Statement of Financial Transactions (SFT)

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What is SFT?

Table Of Contents

Overview

The Income-tax department requires a notified taxpayer, including prescribed financial institutes, to submit a statement of specified financial transactions during a financial year. Such notified taxpayers who maintain, register, or record such specified financial transactions, are mandated to submit a statement of such financial transactions (SFT) to the income tax authority or such other specified agency or authority.
This step was undertaken by the Government and ministry of finance to curb the black money and widen the tax base.
Such specified financial transactions are submitted to the authority in the form of a statement under Form 61A.
Form 61A lists down all the Specified Financial Transactions carried out in a particular financial year. This helps the Income Tax department to identify high-value transactions and curb the possibility of tax evasions.

Transactions required to be reported under Form 61A

Responsible person Type of Transaction Limit of Transaction
Banking Companies including Co-operative Banks Cash payment for purchase orders/ Demand drafts (DD) More than Rs. 10 lakhs annually
Deposits/withdrawals from a current account of a particular account holder More than Rs. 50 lakhs
Cash payments for purchasing any prepaid RBI instruments such as RBI bonds, etc. More than Rs. 10 lakhs
Banking Company including Co-operative Bank and Post Master General of Post Office Aggregate cash payments in a year against any credit card bill issued to a customer in a financial year More than Rs. 1 lakh
Aggregate Online payments of any credit card bill, issued to a customer in a financial year More than Rs. 10 lakhs
Banking Companies along with Co-operative Banks and Post Offices Deposits in one or more account of a particular account holder More than Rs. 10 lakhs
A company issuing shares Receipts from an individual for acquiring such shares (including share application money received) More than Rs. 10 lakh in the financial year.
A company or an institution issuing debentures/bonds Receipts from an individual for acquiring such debentures or bonds. More than Rs. 10 lakh in the financial year.
Dealer of Foreign Exchange Receipt from a person for sale of foreign currency or expenses incurred in such foreign currency via a credit/debit card or traveler’s cheque or via an issue of draft or any other financial instrument More than Rs. 10 lakhs annually
Trustee or Manager of a Mutual Fund Receipt from an individual purchasing the units of such Mutual Fund More than Rs. 10 lakhs
Listed companies Share buy-back from a person More than Rs. 10 lakhs
Inspector-General or Sub-Registrar appointed under the Registration Act, 1908 Purchase/sale of immovable property by a person of More than Rs. 30 lakhs
Persons liable for an audit as per Section 44AB of the Income Tax Act Cash receipt for sale of goods/rendering of services (other than specified above) More than Rs. 2 lakhs

Due date of Submitting the Form 61A (SFT)

Statement of Financial Transactions (SFT) in Form 61A shall be submitted on or before 31st May of a financial year, immediately following the financial year in which the transaction is registered or recorded.

Example: Financial transactions registered or recorded in FY 2020-21, the due date for furnishing SFT will be 31st May 2021.

Penalty for Non-filing of Form 61A (SFT):

If Form 61A is not submitted within the due date, you may receive a notice from the prescribed tax authority asking to furnish the SFT within 30 days.

PeriodLiability
From Original due date to due date mentioned in the noticeRs. 500/- per day
From the due date mentioned in the notice to thereafterRs. 1,000/- per day

Special penalty provision for prescribed Reporting financial institutions

Providing inaccurate information in the statement by a prescribed reporting financial institution will attract a penalty of ₹ 50,000.

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FAQs

Form 61A, also known as the Statement of Financial Transactions (STF), is a record of the specified financial transaction statement required by the Income Tax Act of 1961.

Statement of Financial Transactions (SFT) in Form 61A shall be submitted on or before 31st May of a financial year, immediately following the financial year in which the transaction is registered or recorded.

If Form 61A is not submitted within the due date, you may receive a notice from the prescribed tax authority asking to furnish the SFT within 30 days.

  • » From Original due date to due date mentioned in the notice : Rs. 500/- per day
  • » From the due date mentioned in the notice to thereafter: Rs. 1,000/- per day

 

There are two sections to Form 61A:

Section A, which comprises information at the statement level, is shared by all transaction types.

Depending on the transaction type, the report level information must be reported in one of the following parts: –

» Section B (Reporting of aggregated financial transactions by the person)

» Section C (Reporting of bank accounts)

» Section D (Reporting of immovable property transactions)

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