File your Statement of Financial Transaction (SFT) before May 31, 2017

File your Statement of Financial Transaction (SFT) before May 31, 2017

Tax & Auditing

Ritul Patwa

Ritul Patwa

19 May 2017, 16:10 — 3 min read

The government has made the filing of Statement of Financial Transaction (SFT) mandatory for all persons liable for audit under Income Tax. The last date for filing SFT is 31 May, 2017.

Here are answers to some frequently asked questions regarding filing of Statement of Financial Transaction (SFT).

Q1. Who will be required to file SFT? 
All business establishments and professionals who are liable for Audit u/s 44AB of the Income Tax Act, 1961 are liable to file the Statement of Financial Transaction (SFT) w.e.f. the F. Y. 2016-17.

Q2. Which transaction is required to be reported in SFT?

Receipt of cash payment exceeding Rs 2 lakh by any person for sale of goods/services.

Q3. What is the due date for filling of SFT? 

SFT has to be filed before 31 May, 2017

Q4. Is SFT required to be filed for Nil transaction? 

If there is a NIL reportable transaction then the assessee is required to file only the ‘SFT Preliminary Response’ on the Income Tax Portal.

Q5. Are all transaction during the year required to be aggregated for reporting purposes?

The norms of aggregation contained in sub-rule 3 of Rule 114E have been amended vide CBDT’s Notification No. 91/2016 dated 6 October, 2016; clearly indicating that the said transactions did not require aggregation and the reporting requirement under SFT for this purpose is on receipt of cash payment exceeding Rs.Two Lakh for sale of goods or services per transaction.

Q6. What is the penalty for delay/non filing of SFT?

Penalty u/s 271 FA & 271 FAA of the Income Tax Act, 1961 are as below:

a) If a Notice is not received from the ITD – Rs. 100/- per day of delay
b) If notice has been issued by the ITD – Rs. 500/- per day (beginning from the day immediately following
the day on which the time specified in such notice for furnishing the return expires)
c) For providing inaccurate information in the SFT Statement – Rs. 50,000/-

Q7. How to file the SFT report in form 61 A.
Step 1 : Download the E-Filling utility of the Form 61A from the Income Tax E-Filling Portal 
Step 2 : Prepare, Generate and Validate the SFT File
Step 3 : Upload the SFT File on the Income Tax E-Filling Portal

 

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