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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 |
|
| 6 | Payment of ₹1 lakh or more in cash towards credit card(s) bill in FY |
|
| 7 | Payment of ₹10 lakh or more in FY in other than cash mode towards credit card(s) bill in FY |
|
| 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 |
|
| 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 |
|
| 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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