SFT – Statement of Financial Transaction-Section 285BA
1.Nature of transaction to be reported:-
a)A banking company or Co-operative bank to which Banking Regulation applies:-
i.Cash payment purchase of bank drafts or pay orders or banker’s cheque Cash payments for purchase of pre-paid instruments issued by Reserve Bank of India Cash deposits in one or more current account of a person Cash withdrawals from one or more current account of a person- When Aggregating to Rs 10 lakh or more in a FY Aggregating to Rs 10 lakh or more during the FY Aggregating to Rs 50 lakh or more in a FY Aggregating to Rs 50 lakh or more in a FY.
b)A banking company or Co-operative bank to which Banking Regulation applies or Post-Master General of post office
i.Cash deposits in one or more accounts other than a current account and time deposit of a person- When Aggregating to Rs 10 lakh or more in a FY
ii.Cash deposits during the period 09th November, 2016 to 30th December, 2016 when Aggregating to Rs 12,50,000 or more in one or more current account of a person or Rs 2,50,000 or more in one or more account (other than current account) of a person
iii.Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12.
c)A banking company or Co-operative bank to which Banking Regulation applies Post-Master General of post office Nidhi Company as per Section 406 of the Companies Act, 2013 NBFC – Non banking financial company holding certificate of registration under RBI Act to hold or accept deposit from public
i.One or more time deposits (other than renewed time deposit of another time deposit) of a person
d)A banking company or Co-operative bank to which Banking Regulation applies or any other company or institution issuing credit card
i.Credit card payments made by any person either in cash or by any other mode in a FY when Aggregating to Rs 1 lakh or more in cash or Rs 10 lakh or more by any other mode in a FY
e)A company or institution issuing bonds or debentures
i.Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal) when Aggregating to Rs 10 lakh or more in a FY
f)A company issuing shares
i.Receipt from any person for acquiring shares (including share application money) issued by the company when Aggregating to Rs 10 lakh or more in a FY
g)Listed company purchasing its own securities under section 68 of the Companies Act, 2013
i.Buyback of shares from any person (other than the shares bought in the open market) when Aggregating to Rs 10 lakh or more in a FY
h)A trustee of a Mutual Fund or any such other person authorised to manage the affairs of the Mutual Fund
i.Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than transfer from one scheme to another) when Aggregating to Rs 10 lakh or more in a FY
i)Authorised person as referred to in Section 2(c) of the Foreign Exchange Management Act, 1999
i.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 when Aggregating to Rs 10 lakh or more during a FY
j)Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.
i.Purchase or sale of immovable property when Transaction value or valuation of stamp duty authority referred in Section 50C for an amount of Rs 30 lakhs or more.
k)Any person who is liable for audit under section 44AB of the Act
i.Cash receipt for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10) when Exceeding Rs 2 lakh
2.How to report
a)prescribed reporting financial institution shall file form 61B and other shall file form 61A.A Post Master General or a Registrar or an Inspector General may furnish SFT in a computer readable media being a Compact Disc or Digital Video Disc (DVD), along with the verification in Form-V on paper.
b)SFT shall be filed electronically, under the digital signature certificate
c)SFT shall be filed to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation).
d)Procedure:
i.Registered on e-filing portal,
ii.log in
iii.go to My Account
iv.>Manage ITDREIN (Income Tax Department Reporting Entity Identification Number)
v.Click on ‘Generate New ITDREIN’
vi.Select form type and
vii.Reporting entity category and
viii.click on ‘Generate ITDREIN’ ITDREIN will be generated and
ix.Send confirmation registered email and reply SMS on mobile number
x.ITDREIN generated will now appear under My Account>Manage ITDREIN
xi.Go to e-file>Upload Form ‘X’ (appropriate Form No appears based on the selection made during registration)
xii.Verify/enter PAN, Form Name, FY, Reporting entity category, Half year, upload type i.e., whether original/correction form /Nil statement
xiii.After successful validation of the above details,
xiv.Upload the file along with digital signature certificate
xv.Success message will be displayed on the screen on successful uploading and confirmation email and SMS will be sent to registered email id and mobile number respectively
xvi.Kindly check the status. If accepted then keep in your record. If rejected then read reason for rejection and then file correction form within a period of 30 days .
3.Due date of furnishing SFT-on or before 31 May of the FY, immediately following the FY in which the transaction is recorded or registered. For 31st March, 2021 the last date was June 20, 2021.
4.Consequences of failure to comply with Section 285BA and related Rules
a)In case of non-furnishing of SFT within due date penalty of Rs. 500 per day of default
5.After 30 days from the date of service of notice penalty of Rs 1000 per day will be levied from the day immediately following the day on which the specified time in the notice expires.
6.Inaccurate information in SFT
7.If any person who has furnished SFT, comes to know or discovers any inaccuracy in the information provided in the statement, he shall inform the inaccuracy in such statement and furnish the correct information to the income-tax authority or specified authority or agency within 10 days.
8.Penalty of Rs 50,000 will be levied on prescribed reporting financial institution if it provides inaccurate information in the statement where: Inaccuracy is due to a failure to comply with the prescribed due diligence requirement or is deliberate on the part of that person; or the person knows of the inaccuracy at the time of furnishing the statement of financial transaction or reportable account, but does not inform the prescribed income-tax authority or such other authority or agency; or the person discovers the inaccuracy after the statement of financial transaction or reportable account is furnished and fails to inform and furnish correct information within 10 days as mentioned above