• 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.

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