Filling of Statement of Financial Transaction (SFT) for Financial Year 2017-18 – 31st May 2018 Timeline

Section 285BA of Income Tax Act, 1961 (‘Act’) read with Rule 114E of Income Tax Rules, 1962 (‘Rules’) requires certain persons/entities to furnish a return/ statement of specified financial transactions (‘SFT’) as mentioned in such Rule 114E.

Rule 114E specifies 13 numbers of transactions, information in respect of which is to be filed by the persons stated in such Rule.

Applicability- The said transactions inter alia includes “receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature” as mentioned at S.No 11. Reporting of such transaction is to be done by every person/entities who are liable for audit u/s 44AB of the Act.

Serial number 1,2,3,4,12 & 13 is related to filing of SFT by a Banking company or co-operative bank and 8, 9, 10 is related to Trustee of Mutual fund , foreign exchange dealer, Registrar or Sub registrar respectively.

Serial no. 5, 6, 7 and 11 of the Rule 114E as given below, are applicable in selected cases on companies and Any person who is liable for audit under section 44AB of the Act.

Serial no. 12 and 13 relate to demonetization and are not applicable now for FY 2017-18.

For details, please see Rule 114E:  https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962.aspx

Sl. No. Nature and value of transaction Class of person (reporting person)
(1) (2) (3)
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 amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company. A company issuing shares.
7. 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. A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013).
11. Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.) Any person who is liable for audit under section 44AB of the Act.

SFT Return- The said return/statement is to be filed in Form 61A. The due date for filing of such return for FY 2017-18 is 31st May, 2018.

Penalty- Non-compliance of above provisions attract penalty under section 271FA of Rs.500/- per day for which failure continues and under section 271FAA of Rs.50,000/- for inaccurate information in the statement.

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