Statement of Financial Transaction (SFT) for Mutual Fund Transactions - Frequency for submitting the statement and Minimum period of holding for different assets classes, modified - Corrigendum to Notification No. 4 of 2021 - Income Tax

Corrigendum to Notification No. 4 of 2021 Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems) Corrigendum to Notification No. 4 of 2021 New Delhi, 15/11/2023 Format, Procedure and Guidelines for submission of Statement of Financial Transaction (SFT) for Mutual Fund Transactions by Registrar Share Transfer Agent The format, procedure and guidelines for submission for SFT data for mutual fund transactions by registrar and share transfer Agents (RTA) were notified vide Notification no. 4 of 2021 dated 30th April 2021 as mandated by Section 285BA of the Income Tax Act and Rule 114E sub-rule 5A . The notification lists various files, file formats, data types for different data fields that need to be reported, and various DQ rules that should be validated by RTA before submission of the data. 2. Subsequently, discussions were held with the representatives of Depositories ,RTAs and Exchanges. Accordingly, the following changes are made to the said notification. 3. The S.No. 6 of the existing notification mentions the following 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 30 th June, 31 st September, 31 st December and 31 st March shall be furnished on or before 25th of July, October, January and April respectively. This should be read as following: With effect from 1st April 2023 the statement of financial transactions data will be submitted on half yearly basis instead of existing quarterly basis i.e. data relating to 1st half of the Financial Year ending 30th September and remaining half of the Financial Year ending on 31st March shall be furnished on or before 31st of October and 30th of April respectively. 4. In Annexure A (Guidelines for Preparation of Statement of Financial Transactions (SFT), S.No. 7 mentions the specified minimum period of holding for different asset class is as under: Security Class Code Security Class Description Minimum Period of Holding EMF Unit of Equity Oriented Mutual Fund 12 months UTI Unit of UTI 12 months OTU Other Units 36 months This should be read as : Security Class Code Security Class Description Minimum Period of Holding Remarks EMF Unit of Equity Oriented Mutual Fund 12 months - UTI Unit of UTI 12 months Where more than 35% of its total proceeds are invested in the equity shares of domestic companies, this information should be provided. Note : Where not more than 35% of its total proceeds are invested in the equity shares of domestic companies, (Specified Mutual Fund), it will always be classified as short-term capital asset ( Applicable from 1st April 2023 ) OTU Other Units 36 months Where more than 35% of its total proceeds are invested in the equity shares of domestic companies, this information should be provided. Note : Where not more than 35% of its total proceeds are invested in the equity shares of domestic companies, (Specified Mutual Fund), it will always be classified as short-term capital asset (Applicable from 1st April 2023) (AMITAV) DGIT(Systems), Delhi