SFT is a report which includes particular financial transactions that specific individuals need to submit to the income tax authority or such other specified authority or agency.
A statement of financial transaction is a report of particular financial transactions by persons including prescribed reporting financial institutions. Such specified persons who maintain such specified financial transactions are under a mandate to submit SFT to the income tax department. SFT consists of particular high-value transactions financially undertaken by citizens that the Government proposes to track, with an intent to reduce black money and increase the tax base in India.
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.
|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|
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.
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|
Providing inaccurate information in the statement by a prescribed reporting financial institution will attract a penalty of ₹ 50,000.
Yes, irrespective of a single transaction or multiple taxable transactions, every foreigner/ non-resident will mandatorily have to take the GST registration.
Advance payment of GST liability is like a secured deposit with the government which can be utilised to pay the actual tax liability. Every non-resident person seeking GST registration in India has to compulsorily make an advance payment of expected GST liability which will be adjusted with the actual tax liability at the end of the registration period. Any excess tax will be refunded back.
There are 4 GST types namely-
ITC stands for Input Tax Credit. It is basically a credit that you can use to set off your GST liability. Whenever you purchase goods or services for your business from a GST registered person you are required to pay GST on the purchase to the supplier. You can claim the benefit of this GST payment by offsetting it against your GST liability on sales.
No, a person registered as Non-resident taxable person cannot claim Input tax credit on his purchases.
Yes, GST law grants you the freedom to opt for a GST Registration which is of lesser period but it restricts the maximum period to 90 days. So, at the time of registering you can specify the number of days for which you require the GST registration certificate.
You can extend your GST Registration validity period by a maximum of 90 days.
Yes, GST act mandates to make an additional advance payment of GST liability at the time of sorting for an extension.
Final return has to be filed in GSTR Form 5 within 20 days from the end of the month or within 7 days from the end of the registration period, whichever is earlier.
Online registration Process – No need to visit our office
Completely Online Document Submission & Application Tracking
Error free Filing of Application for GST Registration
Secure GST Identification Number
Dedicated manager to process your GST registration end to end
Completely Online CA Assisted GST Filing for all your GST needs