TaxTMI 
TaxTMI 
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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....4 E is enclosed as Annexure A. 2. As per sub 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 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....
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....ting person/entity along with details of Principal Officer mandatorily. 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....
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....ed information/documents are available promptly to the competent authorities. 7. In view of the changes mentioned above, the procedure prescribed in Notification No. 1 of 2017 dated 17^th January, 2017 stands modified and this notification shall come into effect from 9^th 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 o....
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....itution referred to in section 51 of that Act) or any other company or institution issuing credit card. A company or institution issuing bonds or debentures. Receipt from any person of an amount A company issuing shares. aggregating to ten lakh rupees or more in a financial 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 y....
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....ation 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, Report Generation and Validation Utility for Form No. 61A can be downloaded 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 ....
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....-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 aggregation rule). In a case, where the transaction is recorded in the 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 al....
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....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, statement ID of the original Statement which is being corrected 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 ....
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.... file which contains the schema in which SFT (Form 61A) needs to be prepared and uploaded/submitted Toolkit to assist the filer in understanding the Reporting portal and guide for preparation of statements for different forms. 11 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 Transaction Description SFT-001 Purchase of bank drafts or pay orders or banker's cheque in cash Nature and value of Payment made in cash for purchase of bank drafts or pay orders transaction or banker's cheque of an amount aggregating to ten lakh rupees or more in a financial year. Class of person required to furnish Remarks 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 fr....
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....d 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 with transaction details 7. The Product Type should be specified as Pl Prepaid Instrument (B.3.1) 13 SFT-003: Cash deposit or withdrawals in current account Transaction Code Transaction Description Nature and value of transaction Class of person required to furnish Remarks SFT-003 Cash deposits or cash withdrawals (including through bearer's cheque) in current account. 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. 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....
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....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. 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 4. The relevant reporting format is Part A (Statement Details) and Part C (Report Details) 5. The Report Type should be specified as BA Bank/Post Office Account (A.2.7) 6. The Account Type should be specified as BS - Savings Account or ZZ - Other Account (C.2.1) 15 SFT-005: Time deposit Transaction Code Transaction Description Nature and value of transaction Class of person required to furnish Remarks SFT-005 Time deposits (other than a time deposit made through renewal of another time deposit....
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....hat 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. 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 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. O....
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....ecorded 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 with transaction details 7. The Product Type should be specified as Sl Shares issued (B.3.1) - 19 SFT-009: Buy back of shares Transaction Code Transaction Description SFT-009 Buy back of shares Nature and value of Buy back of shares from any person (other than the shares transaction Class of person required to furnish Remarks bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year. A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companie....
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....pecified as MF Mutual Fund (B.3.1) ང་ 21 SFT-011: Purchase of foreign currency Transaction Code Transaction SFT-011 Purchase of foreign currency Description Nature and value of Receipt from any person for sale of foreign currency transaction Class of person required to furnish Remarks 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. Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999). 1. For payment for acquiring foreign exchange from any institution it is obligatory to quote PAN for purchase of foreign currency in cash for 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 ....
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....art A (Statement Details) and Part B (Report Details) 4. The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7). 5. The reporting format aggregates the transactions of one person in one report 6. One report would include details of one person along with transaction details 7. The Product Type should be specified as ZZ Others (B.3.1) - 14 24 SFT-014: Cash deposits during specified period Transaction Code Transaction Description Nature and value of transaction Class of person required to furnish Remarks SFT-014 Cash deposits during the period 09th November, 2016 to 30th December, 2016. Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to_(i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or (ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person. Cash deposits during the period 1st April, 2016 to 9th November, 2016 in respect of accounts that are reportable. i) A banking company or a co-operative bank to which the Banking Regu....