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Everything about SFT

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Everything about SFT
  • 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

Everything about SFT

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.Everything about SFT
  • 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.