Section 285BA of the Income Tax requires specified reporting persons to furnish statement of financial transaction. Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A. As you all are aware that Budget 2019 widens scope of Statement of Financial Transactions (SFT). So therefore from this Financial Year 2019-20, the compliance will be more stringent.

1. Who are required to file statement of SFT in Form 61A:

  • Any person who is liable for audit under section 44AB of the Income –tax Act
  • A Banking Company
  • A Co-operative Bank
  • Post Master General of Post office
  • A Nidhi referred to in sec 406 of the Companies Act 2013
  • A Non-banking Financial Company (NBFC)
  • Any Institution issuing Credit Card
  • A Company or Institution issuing bonds or debentures
  • A Company issuing shares
  • A company listed on a recognised stock exchange purchasing its own securities
  • A Trustee of a Mutual Fund or such other person authorized by the trustee
  • Authorized Dealer, Money Changer, Off-shore Banking Unit or any other person defined in FEMA, 1999
  • Inspector-General or Sub-Registrar appointed under Registration Act, 1908

2. What is the periodicity and due date of furnishing statement of financial transaction

The statement of financial transactions (online return in Form No. 61A with digital signature) shall be furnished on or before 31st of May, immediately following the financial year in which the transaction is registered or recorded. i.e For FY 2019-20 the due date will be 31st May, 2020.

3. Nature of transactions alongwith its monetary value required to be reported under SFT

SI   No Nature of transaction alongwith respective reporting person Value of transaction
1 Cash payment purchase of bank drafts or pay orders or banker’s cheque reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies Aggregating to Rs 10 lakh or more in a FY
Cash payments for purchase of pre-paid instruments issued by Reserve Bank of India and reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies Aggregating to Rs 10 lakh or more during the FY
Cash deposits or Cash withdrawals (including through bearer’s cheque) in one or more current account of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies Aggregating to Rs 50 lakh  or more in a FY
2 Cash deposits in one or more accounts other than a current account and time deposit of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or by Post Master General Aggregating to Rs 10 lakh or more in a FY
3 One or more time deposits (other than renewed time deposit of another time deposit) of a person reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or by Post Master General or by Nidhi companies or By NBFCs Aggregating to Rs 10 lakh or more in a FY
4 Credit card payments made by any person either in cash or by any other mode in a Financial Year reported by A banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies or any other company or institution issuing credit card Aggregating to:

Rs 1 lakh or more in cash

or

Rs 10 lakh or more by any other mode in a FY

5 Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal of the bond or debenture issued) reported by A company or institution issuing bonds or debentures Aggregating to Rs 10 lakh or more in a FY
6 Receipt from any person for acquiring shares (including share application money) issued by the company and Reported by a company issuing shares Aggregating to Rs 10 lakh  or more in a FY
7 Buyback of shares from any person (other than the shares bought in the open market) reported by a company listed on a recognised stock exchange purchasing its own securities Aggregating to Rs 10 lakh  or more in a FY
8 Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than transfer from one scheme to another of that Mutual Fund) reported by A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf Aggregating to Rs 10 lakh or more in a FY
9 Receipt from any person 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 travellers cheque or draft or any other instrument reported by Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 Aggregating to Rs 10 lakh or more during a FY
10 Purchase or sale of immovable property by any person reported by Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. An amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more
11 Receipt of Cash payment for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10) reported by any person who is liable for audit under section 44AB of the Act Exceeding Rs 2 lakh

4. How to Register on Reporting Portal for SFT filing

The Reporting Portal allows reporting entities to register themselves with the Income Tax Department (ITD). To access the portal, visit the URL: https://report.insight.gov.in

The step-by-step process to registering through this portal is as follows:

1. Log in on e-filing portal and select Reporting Portal under My Account

2. Select New Registration and click on Continue. (Entities who have already generated an ITDREIN but have not registered their Principal Officer on e-filing portal, shall select Manage Principal Officer).

3. Choose the relevant Form Type and Reporting Entity Category and click Next to continue.

4. On the Reporting Entity Detail Page, fill out the form accurately.

5. The fields under Sponsored Entity or Trustee Documented Trust only have to be filled if Form Type 61B is selected.

6. Once details are filled, Click Add Principal Officer button at the bottom.

7. On the new page, enter complete details of the Principal Officer.

8. User can “Submit” the form or may proceed to add “Designated Director”, ”Nodal Officer”, “Alternate Nodal Officer” and “Sub Users”.

9. Once all the users are added and upon clicking the Submit button, the following dialog box appears:

Your details have been successfully submitted. Please find the registration Request Number “xxxxxxxxxxxx”. An email has been sent to your registered email id.

Download Acknowledgment PDF

Acknowledgement message will be displayed with link to download Acknowledgment PDF.

10. Upon successful registration, ITDREIN and user credentials will be sent to registered email id.

User can log in on Reporting Portal with communicated credentials.

5. How to file Statement of Financial Transaction online?

  • For SFT Preliminary Response submission and view facility kindly go to Reporting Portal (Use this link – https://report.insight.gov.in/reporting-webapp/portal/homePage )
  • Register yourself on Reporting portal under My Account menu
  • Please note that all statements uploaded to the Reporting Portal should be in the XML format consistent with the prescribed schema published by the Income-tax Department
  • Once XML is generated, sign and encrypt the XML using the Submission utility and prepare package to be uploaded
  • Submit the statement on Reporting Portal
  • Upon successful submission, an email with “Acknowledgment Number” will be sent to the registered email id
  • For more details, refer “SFT quick reference Guide” and “Reporting Portal User Guide” in Resources section of Reporting Portal.

