9911796707
TMI BlogStatement of Financial Transactions (SFT) for Depository Transactions - Method for computation of "The Estimated Sale Consideration for the debit transaction" and Frequency for submitting the statement of financial transactions data and Minimum Period of Holding of assets, modified.X X X X Extracts X X X X X X X X Extracts X X X X ..... for Depository Transactions. The format, procedure, and guidelines for submission of information relating to capital gains on transfer of listed securities or units of mutual funds by Depository Institutions was notified vide notification no. 3 of 2021 dated 30th April 2021 as per the mandate of Section 285BA of the Income Tax Act, 1961 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 Depository Institutions before submission of the data. 2. Subsequently, discussions were held with representatives of Depository Institutions. Accordingly, following changes are made to the said notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be able to modify the sales consideration before filing the return. 5. In annexure A (Guidelines for Preparation of Statement of Financial Transactions (SET)) of the existing notification, S.No.5 mentions the following: Security Class Code Security Class Description Minimum Period of Holding LES Listed Equity Share 12 months LPS Listed Preference Share 12 months LDB Listed Debenture 12 months ZCB Zero Coupon Bond 12 months CIB Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ) UBT Unit of Business Trust 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n through other than Exchange. The taxpayer will be able to modify the cost of acquisition before filing the return. This should be read as following: For every debit transaction, the corresponding credit transaction should be identified using First in First Out (FIFO) method. The estimated cost of acquisition for the credit should be determined on weighted average price of the asset i.e taking into actual value of the transactions, if purchase was made after 1st February 2018 or End of the day price, if purchase was made before 1st February 2018 , available with the depository. The estimated cost of acquisition is to be taken as NIL for OFF Market purchase, Corporate Action or for any transaction through other than Exchange. IP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. Sale Consideration Y Decimal(18,2) Estimated Sale Consideration at Weighted Average price (taking into account the actual value of the transactions) 18. COA Y Decimal (18,2) Estimated Cost of acquisition without indexation Refer Guidelines. 8. In annexure D (D .3- Depository Transaction Summary (DEP_TRN_Summ.TXT)) of the existing notification, a new data field 24 is added for flag indication if the purchase of the security was before 1st February 2018 or after # Field Mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
