Procedure For Registration and Submission of SFT as per Income Tax Act 1961

Procedure 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, 1962.

In connection to the SFT, Section 285BA Compliance under IT Act 1961 & Reporting Cash Transactions under Rule 114E of Income Tax Rules, 1962. Section 285BA of the Income-tax Act, 1961 (the Act) requires specified reporting persons to furnish statement of financial transaction. Rule 114E of the Income Tax Rules, 1962 (the Rules) states that the statement of financial transaction is required to be furnished in Form No. 61A. The procedure for registration for statement of financial transactions was specified in Notification No. 13/2016, dated 30 December 2016.

The Rules also provides that the statement of financial transaction shall be furnished through online under the digital signature. 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), along with verification in Form-V on paper. The statement of financial transactions shall be furnished on or before the 31 May, immediately following the financial year in which the transaction is registered or recorded. The statement of financial transaction in respect of cash deposits during the period 1 April 2016 to 8 November 2016 and 9 November 2016 to 30 December 2016 shall be furnished on or before the 31 January 2017.

The Central Board of Direct Taxes (CBDT) has issued a Notification No. 1/2017, dated 17 January 2017 stating that the functionality for submission of statement of financial transactions has been enabled and the earlier instruction is being updated. It prescribes procedures for online registration and submission of statement of financial transactions as per Section 285BA of the Act. It also updated nature and value of transactions to be reported under Rule 114E of the Rules. Further, it provides general and specific guidelines for the preparation of statement financial transactions.

Click here for CBDT Notification

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/Form_No.61A_System%20Notification_3_of_2018.pdf

Reference link for Class of Value & Transactions and Class of Person –

http://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007545.htm

Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc. before acting on the basis of the above write.