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Statement of financial transactions

Today we will discuss the Statement of financial transactions introduced by income tax act  u/s 285ba. The  Statement of financial transactions need to be prepared by the person required to be audited in the income tax act 1961 from this year, Earlier Annual information return to be prepared by the Specified entity the SFT will replace the AIR.

In this blog we will discuss who will required to file the SFT, nature of transaction in SFT, Procedure to file the SFT in income tax. Also if there is no transaction whether Nil SFT need to be filed

Who will be required to file the SFT ?

Business establishments or Professional liable to tax audit under section 44AB of income tax act 1961. It is to be reported by all Doctors, lawyer , architect etc liable for the audit

Entity required to file the SFT –

Banks
Professionals
Fund houses
Forex dealer
Post office
Niddhi company
Non banking financial company
Property registrar
Company issuing bonds and debenture
Listed company buying back of share

Nature of transaction in SFT –

Cash payment for purchase of Demand draft for RS 10 laks
Cash payment for purchase of RBI Instruments for RS 10 laks
Cash deposit or withdrawal of Rs 50 laks from current accounts
One time deposit of Rs 10 laks or more in a bank
Payments of Rs 1 laks in cash and 10 laks in credit card

SFT Filling of Audited Clients

Person liable to do Audit u/s 44AB –

Receipt of cash payment exceeding two lakh rupees by any person for sale of goods or services of any nature. Pls note in section 114E it is not mentioned aggregate cash sales in a year.

 

Click here to know the details of Nature of transaction – http://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007545.htm

Due date of filing the SFT ?

Due date to file the SFT is 31st May  2017

Form for filing the SFT

SFT need to be filed in separate form not with the regular form. Form 61A to be used for the SFT

Form 61A is divided in 4 parts

Is SFT Required to be file for Nil transaction ?

If there is Nil transaction than Client need to filed only Preliminary SFT response in income tax website.

SFT Preliminary Response –

Login to the income tax accounts

Click on Compliance

Click on SFT Preliminary transaction

SFT PRELIMINARY DETAILS

SFT PRELIMINARY DETAILS

 

How to file the SFT Form  in Income tax

Downloading the utility – 1. Go to e-filing portal at https://incometaxindiaefiling.gov.in/ 2. Click on the Forms (other than ITR) tab under the Downloads section. 3. Click on the Download link against Form 61A to download the Utility. It allows the user to save the file in the location selected by the user

Prepare validate and Generate the SFT file

Upload the SFT File

Login your accounts

Click on My accounts

Click on Manage ITDREIN

Click on Add Authorised person

After added the authorised person

Upload the XML File

Click here on Guideline to file the Form SFT

Penalty for not filing the SFT

Penalty is Rs 100/- per day if notice not received Rs 500/-per day if Notice received. Rs 50,000/- of provide inaccurate information

CBDT CLARIFICATION ON SFT TRANSACTION

SFT CLARIFICATION

SFT CLARIFICATION

 

About TAX BANIYA

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One comment

  1. Good Article; Addresses all the issues directly instead of requoting verbatim of circulars and provisions. Thank you.

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