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TMI BlogProcedure for registration and submission of statement of financial transactions (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... b rule (6)(a) of Rule 114E, every reporting person/entity shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of the Designated Director and the Principal Officer and obtain a registration number.The procedure for registration for statement of financial transactions (SFT) was specified in Notification No. 13 dated 30th December, 2016. The functionality for submission of statement of financial transactions has now been enabled and the earlier instruction is being updated. 3. As per sub rule (4)(a) of Rule 114E, the statement of financial transactions shall be furnished through online transmission of electronic data to a server designated for this purpose under the digital signature of the person specified in sub-rule (7) and in accordance with the data structure specified in this regard by the Principal Director General of Income-tax (Systems). The Post Master General or a Registrar or an Inspector General have the option to furnish the statement in a computer readable media, being a Compact Disc or Digital Video Disc (DVD), alongwith verification in Form-V on paper. The statement of financial transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed schema for Form No. 61A can be downloaded from the e-filing website home page under "Schema" tab and a utility to prepare Form No. 61A XML file can be downloaded from the e-filing website home page under forms (other than ITR) tab. General and transaction specific guidelines for preparation of SFT in the specified format is enclosed as Annexure B and Annexure C respectively. The designated director is required to login to the e-filing website with the ITDREIN, PAN (of the designated director) and password. The form is required to be submitted using a Digital Signature Certificate of the designated director. d) Submission of correction statement : In case the filer subsequently discovers any defect in the statement so furnished, he is required to remove the defect by submitting a correction statement. Further, the defects in the statement so furnished will be communicated separately by the prescribed authority. Sub-section (4) of Section 285BA requires the filer to rectify the defect within the time allowed and submit a correction statement. e) Security, archival and retrieval policies: The reporting person/entity is required to document and implement appropriate informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of the Indian Post Office Act, 1898 (6 of 1898); (iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (6 of 1934), to hold or accept deposit from public. 4. Payments made by any person of an amount aggregating to- (i) one lakh rupees or more in cash; or (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card. 5. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). A company or institution issuing bonds or debentures. 6. Receipt from any person of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898) 13. Cash deposits during the period 1st April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12. (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898)."; Annexure B General Guidelines for Preparation of Statement of Financial Transactions (SFT) Section 285BA of the Income Tax requires specified reporting persons to furnish statement of financial transaction. Rule 114E of the Income Tax Rules, 1962 specifies that the statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in Form No. 61A. The prescribed schema for Form 61A can be downloaded from the e-filing website home page under "Schema & Validation Rules" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information is common to all transaction types. The other three parts relate to report level information which has to be reported in one of the following parts (depending on the transaction type): * Part B (Person Based Reporting) * Part C (Account Based Reporting) * Part D (Immovable Property Transaction Reporting) The applicability of the reporting format is discussed in following paragraphs. Person Based Reporting (Part B) Part B shall be used for person based reporting which is relevant to following transactions: * SFT- 001: Purchase of bank drafts or pay orders in cash * SFT- 002: Purchase of pre-paid instruments in cash * SFT- 005: Time deposit * SFT- 006: Payment for credit card * SFT- 007: Purchase of debentures * SFT- 008: Purchase of shares * SFT- 009: Buy back of shares * SFT- 010: Purchase of mutual fund units * SFT- 011: Purchase of foreign currency * SFT- 013: Cash payment for goods and services For determining reportable persons and transactions, the reporting person/entity is required to aggregate all the transactions of the same nature recorded in respect of the person during the financial year (refer to the applicability of aggregat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be used for reporting of purchase or sale of immovable property (SFT- 012). The reportable immovable property transactions have to be determined by applying the threshold limit. The reporting person/entity is required to submit specified details of immovable property transactions which are determined as reportable. Statement Type One Statement can contain only one type of Statement. Permissible values for type of Statement are: * NB - New Statement containing new information * CB - Correction Statement containing corrections for previously submitted information * ND - No Data to report Statement Number and Statement ID Statement Number is a free text field capturing the sender's unique identifying number (created by the sender) that identifies the particular Statement being