Statement of Financial Transaction or Reportable Account (SFTRA) - Section 285BA - Income Tax - Ready Reckoner - Income Tax

Statement of Financial Transaction or Reportable Account (SFTRA) Obligation to furnish Statement of Financial Transaction or Reportable Account (SFTRA) - Section 285BA of Income Tax Act,1961 Read with Rule 114E 114G of Income Tax Rules, 1962 ] 1. Any person, being- An assessee; or The prescribed person in the case of an office of Government; or A local authority or other public body or association; or The Registrar appointed under the Registration Act, 1908; or The Registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or The Post Master; or The collector referred to in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or The recognized stock exchange; or An officer of the Reserve Bank of India; or A depository referred to in the Depositories Act, 1996; or A prescribed reporting financial institution, Who is responsible for registering, or, maintaining books of account or other document containing a record of any specified financial transaction or any reportable account as may be prescribed under any law for the time being in force, shall furnish a statement in respect of such specified financial transaction or such reportable account which is registered or recorded or maintained by him and information relating to which is relevant and required for the purposes of this Act, to the income-tax authority or such other authority or agency as may be prescribed. 2. Period for which such statement is to be filed, time limit and form of filing the same: The statement of financial transaction shall be furnished electronically (under digital signature) in Form No. 61A to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation). However a Post Master General or a Registrar or an Inspector General may furnish Form No. 61A in a computer readable media being a Compact Disc or Digital Video Disc (DVD), along with the verification in Form-V on paper. [ Section 285BA(1) read with Rule 114E(1) ] The SFTR shall be furnished by every person in respect of all the transactions of the nature and value specified list in TABLE of rule 114E(2) in accordance with the provisions of rule 114E(3), which are registered or recorded by him on or after the 1st day of April, 2016. [ Rule 114E(2) ] Time Limit for furnishing Statement The statement of financial transactions referred to rule 144E(1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded. ​​​​ Provided the statement of financial transaction in respect of the transactions listed at serial number (12) and serial number (13) in the Table under rule 114E(2), shall be furnished on or before the 31st day of January, 2017. [ Rule 144E(5) of Income Tax Rules] The Information relating to capital gain on transfer of Listing securities or units of Mutual Fund The statement of financial transactions relating to Financial Year 2020-21 shall be furnished on or before the 31st May 2021. Thereafter, the statement of financial transactions relating to the quarter ending 30th June, 31st September, 31st December and 31st March shall be furnished on or before 25th of July, October, January and April respectively. [ Notification No. 4 of 2021 Dated 30.04.2021 ] 3. Meaning of specified financial transactions [ Section 285BA(3) ] For the purposes of section 285BA(1), specified financial transaction means any- Transaction of purchase, sale or exchange of goods or property or right or interest in a property; or Transaction for rendering any service; or Transaction under a works contract; or Transaction by way of an investment made or an expenditure incurred; or Transaction for taking or accepting any loan or deposit. Which may be prescribed: Provided that the Board may prescribe different values for different transactions in respect of different persons having regard to the nature of such transactions: 4. Person to rectify the statement if found defective by Income-Tax Authority [ Section 285BA(4) ] Where the prescribed income-tax authority considers that the statement furnished under Section 285BA(1) is defective, he may intimate the defect to the person who has furnished such statement and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said income-tax authority may, in his discretion, allow; and if the defect is not rectified within the said period of 30 days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement. 5. Issue notice to file statement [ Section 285BA(5) ] Where a person who is required to furnish a statement under Section 285BA(1) has not furnished the same within the specified time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such statement within a period not exceeding thirty days from the date of service of such notice and he shall furnish the statement within the time specified in the notice. 6. Person to correct the information on discovery of inaccuracy in the information provided in the statement [ Section 285BA(6) ] If any person, having furnished a statement under Section 285BA(1), or in pursuance of a notice issued under Section 285BA(5), comes to know or discovers any inaccuracy in the information provided in the statement, he shall within a period of ten days inform the income-tax authority or other authority or agency referred to in Section 285BA(1), the inaccuracy in such statement and furnish the correct information in such manner as may be prescribed. 7. The Central Government empowered to make rules in this regard [ Section 285BA(7) ] The Central Government may, by rules made under this section, specify- The persons referred to in Section 285BA(1) to be registered with the prescribed income-tax authority; The nature of information and the manner in which such information shall be maintained by the persons referred to in clause (a); and The due diligence to be carried out by the persons for the purpose of identification of any reportable account referred to in Section 285BA(1) . Important Other Point Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent [ Notification No. 4 of 2021 Dated 30.04.2021 ] Depository Transactions [ Notification No. 3 of 2021 Dated 30.04.2021 ] Interest income [ Notification No. 2 of 2021 Dated 20.04.2021 ] Dividend income [ Notification No. 01 of 2021 Dated 20.04.2021 ] Procedure for registration and submission of Statement of Reportable Account as per section 285BA of Income-tax Act, 1961 Read with Rule 114G of Income-tax Rules, 1962. [ Notification No. 4 of 2018 Dated 05.04.2018 ]; Read with Rule 114E of Income-tax Rules, 1962. [ Notification No. 03 of 2018 Dated 05.04.2018 ] Specifies the limit for deposit of Cash without PAN and Issues Direction to banks for Submission of information for deposit of cash in excess of specified limit for the period from 9.11.2016 to 30.12.2016. [ Notification No. 104/2016 Dated 15.11.2016 ] Jurisdiction of Income tax authority for the purpose of section 285BA. [ Notification No. 19/2019 Dated 13.03.2019 ] Consequences of Failure or inaccurate information furnished in statement of SFTRA Penalty for failure to furnish Statement of Financial Transaction or Reportable Account - Section 271FA Penalty for furnishing inaccurate Statement of Financial Transaction or Reportable Account - Section 271FAA