TMI BlogProcedure 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, 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... ting person under Rule 114E 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 has now been enabled and the earlier instruction is being updated. 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 an Inspector General have the option to furnish the statement in a computer readable media, being a Compact Disc or Digital Video Disc (DVD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Every reporting person/entity is required to submit the Statement of Financial Transaction (SFT) in Form No. 61A . The prescribed schema for Form No. 61A can be downloaded from the e-filing website home page under Schema tab and a utility to prepare Form No. 61A XML file can be downloaded from the e-filing website home page under forms (other than ITR) tab. General and transaction specific guidelines for preparation of SFT in the specified format is enclosed as Annexure B and Annexure C respectively. The designated director is required to login to the e-filing website with the ITDREIN, PAN (of the designated director) and password. The form is required to be submitted using a Digital Signature Certificate of the designated director. d ) Submission of correction statement : In case the filer subsequently discovers any defect in the statement so furnished, he is required to remove the defect by submitting a correction statement. Further, the defects in the statement so furnished will be communicated separately by the prescribed authority. Sub-section (4) of Section 285BA requires the filer to rectify the defect within the time allowed and submit a correcti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more time deposits (other than a time deposit made through renewal of another 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. 4. Payments made by any person of an amount aggregating to- (i) one lakh rupees or more in cash; or (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act. 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. 12. 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. (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) 13. Cash deposits during the period 1st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gation rule needs to be applied for specified transaction types to identify transactions/persons/accounts which are reportable. Rule 114E specifies that the reporting person shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person (a) take into account all the accounts of the same nature maintained in respect of that person during the financial year; (b) aggregate all the transactions of the same nature recorded in respect of that person during the financial year; (c) attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person; The aggregation rule is applicable for all transaction types except SFT- 012 (Purchase or sale of immovable property) and SFT- 013 (Cash payment for goods and services). Reporting Format Form 61A has four parts. Part A contains statement level information is common to all transaction types. The other three parts relate to report level information which has to be reported in one of the following parts (depending on the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that person during the financial year and 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 account is maintained 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. In case of SFT- 003 (Cash deposit or withdrawals in current account), the threshold limit has to be applied separately to deposits and withdrawals in respect of transactions. After identification of reportable persons and accounts, the reporting person/entity is required to submit details of accounts which are determined as reportable. Part C3 of the form 61 A has details of the accounts that need to be reported along with the aggregate transaction values. Aggregation of transaction has the same definition as explained in person based accounting. Immovable Property Transaction Reporting (Part D) Part D shall be used for reporting of purchase or sale of immovable property (SFT- 012). The reportable immovable property transactions have to be determined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61A. Hence, unless Form 61 has been furnished, Reporting person/entity may face difficulty in filling Form 61A. Accordingly, it is to be ensured that Form 61 is furnished to the Department before Form 61A is filled. Additional Resources The reporting person/entity may refer to following resources released by the Directorate of Systems: User Manual for ITDREIN Registration and Upload User Manual to explain steps in registration of filer and upload of SFT (Form 61A) SFT Report Generation Utility Java utility to assist the filer in preparation of SFT (Form 61A) in XML file SFT Report Generation Utility User Guide User Guide to explain steps in using the Java utility to assist the filer in preparation of SFT (Form 61A) in XML file SFT Quick Reference Guide One page document with steps for preparation of SFT The developers who want to develop program to generate XML may refer to the following: Form 61A Schema XSD file which contains the schema in which SFT (Form 61A) ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SFT- 002: Purchase of pre-paid instruments in cash Transaction Code SFT- 002 Transaction Description Purchase of prepaid instruments in cash Nature and value of transaction 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). Class of person required to furnish 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). Remarks 1. For purchase of prepaid instruments 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 Details) 6. The Report Type should be specified as BA Bank/Post Office Account (A.2.7) 7. The Account Type should be specified as BC -Current Account (C.2.1) SFT- 004: Cash deposit in account other than current account Transaction Code SFT- 004 Transaction Description Cash deposits in one or more accounts (other than a current account and time deposit) of a person. Nature and value of transaction Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. Class of person required to furnish 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (6 of 1934), to hold or accept deposit from public. Remarks For payment for a credit card ina banking company or a cooperative 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) All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) 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) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as TD - Time Deposit (B.3.1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggregating 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). Class of person required to furnish A company or institution issuing bonds or debentures. Remarks For payment for acquiring bonds issued by any institution it is obligatory to quote PAN for purchase of bond of amount exceeding₹ 50,000/-(refer Rule 114B) All transactions of the same nature recorded in respect of person during the financial year should be aggregated (refer Rule114E) 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) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture recorded in respect of person during the financial year should be aggregated (refer Rule114E) 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) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as SB Shares bought back (B.3.1) 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 transaction 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 (othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded in respect of person during the financial year should be aggregated (refer Rule114E) 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) The relevant reporting format is Part A (Statement Details) and Part B (Report Details) The Report Type should be specified as AF- Aggregated Financial Transactions (A.2.7) One report would include details of one person along with transaction details The Product Type should be specified as FC - Foreign Currency (B.3.1) 012: Purchase or sale of immovable property Transaction Code SFT-012 Transaction Description Purchase or sale of any person of immovable property. Nature and value of transaction Purchase or sale by any person of immovable property for 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SFT- 014 Transaction Description Cash deposits during the period 1 st April, 2016 to 8 th November, 2016 and 9th November, 2016 to 30th December, 2016. Nature and value of transaction 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. Class of person required to furnish (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) Remarks The due date for furnishing statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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