sent. The identifier allows both the sender and receiver to identify the specific Statement later if questions or corrections arise. After successful submission of the Statement to ITD, a new unique Statement ID will be allotted for future reference. The reporting person/entity should maintain the linkage between the Statement Number and Statement ID. In case the correction statement is filed, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the filer in understanding the Form 61A Schema Annexure C Transaction Specific Guidelines for Preparation of Statement of Financial Transactions (SFT) Transaction specific guidelines for preparation of Statement of Financial Transactions (SFT) are given in following paragraphs. SFT- 001: Purchase of bank drafts or pay orders in cash Transaction Code SFT- 001 Transaction Description Purchase of bank drafts or pay orders or banker's cheque in cash Nature and value of transaction Payment made in cash for purchase of bank drafts or pay orders or banker's cheque of an amount aggregating to ten lakh rupees or more in a financial year. Class of person required to furnish A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). Remarks For purchase of bank drafts or pay orders or banker's cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne person along with transaction details 7. The Product Type should be specified as PI -Prepaid Instrument (B.3.1) SFT- 003: Cash deposit or withdrawals in current account Transaction Code SFT- 003 Transaction Description Cash deposits or cash withdrawals (including through bearer's cheque) in current account. Nature and value of transaction Cash deposits or cash withdrawals (including through bearer's cheque) aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person. Class of person required to furnish A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). Remarks 1. For deposits in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) 2. All the accounts of the same nature maintained in respect of that person durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant reporting format is Part A (Statement Details) and Part C (Report Details) The Report Type should be specified as BA - Bank/Post Office Account (A.2.7) The Account Type should be specified as BS - Savings Account or ZZ - Other Account (C.2.1) 005: Time deposit Transaction Code SFT- 005 Transaction Description Time deposits (other than a time deposit made through renewal of another time deposit) Nature and value of transaction One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person. Class of person required to furnish (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); (iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction is recorded in the name of more than one person (refer Rule114E) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as CC- Credit Card (B.3.1) 007: Purchase of debentures Transaction Code SFT-007 Transaction Description Purchase of debentures year for acquiring bonds or debentures issued by the company or institution. Nature and value of transaction Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company). Class of person required to furnish A company or institution issuing bonds or debentures. Remarks For payment for acquiring bonds issued by any institution it is obligatory to quote PAN for purchase of bond of amount exceeding₹ 50,000/-(refer Rule 114B) All transactions of the same nature r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of 2013). Remarks All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) The entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the transaction is recorded in the name of more than one person (refer Rule114E) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as SB - Shares bought back (B.3.1) 010: Purchase of mutual fund units Transaction Code SFT-010 Transaction Description Purchase of mutual fund units in a financial year for acquiring units of one or more schemes of a Mutual Fund Nature and value of transaction Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as FC - Foreign Currency (B.3.1) 012: Purchase or sale of immovable property Transaction Code SFT-012 Transaction Description Purchase or sale of any person of immovable property. Nature and value of transaction Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more. Class of person required to furnish Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. Remarks For payment for acquiring any immovable propertyit is obligatory to quote PAN for purchase of amount exceeding₹ 10,00,000/-(refer Rule 114B) The relevant reporting format is Part A (Statement Details) and Part D (Report Details) The Report Type should be specified as IM - Immovable Property Transactions (A.2.7) One report would include details of one property along with seller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. For deposits in a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) it is obligatory to quote PAN for payment in cash for an amount exceeding fifty thousand rupees during any one day or aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016." (refer Rule 114B) All the accounts of the same nature maintained in respect of that person during the financial year should be considered and the entire value of the transaction or the aggregated value of all the transactions should be attributed to all the persons, in a case where the account is maintained in the name of more than one person. (refer Rule114E) Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) The Report Type should be specified as BA - Bank/Post Office Account(A.2.7) The Account Type should be specified as BS (Savings Account), BC (Current Account) or ZZ (Other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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