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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
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....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 had been enabled on efiling portal vide Notification No.1 of 2017 dated 17th January 2017 and the earlier instruction is being updated in the light of newly launched "Reporting Portal" (https://report.insight.gov.in). 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 Sub-registrar or an Inspector General have the option to furnish the statement in....
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....On successful submission, the ITDREIN is generated and the principal officer will receive a confirmation e-mail on his/her registered e-mail address and SMS at his/her registered mobile number. There will be no option to de-activate ITDREIN, once it is generated. c) Addition of Designated Director: The reporting person/entity is required to submit the details of designated director either at the time of new registration or at later stage, but before any statement is submitted on reporting portal. The designated director will receive a confirmation e-mail with login credentials for login into reporting portal (https://report.insight.gov.in) at his/her registered email address. Only, the designated director of the reporting person/entity can digitally sign and upload the Statement of Financial Transaction (SFT) and the corresponding correction statements, if any through his/her own login credentials at the reporting portal or through Generic submission Utility. d) Submission of Form No. 61A: Every reporting person/entity is required to submit the Statement of Financial Transaction (SFT) in Form No. 61A. The prescribed schema, Report Generation and Validation Utility for Form No. 61....
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....nbsp; In view of the changes mentioned above, the procedure prescribed in Notification No. 1 of 2017 dated 17th January, 2017 stands modified and this notification shall come into effect from 9th of April 2018. (Harish Kumar) Pr. DGIT (Systems), CBDT ============= Document 1 SI. No. (1) Annexure A Nature and value of transactions to be reported under Rule 114E Nature and value of transaction Class of person (reporting person) (3) 1. 2. (2) (a) 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. (b) Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007). (c) 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. Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account an....
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....year for acquiring shares (including share application money) issued by the company. Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year. 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 that Mutual Fund). 9. Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to ten lakh rupees or more during a financial year. A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013). A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. Authorised person as referred to in clause ....
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.... from the Reporting portal under "Resources" tab. Transaction Types Reporting person/entity is required to furnish separate Form 61 A for each transaction type. The transaction types under SFT have been categorised as under: SFT-001: Purchase of bank drafts or pay orders in cash • SFT-002: Purchase of pre-paid instruments in cash . SFT-003: Cash deposit in current account • • • • SFT-004: Cash deposit in account other than current account 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-012: Purchase or sale of immovable property SFT- 013: Cash payment for goods and services SFT-014: Cash deposits during specified period (9th Nov to 30th Dec, 2016). Identification of transactions to be reported The first step in preparation of Statement of Financial Transactions (SFT) is to identify transactions/persons/accounts which are reportable under Rule 114E. In the second step, the reporting person/entity is required to submit detail....
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.... name of more than one person, the reporting person/entity should attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons. The reporting person/entity is required to submit details of persons and transactions which are determined as reportable. The reporting format also enables reporting person/entity to furnish information relating to each individual product within a product type. E.g: if a person has multiple credit cards and the aggregate value of the transactions in all credit cards exceeds the threshold value, the aggregate transaction value will be reported in section B3 of form 61 A and the transactions pertaining to individual credit cards can be reported in section B4 of form 61 A. Account Based Reporting (Part C) Part C shall be used for account based reporting which is relevant to following transactions: SFT-003: Cash deposit in current account • SFT-004: Cash deposit in account other than current account • SFT-014: Cash deposits during specified period (9th Nov to 30th Dec, 2016). For determining reportable persons and accounts, the reporting person/entity is required to take into acc....
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.... should be mentioned in the element ‘Original Statement ID'. In case the Statement is new and unrelated to any previous Statement, '0' will be mentioned in the element ‘Original Statement ID'. Report Serial Number The Report Serial Number uniquely represents a report within a Statement. The Report Serial Number should be unique within the Statement. This number along with Statement ID will uniquely identify any report received by ITD. In case of correction, the complete report has to be resubmitted. The Report Serial Number of the original report that has to be replaced or deleted should be mentioned in the element ‘Original Report Serial Number'. This number along with Original Statement ID will uniquely identify the report which is being corrected. In case there is no correction of any report, ‘O' will be mentioned in the element 'Original Report Serial Number'. Form 61 Acknowledgement No. If reporting person/entity has received declarations in Form 60 in respect of transactions listed in Rule 114E, Form 61 is required to be furnished to ITD. As mentioned in Chapter I, on successful loading of Form 61 (containing the particulars of Form 60)....
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....emarks 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). 1. 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 in cash for an amount exceeding fifty thousand rupees during any one day (refer Rule 114B) 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) 3. 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) 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) 5. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) 6. One report would include details of one person along w....
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....anking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act). 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 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) 3. The threshold limit should be applied separately to deposits and withdrawals (refer Rule114E) 4. Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account alongwith details of account and related persons 5. The relevant reporting format is Part A (Statement Details) and Part C (Report Detail....
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....nother time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person. (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, 1934 (6 of 1934), to hold or accept deposit from public. 1. For payment for a credit card 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 any amount(refer Rule 114B) 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) 3. The entire value of the transaction or the aggregated val....
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....rchase of debentures year for acquiring bonds or debentures issued by the company or institution. Nature and value of Receipt from any person of an amount aggregating to ten transaction 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 A company or institution issuing bonds or debentures. required to furnish Remarks 1. For payment for acquiring bonds issued by any institution it is obligatory to quote PAN for purchase of bond of amount exceeding Rs 50,000/-(refer Rule 114B) 2. All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) 3. 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) 4. The relevant reporting format is Part A (Statement Details) and Part B (Report Details) 5. The Report Type should be specified as AF- Aggregated Financia....
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....is Part A (Statement Details) and Part B (Report Details) 4. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) 5. One report would include details of one person along with transaction details 6. The Product Type should be specified as SB Shares bought back (B.3.1) 20 SFT-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 Receipt from any person of an amount aggregating to ten transaction Class of person required to furnish Remarks 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 that Mutual Fund). A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf. 1. For payment for acquiring mutual funds of any financial institution it is obligatory to quote PAN for purchase of mutual fund of amount exceeding Rs 1,00,000/-(refer Rule 114B) ....
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....f any person of immovable property. Nature and value of Purchase or sale by any person of immovable property for transaction Class of person required to furnish Remarks 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. Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. 1. For payment for acquiring any immovable property it is obligatory to quote PAN for purchase of amount exceeding Rs 10,00,000/-(refer Rule 114B) 2. The relevant reporting format is Part A (Statement Details) and Part D (Report Details) 3. The Report Type should be specified as IM Immovable Property Transactions (A.2.7) - 4. One report would include details of one property along with seller and purchaser details 23 SFT-013: Cash payment for goods and services Transaction Code Transaction SFT-014 Cash payments for goods and services. Description Nature and value of Receipt of cash payment exceeding two lakh rupees for transaction Class of person required to furnish Remarks sale, by any person,....
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....es during the period 09th November, 2016 to 30th December, 2016." (refer Rule 114B) 3. 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) 4. Once the accounts to be reported are identified by the aggregation rule, one report would include details of one account. 5. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) 6. The Report Type should be specified as BA Account (A.2.7) - Bank/Post Office 7. The Account Type should be specified as BS (Savings Account), BC (Current Account) or ZZ (Other Account) 25 Annexure D Modification / Changes in schema / data structure of Form No. 61A # Field 1. Person Type (B.2.2)/ (C.4.3)/ (D.3.4) 2. Statement Type (A.2.1) 3. Financial Transaction Details (B.4) Existing Values IN Individual - SP-Sole Proprietorship PF- Partnership Firm HF - HUF CR Private Limited Company CB Public Li....