Summary: Notification No. 2 of 2026 dated 10 September 2026, issued by the Directorate of Income Tax (Systems), specifies the format, procedure and guidelines for submission of Statement of Financial Transactions (SFT-2518) relating to mutual fund transactions by Registrar and Share Transfer Agents. The notification is issued under sub-rule 6 of rule 237 of the Income-tax Rules, 2026, read with section 508(1) of the Income-tax Act, 2025, for reporting information relating to capital gains on transfer of units of Mutual Funds for the purposes of pre-filling income-tax returns. It requires all Registrar and Share Transfer Agents registered under section 12(1) of the Securities and Exchange Board of India Act, 1992 to prepare the prescribed data file from their internal systems and submit it through the SFTP server using separately communicated login credentials. The notification provides for a separate control statement to be signed, verified and furnished by the Designated Director, while the detailed guidelines, submission procedure, control statement format, data structure and validation rules are contained in Annexures A to E. The SFT is required to be furnished on a half-yearly basis, with reporting for the first half ending 30 September due by 31 October and reporting for the remaining half ending 31 March due by 30 April. Reporting entities must also provide reported transaction information to account holders to facilitate reconciliation with the Annual Information Statement (AIS) in Form 168, rectify inaccuracies through correction or deletion statements, and maintain appropriate information-security, archival and retrieval policies. The notification takes effect from the date of issue.
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)
Notification No. 2 of 2026 | Dated: New Delhi, 10 September, 2026
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT-2518) for Mutual Fund Transactions under section 508(1) of the Income-tax Act, 2025 read with sub-rule 6 of rule 237 of the Income-tax Rules, 2026 by Registrar and Share Transfer Agent
Section 508 of the Income-tax Act, 2025 and rule 237 of Income-tax Rules, 2026 require specified reporting persons to furnish statement of financial transaction (SFT).
2. For the purposes of pre-filling the return of income, sub-rule 6 of rule 237 specifies that a statement of financial transaction under section 508(1) containing information relating to capital gains on transfer of units of Mutual Funds shall be furnished by the class of person (reporting person) mentioned in column 4 of sl. no. 1 of the Table under the said rule in such Form, at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the Board.
3. In exercise of the powers conferred under sub-rule 6 of rule 237, the DGIT(S) hereby specifies the guidelines for preparation and submission of statement of financial transaction (SFT), which are enclosed as Annexure A and Annexure B respectively. The format of control statement to be submitted by the Designated Director is enclosed as Annexure C. The data structure and validation rules are enclosed as Annexure D and Annexure E respectively.
4. All Registrar and Share Transfer Agents registered under section 12(1) of the Securities and Exchange Board of India Act, 1992 (15 of 1992) are required to prepare the data file in prescribed format from their internal system. Reporting entities are required to submit the data files using SFTP server using the login credentials (communicated separately).
5. A separate control statement (refer annexure C) is required to be signed, verified and furnished by the Designated Director.
6. The statement of financial transaction will be submitted on half yearly basis. The SFT relating to 1st half of the Financial Year ending on 30th September and format. Procedure and Guidelines for submission of Statement of Financial Transactions [SFTl for Mutual Fund Transactions by Registrar and Share Transfer Agent remaining half of the financial year ending on 31st March shall be furnished on o r before 31st of October and 30th of April respectively.
7. The reporting entities are also required to provide information of Mutual Fund transactions, reported to lnco~ Tax Department, to the account holder which will enable taxpayers to reconcile the information displayed in the Annual lnfonnati on Statement (AlS) (Form 168).
8. In case the reporting person/entity comes to know or discovers any Inaccurac y in the information provided in the statement or the defects have been communicated to the reporting person/entity, it is required to remove the defects by submitting a correction/deletion state ment.
9. The reporting person/entity is required to document and implement appropriate information security policies and procedures with clearly defined roles and responsibilities to ensure security of submitted information and related information/documents. The reporting person/entity is also required to document and implement appropriate archivaJ and retrieval policies and procedures with clearl y defined roles and responsibilities to ensure that submitted information and related infonnation/documents are available promptly to the competent authorities.
10. Th is issues with the approval of the CBDT. This Notification shall come into effect from the date of issue.
(Manu Malik)
DGIT (Systems) CBDT
Copy to:
1. PPS to the Chairman and Members, CBDT. Kartavya Bhawan, ew Delhi.
2. All Pr. Chief Commissioners/ Pr. Director Generals of Income Tax and all Chief Commissioners/ Director Generals of Income Tax -with a request to circulat e amongst all officers in their regions/ charges.
3. JS (fPL)-1 &2/ Media coordination and Official spokesperson of CBDT
4. DIT (IT)/ DIT (Audit)/ DIT (Vig.)/ ADO (System) I, 3, 4, 5, 6/CIT (CPC-ITR) Bengaluru, CIT (E-FiJjng) Bengaluru, CIT(OSD), Bengaluru, CIT(OSD)(DFC) Bengaluru, PCTT(e-Verification), CIT (OSO)PMU Delhi, CIT(OSD)-lnsight 2.0, CIT(ITBA), CIT(OSD)(lTBA), CIT (CPC-TDS) Ghaziabad.
5. ADG (PR, PP&OL) with a request for advertisement campaign for the Notification.
6. TPL and ITA Divisions ofCBDT. 7. The Institute of Chartered Accountants of India, IP Estate, New D elhi.
7. Web Manager, “incomctaxindia.gov.in” for hosting on the website.
8. Database cell for uploading on [www.irsofficersonline.gov.in](http://www.irsofficersonline.gov.in) and in DGI T(S) Comer.
9. ITBA publisher for uploading on ITBA portal.
(Sudhanshu Shekhar)
ADG(Systcms)-2 CBDT
