- Section 285BA of the Income Tax Act, 1961, governs the requirement for specified persons, assesses, prescribed officers, and authorities to furnish Statement of Financial Transactions (SFT).
- The concept of SFT was introduced in the Income Tax Law to monitor high-value transactions carried out by taxpayers.
Transactions required to be reported
Due Date of Furnishing SFT
- The filing deadline for Statement of Financial Transactions (SFT) is on or before the 31st of May, immediately following the fiscal year.
- SFT needs to be submitted electronically in Form 61A.
- The designated recipients for the SFT are the Director or Joint Director of Income Tax Intelligence and Criminal Investigation.
- Failure to furnish the SFT will result in a penalty of ₹500 per day of default under section 271FA.
- Additionally, authorities reserve the right to direct individuals to file the SFT within 30 days from the date of notice served. Failure to comply may lead to a penalty of ₹1,000 per day of default.
Consequences of Inaccuracy
If a person discovers inaccuracies in the filed SFT and fails to inform and rectify them within 10 days, the Income Tax Authorities may impose a penalty of ₹50,000.