The purpose of the statement is to enable the income tax officers to cross-verify the information in Income Tax Returns / TDS Returns filed by Assessees.
Eg: Details are collected from Bank as to who deposited amount exceeding Rs. 10 lakhs in cash in savings bank account.

Sec. 285BA requires certain specified persons to file SFT. SFT or Reportable Accounts shall be filed in Form 61A on or before 31st May of the year immediately following the financial year in which the transaction is registered or recorded.

Sl. No Nature of transaction to be reported Monetary threshold of transaction Specified person required to submit SFT
1 Cash payment purchase of bank drafts or pay orders or banker’s cheque Aggregating to Rs 10 lakh or more in a FY A banking company or Co-operative bank to which Banking Regulation applies
Cash payments for purchase of pre-paid instruments issued by Reserve Bank of India Aggregating to Rs 10 lakh or more during the FY  
Cash deposits in one or more current account of a person Aggregating to Rs 50 lakh  or more in a FY  
Cash withdrawals from one or more current account of a person Aggregating to Rs 50 lakh  or more in a FY  
2 Cash deposits in one or more accounts other than a current account and time deposit of a person Aggregating to Rs 10 lakh or more in a FY A banking company or Co-operative bank to which Banking Regulation applies

or

Post-Master General of post office

 

Sl. No Nature of transaction to be reported Monetary threshold of transaction Specified person required to submit SFT
3 One or more time deposits (other than renewed time deposit of another time deposit) of a person Aggregating to Rs 10 lakh or more in a FY (i) A banking company or Co-operative bank to which Banking Regulation applies
    (ii) Post-Master General of post office
    (iii) Nidhi Company as per Section 406 of the Companies Act, 2013
    (iv) NBFC – Non banking financial company holding certificate of registration under RBI Act to hold or accept deposit from public
4 Credit card payments made by any person either in cash or by any other mode in a FY. Aggregating to Rs 1 lakh or more in cash or Rs 10 lakh or more by any other mode in a FY A banking company or Co-operative bank to which Banking Regulation applies or
any other company or institution issuing credit card
5 Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than renewal). Aggregating to Rs 10 lakh or more in a FY A company or institution issuing bonds or debentures
6 Receipt from any person for acquiring shares (including share application money) issued by the company. Aggregating to Rs 10 lakh  or more in a FY A company issuing shares
7 Buyback of shares from any person (other than the shares bought in the open market). Aggregating to Rs 10 lakh  or more in a FY Listed company purchasing its own securities under section 68 of the Companies Act, 2013

 

Sl. No Nature of transaction to be reported Monetary threshold of transaction Specified person required to submit SFT
8 Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than transfer from one scheme to another). Aggregating to Rs 10 lakh or more in a FY A trustee of a Mutual Fund or any such other person authorized to manage the affairs of the Mutual Fund
9 Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument. Aggregating to Rs 10 lakh or more during a FY Authorized person as referred to in Section 2(c) of the Foreign Exchange Management Act, 1999
10 Purchase or sale of immovable property. Transaction value or valuation of stamp duty authority referred in Section 50C for an amount of Rs 30 lakhs or more. Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.
11 Cash receipt for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10). Exceeding Rs 2 lakh Any person who is liable for audit under section 44AB of the Act

 

Sl. No Nature of transaction to be reported Monetary threshold of transaction Specified person required to submit SFT
12 Cash deposits during the period 09th November, 2016 to 30th December, 2016. Aggregating to Rs 12,50,000 or more in one or more current account of a person or Rs 2,50,000 or more in one or more account (other than current account) of a person A banking company or Co-operative bank to which Banking Regulation applies

or

Post Master General of post office
13 Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12.   A banking company or Co-operative bank to which Banking Regulation applies

or

Post Master General of post office

The specified person required to submit SFT shall determine the threshold amount for reporting in respect of any person involved in the specified transactions.

Aggregation:

  1. Take into account all the accounts of the same nature as specified in column (2) of the above table maintained in respect of that person during the financial year.
  2. Aggregate all the transactions of the same nature as specified in column (2) of the above table recorded in respect of that person during the financial year.
  3. 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.

Consequences of Non-filing SFT or Reportable accounts: (Liable for penalty under section 271FA)

In case of non-furnishing of SFT within due date, the prescribed income-tax authority may serve notice upon such person requiring him to furnish SFT within a period not exceeding 30 days from the date of service of such notice and he shall furnish the statement within the time specified in the notice.

If reporting person does not furnish the SFT within original due date, the reporting person shall be liable for penalty of Rs. 500 per day of default till the period of notice. Further, if no report is furnished even within the extended due date specified in the notice served upon the person, penalty of Rs 1000 per day will be levied from the day immediately following the day on which the specified time in the notice expires.

Consequences of filing incorrect information in SFT or Reportable Accounts: (Liable for penalty under section 271FAA)

Penalty of Rs 50,000 will be levied on prescribed reporting financial institution if it provides inaccurate information in the statement where:

  1. Inaccuracy is due to a failure to comply with the prescribed due diligence requirement or is deliberate on the part of that person or
  2. The person knows of the inaccuracy at the time of furnishing the statement of financial transaction or reportable account, but does not inform the prescribed income-tax authority or such other authority or agency or
  3. The person discovers the inaccuracy after the statement of financial transaction or reportable account is furnished and fails to inform and furnish correct information within section 285BA(6).