6. What are different parts of Form 61A

Form 61A has two parts. Part A which contains statement level information is common to all transaction types.

The report level information has to be reported in one of the following parts (depending of the transaction type):

  • Part B (Person Based Reporting)
  • Part C (Account Based Reporting)
  • Part D (Immovable Property Transaction Reporting)

7. Consequences of not furnishing statement of financial transactions or reportable accounts?

  • Failure to furnish statement of financial transaction or reportable account will attract a penalty under section 271FA at the rate of Rs. 100 for every day during which such failure continues.
  • As per provisions of section 285BA(5), the prescribed Income-tax authorities may issue a notice to a person who is required to furnish such statement and has not furnished the same in the prescribed time, directing person to file the statement within a period not exceeding 30 days from the date of service of such notice and in such case, the person shall furnish the statement within the time specified in the notice.
  • If such person fails to file the statement within the specified time then a penalty of Rs. 500 for every day for which the failure continues, may be levied from the day immediately following the day on which the time specified in such notice for furnishing the statement expires

Attachment: User manual provided by the Income Tax Department dated 31.05.2017.

(Republished with Amendments)

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19 Comments

  1. Santano Viegad says:

    My wife withdrew Rs. 12lacs from ppf acct to the credit of our joint sb acct. A sum of Rs 12 lacs was remitted to my son for purchase of a flat in Uk.This amt is shown in form 26 AS as FTS TRANSACTION. How should I report on itr1

  2. SAMIR L SHAH says:

    PLEASE LET ME KNOW ABOUT TYPE OF TRANSACTION MENTIONED IN 26AS REGARDING SFT TRANSACTION.
    IN MY ONE CLIENT’S 26AS, TYPE OF TRANSACTION MENTIONED AS SFT-004,006, AND 012.
    HOW EVER CLIENT REFUSE, AS HE DIDN’T MADE SUCH TRANSACTIONS.

  3. Khushboo says:

    I have filed Form 61A for one of my client.However there is one error in the form which we noticed now.
    Section 271FAA says to rectify the mistake within 10 days.I wanted to ask whether 10 days is to be taken from filing of form 61A or from the date of noticing the mistake?

  4. Grover s k says:

    There is one query Whether Investment in Senior citizen saving scheme 2004 is also covered under fresh term deposit of Rs 10 lac and more and to be reported by banks/post offices

  5. Anil Bhagwani says:

    As per guidelines other than current account amount considered is in excess of 10 lakhs per annum. Then what about cash credit accounts. Should this also be considered as other then current account and limit be considered 10 lakhs

  6. Suvanjan Ghosh says:

    Hi
    I hav a business, my return is audited, i want to kniw if i bill a party 20k x 12months =240k in different dates and different Invoice s , and have received the payment thru cash on different dates . Am i liable to file SFT report .
    Similarly in my current account i am depositing my daily market Collection 3 to 4lacs is it also liable for SFT declaration….Plz help

    1. Kajal Maisheri says:

      1) If you have received single cash receipt more than
      2 lakhs then you have to file SFT. You can’t
      aggregate the value.
      2) If you are depositing the cash or withdrawing the cash from your current account and the aggregate value is excceding Rs. 50 lakhs then bank will report SFT. You don’t have to file SFT.

      1. ATUL KHETRE says:

        madam , one of my nidhi company chairman personal 26AS shown in PART E name of SFT filer is bank , chairmans compliance portal shows response is pending for high value transactions . then what to do now ???

  7. Saikrishnan says:

    The IT Department has populated all the income tax accounts of the assesses with the SFT requirement. I understand that this is to be submitted by individual assessees only if (A) the assessee is subjected to Tax audit and (B) There are cash transactions of Rs 2 lakhs and above. If I do not fall under the above two, should I still submit a NIL TRANSACTIONS report through online?

  8. Lalith Jain says:

    Hey Sandeep, in case of Bank Transactions the Bank is liable to file SFT and not you. So you need not worry for SFT Compliance

  9. K K LLA says:

    HELO SIR I HAS RESPONSE OF STF REPORT NIL TRANSACTION BUT MY CURRENT BANK ACCOUNT TRANSACTION IS OVER THAN 50 LH. IN A YEAR.
    WHAT ABOUT THIS CASH

  10. Sanjeev Kumar Goel says:

    Dear Sir
    Please answer the queries posted here otherwise what is the purpose of posting queries here if not to be answered here.
    Hope you understand the seriousness of teh matter.
    Thanks

  11. Anant Salunke says:

    hello sir
    we sale goods to certain parties round about 2,50,000 pm in different dates in a month
    so it is require to furnish the details.
    please guide

  12. Sanjeev Kumar Goel says:

    Sir I have a query that I had more than 50 LAKH cash deposit and withdrawal transactions in my CASH/CREDIT or OD account. Do i need to file SFT? If yes than what particulars I have to file, whether transactionwise details or lumpsum amount details or party wise details I have to submit.
    Thanks with Regards in advance.

  13. Sonali says:

    Thanks for the information. Have one query. While uploading Form 61A online, what type of file has to be uploaded ? XML or zip folder ? As the online portal says (.zip) file.

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