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Directorate of Income Tax (Intelligence and Criminal Investigation), Mumbai

Submission of Statement of Financial Transactions (SFT) in Form 61A –  Due date- 31st May of the FY, immediately following the FY in which the transaction is recorded or registered.

Note: Due to COVID-19, the due date of SFT compliance for FY 2019-20 has been extended from 31st May, 2020 to 31st March, 2021.

Legal Framework

Section 285BA- Obligation to furnish Statement of Financial Transactions (SFT)

Rule 114E – Furnishing of Statement of Financial Transactions in Form 61A

Form 61A  –  Format and Instructions

IDENTIFYING TRANSACTIONS TO BE REPORTED – SUB-RULES OF RULE 114E

Class of persons (reporting person) Nature and Value of Transaction
Banks Cash payment for purchase of DDs/POs of amount aggregating Rs 10 lakh or more in a year ET
Banks Cash payment of Rs 10 lakh or more for purchase of prepaid RBI instruments (RBI bonds, etc.)
Banks Cash deposit/withdrawal aggregating Rs 50 lakh or more from current a/c of a person
Banks/Post Master General Cash deposit aggregating Rs 10 lakh or more in any one or more accounts of a person (other than current account and time deposit)
Banks/Post Master General/Nidhi/NBFC One or more time deposits (other than those through renewal of another time deposit) of a person aggregating Rs 10 lakh or more
Banks Payment in cash aggregating in a year Rs 1 lakh or more (in cash) or Rs 10 lakh or more (by any other mode) against credit card bill issued to a person during the year
Company/Institution issuing bonds/debentures Receipt aggregating Rs 10 lakh or more in a year from a person for acquiring bonds/debentures
Company issuing shares Receipt from a person aggregating Rs 10 lakh or more for acquiring shares (including share application money)
Company listed in recognized stock exchange Buy back of shares from any person (other than bought from open market) for an amount aggregating Rs 10 lakh or more
Mutual Fund Trustee/Manager Receipt from a person aggregating Rs 10 lakh or more for acquiring units of Mutual Fund
Foreign Exchange Dealer Receipt from a person for sale of foreign currency, including against foreign exchange card or expenditure in such currency against debit/credit card or issue of travellers cheque or draft aggregating Rs 10 lakh or more
IG Registration or Registrar/Sub-Registrar of Property Purchase/Sale by any person of immovable property for Rs. 30 lakh or more or valued by the stamp valuation authority at Rs 30 lakh or more
Any person liable for audit u/s 44AB of the Act Receipt of cash payment exceeding Rs 2 lakh by any person for sale of goods/services (other than those specified above)

Aggregation Rule

♠ Applicable for all transaction types except SFT- 012 (Purchase or sale of immovable property) and SFT- 013 (Cash payment for goods and services).

♠ Reporting person shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person

(a) take into account all the accounts of the same nature maintained in respect of that person during the financial year;

(b) aggregate all the transactions of the same nature recorded in respect of that person during the financial year;

(c) attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person;

Consequences of non-compliance

Penalty @ Rs.100/- per day of default

Penalty, on non-compliance to notice calling for return, @ Rs. 500/- per day

Penalty of Rs. 50,000/- for providing inaccurate information in the statement

RECENT NOTIFICATIONS

Resource Description Where Available
Systems Notification No.1 dated 17 Jan 2017 on SFT Notification issued by the Directorate of Systems specifying the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies E-filing Portal (https://incometaxindiaefiling.gov.in ) and National Website (http://www.incometaxindia.gov.in ) of Income Tax Department
User Manual for ITDREIN Registration and Upload User Manual to explain steps in registration of filer and upload of SFT (Form 61A) User Manuals section under the Help Button on E-Filing portal Home page
SFT Report Generation Utility User Guide User Guide to explain steps in using the Java utility to assist the filer in preparation of SFT (Form 61A) in XML file
SFT Quick Reference Guide One    page   document    with          steps   for preparation of SFT
SFT Report Generation Utility Java utility to assist the filer in preparation of SFT (Form 61A) in XML file Forms (Other than ITR) link under the Downloads Section on E-Filing portal Home page
Form 61A Schema (For Developers) XSD file which contains the schema in which SFT (Form 61A) needs to be prepared and uploaded/submitted Schema link under the Downloads Section on E-Filing portal Home page

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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26 Comments

  1. Amit Jain says:

    Dear Sir/ Mem
    IN AY 2016-17 detail of cash transition need to justify in SFT 01-04-2016 to 31-03-2017 or 09-11-2016 to 31-03-2017 ???

  2. alwar says:

    Dear Sir,

    In my company, we have submitted NIL report for Form 61A, but subsequently some records to be reported in Form 61A. But the correction statement requires original statement number. What is the original statement number for Nil report.

    Pl clarify.

    alwar

  3. krishna says:

    whether all the time deposits opened by transfer also to be reported or only fresh deposits are to be reported please reply sir?

  4. Prashanth says:

    If a mistake take place in submitting SFT response as “nill transaction in place of Yes”,in case of shares. What was the solution.

  5. HITESH says:

    A strong civil disobedience movement is required against ” TAX TERRORISM” in India. Would ICAI take lead.,keeping aside its professional interest?

  6. GANDHI MOHAN BHARATI says:

    One or more time deposits (other than those through renewal of another time deposit) of a person aggregating Rs 10 lakh or more is yo be reported.
    What happens when one splits the deposits or closes them and reinvests them for better earnings? Will they be considered as fresh Deposits,.
    Example –
    Earlier Deposit of 20 lakhs for tenure of 5 years earned 9.00%.
    On maturity, it is reinvested for 1 Year which earns better interest than for 5 Years.
    Will the new Deposit be considered as a Fresh Deposit ?
    Probably the Assesses will get harassed for explanation of this fresh Deposit though it was only a renewal.
    Same thing will happen if the Deposits are transferred from one Bank to the other for better service.

  7. Ram says:

    is it compulsory to file sft before 31 may 2017 for those entity covered under 44AB, if there is no Such transaction Recorded. or NIL return is Required
    Kindly suggest.

  8. Sachin Patil Gadakh says:

    Even if there is no such transaction, then also the form 61 A has to be submitted..? or what is the process in such NIL case..??Please Reply

  9. Tax Adv. B.S.K.Rao says:

    Assesses can not do the business & should always go being the Tax Deptt. of Govt. of India. Toglak Sarkar aisa kanun lata hi. Kaya horaha hi India may.

  10. Nirav Shah says:

    whether two different xml to be generated for different SFT code related reporting? and combine them in single zip file while uploading? OR two different ITDREIN id to be created for two different reporting of SFT by same Company?

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