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Transaction Specific Guidelines for Preparation of Statement of Financial Transactions (SFT)
Transaction specific guidelines for preparation of Statement of Financial Transactions (SFT) are given in following paragraphs.
SFT- 001: Purchase of bank drafts or pay orders in cash
| Transaction Code | SFT- 001 |
| Transaction Description | Purchase of bank drafts or pay orders or banker’s cheque in cash |
| Nature and value of transaction | Payment made in cash for purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating to ten lakh rupees or more in a financial year. |
| Class of person required to furnish | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). |
| Remarks | 1. For purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | |
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as DD – Bank draft or pay order or banker’s cheque (B.3.1) |
SFT- 002: Purchase of pre-paid instruments in cash
| Transaction Code | SFT- 002 | |
| Transaction Description | Purchase of prepaid instruments in cash | |
| Nature and value of transaction | Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007). | |
| Class of person required to furnish | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). | |
| Remarks | 1. For purchase of prepaid instruments from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) | |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | ||
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | ||
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | ||
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | ||
| 6. One report would include details of one person along with transaction details | ||
| 7. The Product Type should be specified as PI – Prepaid Instrument (B.3.1) | ||
SFT- 003: Cash deposit or withdrawals in current account
| Transaction Code | SFT- 003 | |
| Transaction Description | Cash deposits or cash withdrawals (including through bearer’s cheque) in current account. | |
| Nature and value of transaction | Cash deposits or cash withdrawals (including through bearer’s cheque) aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person. | |
| Class of person required to furnish | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). | |
| Remarks | 1. For deposits in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) | |
| 2. All the accounts of the same nature maintained in respect of that person during the financial year should be considered and the entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the account is maintained in the name of more than one person (refer Rule114E) | ||
| 3. The threshold limit should be applied separately to deposits and withdrawals (refer Rule114E) | ||
| 4. Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account alongwith details of account and related persons | ||
| 5. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) | ||
| 6. The Report Type should be specified as BA – Bank/Post Office Account (A.2.7) | ||
| 7. The Account Type should be specified as BC -Current Account (C.2.1) | ||
SFT- 004: Cash deposit in account other than current account
| Transaction Code | SFT- 004 | |
| Transaction Description | Cash deposits in one or more accounts (other than a current account and time deposit) of a person. | |
| Nature and value of transaction | Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. | |
| Class of person required to furnish | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act).
Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). |
|
| Remarks | 1. For deposits in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) | |
| 2. All the accounts of the same nature maintained in respect of that person during the financial year should be considered and the entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the account is maintained in the name of more than one person (refer Rule114E) | ||
| 3. Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account alongwith details of account and related persons | ||
| 4. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) | ||
| 5. The Report Type should be specified as BA –Bank/Post Office Account (A.2.7) | ||
| 6. The Account Type should be specified as BS – Savings Account or ZZ – Other Account (C.2.1) | ||
SFT- 005: Time deposit
| Transaction Code | SFT- 005 | |
| Transaction Description | Time deposits (other than a time deposit made through renewal of another time deposit) | |
| Nature and value of transaction | One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person. | |
| Class of person required to furnish | (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); | ||
| (iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); | ||
| (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (6 of 1934), to hold or accept deposit from public. | ||
| Remarks | 1. For payment for a credit card in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for any amount(refer Rule 114B) | |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | ||
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | ||
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | ||
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | ||
| 6. One report would include details of one person along with transaction details | ||
| 7. The Product Type should be specified as TD – Time Deposit (B.3.1) | ||
SFT- 006: Payment for credit card
| Transaction Code | SFT-006 | |
| Transaction Description | Payments made by any person in respect of one or more credit cards issued to that person, in a financial year. | |
| Nature and value of transaction | Payments made by any person of an amount aggregating to— | |
| (i) One lakh rupees or more in cash; or | ||
| (ii) Ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. | ||
| Class of person required to furnish | A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card. | |
| Remarks | 1. For payment for a credit card in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for any amount(refer Rule 114B) | |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | ||
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | ||
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | ||
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | ||
| 6. One report would include details of one person along with transaction details | ||
| 7. The Product Type should be specified as CC- Credit Card (B.3.1) | ||
SFT- 007: Purchase of debentures
| Transaction Code | SFT-007 |
| Transaction Description | Purchase of debentures year for acquiring bonds or debentures issued by the company or institution. |
| Nature and value of transaction | Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). |
| Class of person required to furnish | A company or institution issuing bonds or debentures. |
| Remarks | 1. For payment for acquiring bonds issued by any institution it is obligatory to quote PAN for purchase of bond of amount exceeding Rs 50,000/-(refer Rule 114B) |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | |
