Statement of Financial Transaction (SFT)

Statement of Financial Transaction (SFT)

Concept:

Statement of financial transaction is a concept that helps the Tax Authorities to collect information on high value transactions (specified financial transactions) undertaken by a person during the year.

Legal Framework:

SFT is governed by Section 285BA and Rule 114E of the Income Tax Act, 1961.

Applicability:

Certain class of persons/ reporting persons (as in column 2 below) shall be required to furnish SFT during a Financial Year 2016-17 to the prescribed authority as specified in Annexure 1 below.

Periodicity:

The statement in Form No. 61A shall be furnished on or before 31st May immediately following the financial year in which the transaction is registered or recorded.

Penalty for Non-Compliance:

Penalty of Rs. 100/- per day of default. Penalty of Rs. 50,000/- for providing inaccurate information in the statement.

Annexure 1:

 
Sl. No.
Column 1
Nature and value of transaction
Column 2
Class of person (reporting person)
1 (a) Payment made in cash for purchase of bank
drafts or pay orders or banker's cheque of an
amount aggregating to Rs. 10 lakh or more in a
financial year.

(b) Payments made in cash aggregating to Rs. 10
lakh or more during the financial year for purchase
of pre-paid instruments issued by Reserve Bank of
India.

(c) Cash deposits or cash withdrawals (including
through bearer's cheque) aggregating to Rs. 50
lakh or more in a financial year, in or from one or
more current account of a person.
A banking company or a cooperative bank
2 Cash deposits aggregating to Rs. 10 lakhor more in
a financial year, in one or more accounts (other
than a current account and time deposit) of a
person.
(i) A banking company or a cooperative
bank
(ii) Post Master General
3 One or more time deposits (other than a time
deposit made through renewal of another time
deposit) of a person aggregating to Rs. 10 lakh or
more in a financial year of a person.
(i) A banking company or a cooperative
bank
(ii) Post Master General
(iii) Nidhi Company
(iv) Non-banking financial
company
4  Payments made by any person of an amount
aggregating to—
(i) Rs. 1 lakh or more in cash; or
(ii) Rs. 10 lakh 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.
A banking company or a cooperative
bank or any other company
or institution issuing credit card.
5 Receipt from any person of an amount aggregating
to Rs. 10 lakhor more in a financial year 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).
A company or institution issuing
bonds or debentures.
6 Receipt from any person of an amount aggregating
to Rs. 10 lakh or more in a financial year for
acquiring shares (including share application
money) issued by the company.
A company issuing shares.
7 Buy back of shares from any person (other than
the shares bought in the open market) for an
amount or value aggregating to Rs. 10 lakhor more
in a financial year.
A company listed on a recognised
stock exchange purchasing its own
securities under section 68 of the
Companies Act, 2013
8 Receipt from any person of an amount aggregating
to Rs. 10 lakhor more in a financial year 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).
A trustee of a Mutual Fund or such
other person managing the affairs of
the Mutual Fund
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
travelers cheque or draft or any other instrument of
an amount aggregating to Rs. 10 lakhor more
during a financial year.
Authorised person under Foreign
Exchange Management Act, 1999
10 Purchase or sale by any person of immovable
property for an amount of Rs. 10 lakhor more or
valued by the stamp valuation authority referred to
in section 50C of the Act at Rs. 30 lakhor more.
Inspector-General or Registrar or
Sub-Registrar appointed under the
Registration Act, 1908
11 Receipt of cash payment exceeding Rs. 2 lakh for
sale, by any person, of goods or services of any
nature (other than those specified at Sl. Nos. 1 to
10 of this rule, if any.)
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 aggregating to—
(i) twelve lakh fifty thousand rupees or more,
in one or more current account of a
person; or
(ii) two lakh fifty thousand rupees or more, in
one or more accounts (other than a
current account) of a person.
(i) A banking company or a cooperative
bank
(ii) Post Master General
13 Cash deposits during the period 1st of April, 2016 to
9th November, 2016 in respect of accounts that are
reportable under Sl.No.12.
(i) A banking company or a cooperative
bank
(ii) Post Master General