CBDT on Twitter has made an announcement that due to heavy traffic people were experiencing issues in filing SFT transaction and therefore SFT filing shall remain open for next few days. However it is still not mentioned that whether this is extension of due dates or they have just kept it open for few days but late fees shall be applicable. The message from CBDT on twitter is as under:
“SFT filers may please note: Due to heavy traffic on the reporting portal, some filers may have encountered difficulties in filing SFT returns. It is informed that the functionality for filing of SFT returns will remain open for a couple of days more to enable smooth filing of SFT returns. In case of any specific issue/query, please connect with our helpdesk at 1800 103 4215.”
To read the tweet CLICK ME.
List of SFT transaction which needs to be reported under Income Tax is as under:
| Sl. No. | Nature and value of transaction | 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 co- operative bank |
| 2. | Cash deposits aggregating to Rs. 10 lakh or 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 co-operative 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 co-operative 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 co-operative bank or any other company or institution issuing credit card. |
| 5. | Receipt from any person of an amount aggregating to Rs. 10 lakh or 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 lakh or 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 lakh or 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 lakh or 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 lakh or more or valued by the stamp valuation authority referred to in section 50C of the Act at Rs. 30 lakh or 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 9th November, 2016 to 30th December, 2016 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) A banking company or a co- operative bank to which the Banking Regulation Act, 1949 applies
(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 |
| 13. | Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under SI.No.12 because cash deposited in this account between 9th November, 2016 to 30th December, 2016 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) A banking company or a co- operative bank to which the Banking Regulation Act, 1949 applies
(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 |
| 14. | Capital gains on transfer of listed securities or units of Mutual Funds | Recognised Stock Exchange;
Depository as defined in section 2(1)(e) of Depositories Act, 1996; Recognised Clearing Corporation; Registrar to an issue and share transfer agent registered under section 12(1) of the SEBI Act, 1992. |
| 15. | Dividend income | A Company |
| 16. | Interest income | A Banking company or a Co-op. Bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
Post Master General as referred to in section 2(j) of the Indian Post Office Act, 1898; Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. |
Section 271FA of the Income Tax Act prescribes penalty for failure to provide/ furnish SFT statements which is Rs. 500 per day if SFT not filed within stipulated date and Rs. 1000 per day if SFT is not filed even after issue of notice by income tax authority however it is important to note that penalty is at discretion of officer and is not mandatory on all assessee who fails to submit SFT and in most cases as of now no penalty is being charged as income tax department wants more and more people to provide information.
“271FA. If a person who is required to furnish a statement of financial transaction or reportable account under sub-section (1) of section 285BA, fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under said sub-section (1) may direct that such person shall pay, by way of penalty, a sum of five hundred rupees for every day during which such failure continues:
Provided that where such person fails to furnish the statement within the period specified in the notice issued under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of one thousand rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires.“
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