Statement of Financial transactions – Form 61A filing & Submitting ‘SFT Preliminary Response’

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 Financial Year 2019-20, the compliance are more stringent.  I am covering this topic through my article

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

Some Examples as to how to submit SFT filing of preliminary response as under:

Particulars Preliminary Response Filing of Form 61A
Persons not covered under Tax Audit (other than companies) Response as “NOT APPLICABLE” and no need to apply for ITDREIN Number Form is not required to be filed.
Persons covered under Tax Audit and do not have Cash Sales of Rs. 2 lakhs per transaction during the year Response as “NO” and required to apply for ITDREIN Number Upload form 61A with option “ND – No Data”
Persons covered under Tax Audit and have Cash Sales of Rs. 2 lakhs per transaction during the year Response as “YES” and required to apply for ITDREIN Number Upload form 61A with option “Filing of Original Statement” and provide the details (name of party, date, amount, PAN and address)
In the case of Companies who have received share application money or against issue of shares above Rs 10 lakhs from single party, during the year Response as “YES” and required to apply for ITDREIN Number Upload Form 61A with option “Filing of Original Statement” and provide the details (name of party, date, amount, PAN and address)
In the case of Companies who have not received share application money or against issue of shares above Rs 10 lakhs, from single party during the year Response as “NO” and required to apply for ITDREIN Number Upload Form 61A with option “ND – No Data”

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.

But due to COVID-19 pandemic, the due date has been extended upto 31st March, 2021.

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.

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.

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

User can log in on Reporting Portal with communicated credentials.

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)

Author: Rajanvi Advisory Services – Mumbai and Rajkot.

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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22 Comments

  1. SANDIP CHANDA says:

    Preliminary response filed erroneously. After that we realised 61 A also needs to be filed and it was submitted correctly but there was a delay in submission.
    What can be the penalty in this case?

  2. Kirti Girdhar says:

    Is every individual is required to file Preliminary SFT Response for the Financial Transactions he has entered in to? Although all the transactions have been reported by the reporting Persons.

  3. Kirti Girdhar says:

    i have the same question which Pooja has asked. Is every individual required to file preliminary SFT response in relation to the financial transactions he has entered in to?

  4. Akash Shukla says:

    Do the company need to file SFT preliminary Response if the company have not issued shares during the F.Y. 2016-17.

  5. Jayesh Shah says:

    My client assessee is not falls to get under tax audit.
    how ever he has made no.of Transactions in stock exchange as well as he has made term deposit worth Rs.20.00.000/-
    Need he file the SFT 0n Forn no.61A

  6. Paras says:

    It has been confirmed with the IT Department that only reporting entities have to submit Forms. If you are covered by tax audit however do not have any cash sales, you are no reporting entities and accordingly not required to submit the form with NIL or NA value. Reporting Entity is one which has a reportable transaction.

  7. upasana says:

    there is no transaction in cash above 2 lacs but still notice is being received, do we need to rply in form 61A for co. assessee & indvl covered under Tax Audit if the notice is being received for the same

  8. Pooja says:

    Is everyone required to file Preliminary SFT response (i.e. individual assessee also (without tax audit))?
    I also want to know that why preliminary SFT is there as assessee shall file Form 61A directly, So what is the purpose of Preliminary SFT?

    1. KRISHNA REDDY M L says:

      Hi Ma’am,
      As per Press Information, The registration of reporting person (ITDREIN registration) is mandatory only when at least one of the Transaction Type is reportable. A functionality “SFT Preliminary Response” has been provided on the e-Filing portal for the reporting persons to indicate that a specified transaction type is not reportable for the year. But in above article as per 2nd row giving diff. meaning. Can u pls clarify on this.

      Press Information Bureau: http://pib.nic.in/newsite/PrintRelease.aspx?relid=162147

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