Filling of Statement of Financial Transaction (SFT) for Financial Year 2016-17 – Important Reminder
Section 285BA of Income Tax Act, 1961 (‘Act’) read with Rule 114E of Income Tax Rules, 1962 (‘Rules’) requires certain persons/entities to furnish a return/ statement of specified financial transactions (‘SFT’) as mentioned in such Rule 114E.
Rule 114E specifies 13 numbers of transactions, information in respect of which is to be filed by the persons stated in such Rule.
Applicability- The said transactions inter alia includes “receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature” as mentioned at S.No 11. Reporting of such transaction is to be done by every person/entities who are liable for audit u/s 44AB of the Act.
Please note that Serial number 1,2,3,4,12 & 13 is related to filing of SFT by a Banking company or co-operative bank and 8,9, 10 is related to Trustee of Mutual fund , foreign exchange dealer, Registrar or Sub registrar respectively. For details, please see Rule 114E: http://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007545.htm
SFT Return- The said return/statement is to be filed in Form 61A. The due date for filing of such return for FY 2016-17 is 31st May 2017.
Penalty- Non compliance of above provisions attract penalty under section 271FA of Rs 100/- per day for which failure continues and under section 271FAA of Rs 50,000/- for inaccurate information in the statement.
The above is for your information and compliance.