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 –
Non banking financial company
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
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