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as BD – Bonds or Debentures (B.3.1) |
SFT- 008: Purchase of shares
| Transaction Code | SFT-008 |
| Transaction Description | Purchase of shares (including share application money) issued by the company. |
| Nature and value of transaction | Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company. |
| Class of person required to furnish | A company issuing shares. |
| Remarks | 1. For payment for acquiring shares in any institution it is obligatory to quote PAN for purchase of shares of amount exceeding Rs 1,00,000/- (refer Rule 114B) |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | |
| 3.The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as SI – Shares issued (B.3.1) |
SFT- 009: Buy back of shares
| Transaction Code | SFT-009 |
| Transaction
Description |
Buy back of shares |
| Nature and value of
transaction |
Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year. |
| Class of person
required to furnish |
A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013). |
| Remarks | 1. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) |
| 2. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 3. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 4. The Report Type should be specified as AF-Aggregated Financial Transactions (A.2.7) | |
| 5. One report would include details of one person along with transaction details | |
| 6. The Product Type should be specified as SB –Shares bought back (B.3.1) |
SFT- 010: Purchase of mutual fund units
| Transaction Code | SFT-010 |
| Transaction Description | Purchase of mutual fund units in a financial year for acquiring units of one or more schemes of a Mutual Fund |
| Nature and value of transaction | Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund). |
| Class of person required to furnish | 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. |
| Remarks | 1. For payment for acquiring mutual funds of any financial institution it is obligatory to quote PAN for purchase of mutual fund of amount exceeding Rs 1,00,000/-(refer Rule 114B) |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule 114E) | |
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 5. The Report Type should be specified as AF-Aggregated Financial Transactions (A.2.7) | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as MF -Mutual Fund (B.3.1) |
SFT- 011: Purchase of foreign currency
| Transaction Code | SFT-011 |
| Transaction Description | Purchase of Foreign currency |
| Nature and value of transaction | 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 of an amount aggregating to ten lakh rupees or more during a financial year. |
| Class of person required to furnish | Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999). |
| Remarks | 1. For payment for acquiring foreign exchange from any institution it is obligatory to quote PAN for purchase of foreign currency in cash for amount exceeding Rs 50,000/-(refer Rule 114B) |
| 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) | |
| 3. The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) | |
| 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as FC – Foreign Currency (B.3.1) |
SFT- 012: Purchase or sale of immovable property
| Transaction Code | SFT-012 |
| Transaction Description | Purchase or sale of any person of immovable property. |
| Nature and value of transaction | Purchase or sale by any person of immovable property for 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. |
| Class of person required to furnish | Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. |
| Remarks | 1.For payment for acquiring any immovable property it is obligatory to quote PAN for purchase of amount exceeding Rs 10,00,000/-(refer Rule 114B) |
| 2.The relevant reporting format is Part A (Statement Details) and Part D (Report Details) | |
| 3.The Report Type should be specified as IM – Immovable Property Transactions (A.2.7) | |
| 4.One report would include details of one property along with seller and purchaser details |
SFT- 013: Cash payment for goods and services
| Transaction Code | SFT-013 |
| Transaction Description | Cash payments for goods and services. |
| Nature and value of transaction | Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of Rule 114E) |
| Class of person required to furnish | Any person who is liable for audit under section 44AB of the Act. |
| Remarks | 1. For sale or purchase, by any person, of goods or services of any nature it is obligatory to quote PAN for amount exceeding two lakh rupees per transaction: (refer Rule 114B) |
| 2. The aggregation rule is not applicable for identification of reportable transactions | |
| 3. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) | |
| 4. The Report Type should be specified as AF-Aggregated Financial Transactions (A.2.7). | |
| 5. The reporting format aggregates the transactions of one person in one report | |
| 6. One report would include details of one person along with transaction details | |
| 7. The Product Type should be specified as ZZ –Others (B.3.1) |
SFT- 014: Cash deposits during specified period
| Transaction Code | SFT- 014 | |
| Transaction Description | Cash deposits during the period 1st April, 2016 to 8th November, 2016 and 9th November, 2016 to 30th December, 2016. | |
| Nature and value of transaction | Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to ̶ (i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or (ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person.
Cash deposits during the period 1st April, 2016 to 9th November, 2016 in respect of accounts that are reportable. |
|
| Class of person required to furnish | i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898) | ||
| Remarks | 1. The due date for furnishing statement containing details of cash deposits during the period 1st April, 2016 to 8th November, 2016 and 9th November, 2016 to 30th December, 2016 (SFT-014) is 31st January, 2017. | |
| 2. For deposits in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day or aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.” (refer Rule 114B) | ||
| 3. All the accounts of the same nature maintained in respect of that person during the financial year should be considered and the entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the account is maintained in the name of more than one person. (refer Rule114E) | ||
| 4. Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account. | ||
| 5. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) | ||
| 6. The Report Type should be specified as BA – Bank/Post Office Account (A.2.7) | ||
| 7. The Account Type should be specified as BS (Savings Account), BC (Current Account) or ZZ (Other Account) | ||
Source- Notification No. 1 of 2017 Dated: 17th January, 2017
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Dear Sir,
please guide if For bulk purchase/ sale between 2 dealers of foreign exchange, where amt is recd in cheque above 10 lacs.
Is it a reportable transaction under sft11??
Please guide.