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Basic Provisions

-SFT is governed by Section 285BA of Income Tax Act, 1961

-Specified persons, assessees and prescribed officers and authorities shall require to furnish SFT

-Concept of SFT was framed by Income Tax Law to keep a watch on high value transactions undertaken by Tax-payer

Transactions required to be reported

Sr. Nature and Value of Transaction Reporting Person
1 Payment made in cash to purchase bank drafts or pay orders or bankers’ cheque of an amount aggregating to ₹10 lakhs or more in an FY Banking Company or Co-operative Bank
2 Payment made in cash to purchase prepaid Instruments issued by RBI of an amount aggregating to ₹10 lakhs or more in an FY Banking Company or Co-operative Bank
3 Cash deposits or cash withdrawals from current account(s) of person aggregating to ₹50 lakhs or more Banking Company or Co-operative Bank
4 Cash deposits of ₹10 lakhs or more in FY in one or more accounts (other than current account or time deposits) (example – savings account) Banking Company or Co-operative Bank or Post Master General
5 One or more time deposits of ₹10 lakhs or more in FY
  • Banking Company
  • NBFC
  • Nidhi Company
  • Post Master General
  • Co-operative banks
6 Payment of ₹1 lakh or more in cash towards credit card(s) bill in FY
  • Banking Company
  • NBFC (issuer of Credit Card)
7 Payment of ₹10 lakh or more in FY in other than cash mode towards credit card(s) bill in FY
  • Banking Company
  • NBFC (issuer of Credit Card)
8 Receipt of ₹10 lakhs or more in FY by company for acquiring bonds or debentures or shares issued by that company Company issuing such instruments or shares
9 Buy Back of shares from person for amount of value of ₹10 lakhs or more in FY by company Listed Company exercising buy back
10 Receipt of ₹10 lakhs or more in FY by mutual fund trustee or mutual fund manager
  • Mutual Fund Trustee
  • Mutual Fund Manager
11 Receipt of ₹10 lakhs or more in FY for selling foreign currency (Including foreign debit/credit card, Traveller’s Cheque, etc) Authorized person under FEMA Act
12 Purchase of immovable property of ₹10 lakhs or more Registrar or Sub-Registrar
13 Cash receipts of ₹2 lakhs or more for sale of goods or services or both Any Person who is liable to get his books audited u/s 44AB
14 Capital Gains on Listed Shares or Instruments
  • Stock Exchange
  • Depository
  • Clearing Corp.
  • Registrar of SEBI Act
15 Dividend Income Company
16 Interest Income

Due Date of Furnishing SFT

  • SFT shall be filed by prescribed on or before 31st May immediately following FY
  • SFT shall be furnished electronically in form 61A
  • SFT shall be furnished to Director or Joint Director (of Income Tax Intelligence and Criminal Investigation)
  • Non-furnishing of SFT will attract penalty of ₹500 per day of default (u/s 271FA)
  • Apart from these due dates, Authorities may also direct person to file SFT within 30 days from the date of notice served, failure may result to penalty of ₹1,000 per day of default

Consequences of Inaccuracy

  • In case the person discovers inaccuracy after SFT is filed and fails to inform and correct the same within 10 days penalty of ₹50,000 may be levied by Income Tax Authorities

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