This is in connection with the Statement of Financial Transaction (‘SFT’) to be filed by 30 June 2020
for FY 2019-20.
For keeping a watch on the high-value transactions done by taxpayers, the Income-tax Act has, per
section 285BA of the Income-tax Act, 1961 requires every reporting person / entity to furnish SFT in
Form 61A for transactions prescribed under Rule 114E of the Income-tax Rules, 1962.
Generally, the transactions which need reporting are as follows (for other than banking, mutual fund,
post office entity):
|Individuals responsible for furnishing Form 61A||Type of Transaction and limit|
|NBFC||Deposit totalling to INR 10 lakhs or more in one or more accounts of an account holder|
|A company or an institution issuing debentures or bonds||Receipt exceeding INR 10 lakhs in a year from an individual for acquiring such debentures/bonds|
|A company issuing shares||Receipt exceeding INR 10 lakhs in a year from an individual for acquiring such shares. This includes share application money received.|
|Listed companies||Share buy-back from a person for an amount aggregating to INR 10 lakhs or more|
|A Dealer of Foreign Exchange||Receipt from a person for sale of a foreign currency or expenses incurred in such foreign currency via a debit/credit card or via issue of draft or traveller’s cheque or any other financial instrument for an amount totalling INR 10 lacs or more annually|
|Persons liable for audit u/s 44AB of the Income Tax Act
Kindly note that this clause is applicable to every entity liable for Tax audit report.
|Cash receipt exceeding INR 2 lakhs by a person for sale of goods or rendering of services (other the ones specified above)|
Kindly note that an entity is required to provide its response on applicability of statement of financial transactions (mentioned above) in its preliminary reporting. Hence, each entity is advised to at least provide its response on preliminary reporting on a prudent basis. If an entity has entered into any of the above mentioned transactions, an affirmative answer needs to be provided in preliminary.