hamburger
×
Digit General Insurance Logo
Powered By Digit
mobile-img

Check Credit Score for FREE

Instant in 2 Mins. No Impact on Credit Score

desktop-img

Statement of Financial Transaction (SFT) Under Section 285BA of Income Tax Act

What Is SFT?

What Are the Specified Transactions Required to Report in SFT?

Who Is Responsible for Reporting Specified Transactions in SFT?

 

According to Section 285BA of the Income Tax Act, the Central Board of Direct Taxes (CBDT) has the authority to prescribe values against different specified financial transactions regarding specified personas dealing with such transactions. The following discusses this prescribed format of CBDT via Rule 114E related to SFT transaction in Form 26AS.

Nature of Transaction to be Reported

Monetary Threshold of Transaction

Specified People Required to Submit SFT

Cash payment of bank drafts or banker’s cheque

Aggregating to ₹ 10 lakhs or more in an FY

Banking institution or cooperative bank adhering to Banking Regulations

Cash payments of pre-paid purchase instruments issued by the Reserve Bank of India

Aggregating to ₹ 10 lakhs or more in an FY

Banking institution or cooperative bank adhering to Banking Regulations

Cash deposits in one or more current accounts of a person

Aggregating to ₹ 50 lakhs or more in an FY

Banking institution or cooperative bank adhering to Banking Regulations

Cash withdrawals from one or more current accounts of a person

Aggregating to ₹ 50 lakhs or more in an FY

Banking institution or cooperative bank adhering to Banking Regulations

Cash deposits in one (or more) accounts except for a current account and time deposits

Aggregating to ₹ 10 lakhs or more in an FY

Banking institution adhering to Banking Regulations or Post Master General of the Post Office

One or more time deposits of any individual

Aggregating to ₹ 10 lakhs or more in an FY

Post Master General of Post Office, Nidhi Company under any banking institution or cooperative bank adhering to Banking Regulations

Credit card payments

Aggregating to ₹ 1 lakh or more in cash or ₹ 10 lakhs or more by any different mode in an FY

Banking institution adhering to Banking Regulations or any other company that issues a credit card

Receipt from any individual for purchasing bonds issued by a company (except renewal)

Aggregating to ₹ 10 lakhs or more in an FY

Organisations issuing bonds or debentures

Receipt for acquiring shares from an individual issued by any company

Aggregating to ₹ 10 lakhs or more in an FY

Companies issuing shares

Buyback of shares from an individual

Aggregating to ₹ 10 lakhs or more in an FY

Listed companies purchasing their securities following section 68 of the Companies Act, 2013

Receipt from any individual for acquiring one or more Mutual Fund schemes’ units (except transferring from one scheme to another)

Aggregating to ₹ 10 lakhs or more in an FY

Individuals with authority to manage Mutual Fund related matters

Receipt from any individual for selling foreign currency through a credit or debit card or by issuing of travellers' cheque

Aggregating to ₹ 10 lakhs or more in an FY

People as authorised under Section 2(c) of the Foreign Exchange Management Act, 1999

Sale or purchase of any immovable property

As outlined in Section 50C, any transaction value of stamp duty authority for ₹ 30 lakhs or more

Inspector-General or Registrar or Sub-Registrar (Appointment done following section 3 and section 6 of the Registration Act, 1908)

Receipt of Cash payment from selling goods or services

Exceeding ₹ 2 lakhs

Individuals capable of auditing as specified under section 44AB of the Income Tax Act

What Is the Procedure to Submit SFT?

What to Do If There Is a Defect in the SFT Submitted?

What Are the Consequences of Failure to Comply With Section 285BA and Related Rules?

FAQs about SFT under Section 285BA of Income Tax Act