my opinion whether there are reportable transactions or not the ‘person’ should file a NIL return. It is risky to read an exception to the rule.

  2. AJAY says:

    IT IS NOT MANDATORY TO FILE IF THERE ARE NO TRANSACTIONS AS LISTED IN RULE 114E OF THE INCOME TAX RULES. MY OPINION ONLY.

  3. Anil kumar khetan says:

    It is not mandatory

  4. Anil kumar khetan says:

    It is filed only when there is reportable transaction covered under SFT in a financial year

  5. CA. PAWAN KUMAWAT says:

    is it compulsory to file sft before 31 may 2017 for those entity covered under 44AB, if there is no report able transaction. Like NIL return.
    Kindly suggest.
    Meanwhile Thanking You

  6. RAM SINGH says:

    Is it compulsory for all the companies covered under tax audit to file SFT in FORM 61A, even though there is no transaction to report.
    or
    it is to be filed only when there is reportable transactions covered under SFT in a financial year.

  7. Snehal Thakkar says:

    Is it mandatory to register and file SFT return even when reporting items are not applicable or there are no transection during the year from the list.

  8. Prahlad Rungta says:

    Ok

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