Procedure for registration & submission of Statement of Financial Transactions (SFT)
Procedure for registration & submission of SFT
The Income Tax Department has replaced earlier requirement of filing annual information return (AIR) with Statement of Financial Transactions (SFT), the changes have created new classes of first time filers who have to file SFT of specified transactions for the Financial Year 2016-17. Section 285BA of the Income Tax Act, 1961 read with Rule 114E of the Income Tax Rules, 1962 specifies that SFT is required to be furnished in Form 61A for the Financial Year 2016-17 on or before 31st May 2017
Following are the nature and value of transaction to be furnished by the below mentioned person:
S. No | Name of Transaction | Value of Transaction | Reporting Person |
1 | (A) Payment made in cash for purchase of bank drafts or pay orders or banker's cheque. | Amount aggregating to Rs. 10,00,000/- or more in a financial year. | Banks |
(B) Payments made in cash 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). | Amount aggregating to Rs. 10,00,000/- or more in a financial year. | ||
(C) Cash deposits or cash withdrawals (including through bearer's cheque) in or from one or more current account of a person. | Amount aggregating to Rs. 50,00,000/- or more in a financial year | ||
2 | Cash deposits in one or more accounts (other than a current account and time deposit) of a person | Amount aggregating to Rs. 10,00,000/- or more in a financial year | (i) Banks (ii) Post offices |
3 | One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person. | Amount aggregating to Rs. 10,00,000/- or more in a financial year of a person. | (i) Banks; (ii) Post offices; (iii) Nidhi Companies (iv) NBFC registered to hold or accept deposit from public. |
4 | Payments made by any person | Amount aggregating to— (i) Rs. 1,00,000/- or more in cash; or (ii) Rs. 10,00,000/- 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 | Banks or any other company or institution issuing credit card. |
5 | Receipt from any person 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). | Amount aggregating to Rs. 10,00,000/- or more in a financial year | A company or institution issuing bonds or debentures. |
6 | Receipt from any person, for acquiring shares (including share application money) issued by the company. | Amount aggregating to Rs. 10,00,000/- or more in a financial year | A company issuing shares. |
7 | Buy back of shares from any person (other than the shares bought in the open market) | Amount aggregating to Rs. 10,00,000/- or more in a financial year | Listed Company |
8 | Receipt from any person, 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). | Amount aggregating to Rs. 10,00,000/- or more in a financial year | Mutual Funds |
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.
| Amount aggregating to Rs. 10,00,000/- or more in a financial year | Authorised person as referred to in clause (c) of section 2 of FEMA, 1999. |
10 | Purchase or sale by any person of immovable property. | For an amount of Rs. 30,00,000/- or more or valued by the stamp valuation authority referred to in section 50C of the Income Tax Act, 1961 at Rs. 30,00,000/- or more. | Registrars |
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 above) | Amount exceeding Rs. 2,00,000/- | Any person who is liable for audit under section 44AB of the Act. |
12 | Cash deposits during the period 09th November, 2016 to 30th December, 2016 | Amount aggregating to: (i) Rs. 12,50,000/- or more, in one or more current account of a person; or
(ii) Rs. 2,50,000/- or more, in one or more accounts (other than a current account) of a person | (i) Banks (ii) Post offices |
13 | Cash deposits during the period 01st April, 2016 to 9th November, 2016 | In respect of accounts that are reportable under S. No 12 | (i) Banks (ii) Post offices |
Form 61A has to be filed electronically using digital signature. Under Section 271FA, penalty for failure to furnish SFT is Rs. 100/- per day of default. In case a notice has been issued to the assessee for furnishing of SFT within period specified in notice, penalty would be Rs. 500/- for each day of default commencing from the day immediately following the day on which the time specified in notice for furnishing the return expires. When there is a failure to furnish accurate SFT then there would be a penalty of Rs. 50,000/-.