Submit Statement of Financial Transactions (SFT) in Form 61A

• September 2, 2020
• CA Chandan Agarwal's Office

Directorate of Income Tax (Intelligence and Criminal Investigation), Mumbai

Submission of Statement of Financial Transactions (SFT) in Form 61A –  Due date- 31^st May of the FY, immediately following the FY in which the transaction is recorded or registered.

Note: Due to COVID-19, the due date of SFT compliance for FY 2019-20 has been extended from 31^st May, 2020 to 31^st March, 2021.

Legal Framework

Section 285BA- Obligation to furnish Statement of Financial Transactions (SFT)

Rule 114E – Furnishing of Statement of Financial Transactions in Form 61A

Form 61A  –  Format and Instructions

IDENTIFYING TRANSACTIONS TO BE REPORTED – SUB-RULES OF RULE 114E

Class of persons (reporting person)	Nature and Value of Transaction
Banks	Cash payment for purchase of DDs/POs of amount aggregating Rs 10 lakh or more in a year ET
Banks	Cash payment of Rs 10 lakh or more for purchase of prepaid RBI instruments (RBI bonds, etc.)
Banks	Cash deposit/withdrawal aggregating Rs 50 lakh or more from current a/c of a person
Banks/Post Master General	Cash deposit aggregating Rs 10 lakh or more in any one or more accounts of a person (other than current account and time deposit)
Banks/Post Master General/Nidhi/NBFC	One or more time deposits (other than those through renewal of another time deposit) of a person aggregating Rs 10 lakh or more
Banks	Payment in cash aggregating in a year Rs 1 lakh or more (in cash) or Rs 10 lakh or more (by any other mode) against credit card bill issued to a person during the year
Company/Institution issuing bonds/debentures	Receipt aggregating Rs 10 lakh or more in a year from a person for acquiring bonds/debentures
Company issuing shares	Receipt from a person aggregating Rs 10 lakh or more for acquiring shares (including share application money)
Company listed in recognized stock exchange	Buy back of shares from any person (other than bought from open market) for an amount aggregating Rs 10 lakh or more
Mutual Fund Trustee/Manager	Receipt from a person aggregating Rs 10 lakh or more for acquiring units of Mutual Fund
Foreign Exchange Dealer	Receipt from a person for sale of foreign currency, including against foreign exchange card or expenditure in such currency against debit/credit card or issue of travellers cheque or draft aggregating Rs 10 lakh or more
IG Registration or Registrar/Sub-Registrar of Property	Purchase/Sale by any person of immovable property for Rs. 30 lakh or more or valued by the stamp valuation authority at Rs 30 lakh or more
Any person liable for audit u/s 44AB of the Act	Receipt of cash payment exceeding Rs 2 lakh by any person for sale of goods/services (other than those specified above)

Aggregation Rule

♠ Applicable for all transaction types except SFT- 012 (Purchase or sale of immovable property) and SFT- 013 (Cash payment for goods and services).

♠ Reporting person shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person

(a) take into account all the accounts of the same nature maintained in respect of that person during the financial year;

(b) aggregate all the transactions of the same nature recorded in respect of that person during the financial year;

(c) attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person;

Consequences of non-compliance

Penalty @ Rs.100/- per day of default

Penalty, on non-compliance to notice calling for return, @ Rs. 500/- per day

Penalty ofRs. 50,000/- for providing inaccurate information in the statement

RECENT NOTIFICATIONS

•Notification No. 95 dt 30th Dec 2015

•Notification dt 30th Dec 2016- registration for filers

•Notification dt 17th Jan 2017 (Explanation/Guidance)

Read more on: https://taxguru.in/income-tax/submission-statement-financial-transactions-sft-form-61a.html