SFT errors may cause AIS mismatches, refund delays, and ITR notices.
Jasmine | May 29, 2026 |
SFT Deadline Alert: Wrong PAN or Duplicate Entries Can Delay Your ITR Refund
As the deadline for filing the Statement of Financial Transactions (SFT) is getting closer which is May 31 taxpayers may need to carefully check their tax records this year. Several mistakes like wrong PAN details, duplicate transactions, or incorrect reporting by banks, mutual funds, and other institutions can cause mismatches in income tax records and may create problems while filing Income Tax Returns (ITR).
SFT (Statement of Financial Transactions) is a reporting system where specified entities share details of certain financial transactions with the Income Tax Department through Form 61A under Section 285BA of the Income Tax Act.
The Income Tax Department has reminded reporting entities that the last date to file SFT (Statement of Specified Financial Transactions) for FY 2025–26 is May 31, 2026.
Through a social media post on May 26, the department advised entities to avoid common mistakes while filing SFT as proper filing helps reduce errors in taxpayers’ records and makes ITR compliance smoother and also encouraged them to submit complete and accurate information.
SFT filings must be submitted every year by May 31 for transactions recorded during the previous financial year. However, transactions related to listed securities and mutual fund units are reported twice a year on a half-yearly basis.
The information reported through SFT is used by the Income Tax Department to verify the details disclosed by taxpayers while processing ITRs. If there is some mismatch between the taxpayer’s return and the data available with the department, it can lead to notices, scrutiny, or delays in tax refunds.
Specified entities are required to report various transactions such as high-value financial transactions, dividend payments, interest payments, and transactions related to listed securities and mutual funds.
Banks, NBFCs, post offices, forex dealers, sub-registrars, mutual fund trustees, and companies paying dividends or buying back shares are some of the entities required to report transactions under the SFT framework.
According to a PTI report, tax officials have noticed several common mistakes in SFT filings, including duplicate transaction reporting, incorrect transaction amounts, and missing or wrong PAN details. These errors can appear in a taxpayer’s Annual Information Statement (AIS) and other tax records, which may later create issues while filing ITR.
Mistakes are much more common in joint accounts or jointly held investments, where transaction values may get wrongly assigned to one person. Officials have also pointed out issues like lack of proper reconciliation before filing, weak internal checks, and delays in submitting SFT details.
Tax experts advise taxpayers to carefully analyse their AIS and Form 26AS before filing their Income Tax Return this year. If they find any incorrect entry or mismatch, they should report and correct it before filing the return.
A CA advised taxpayers not to ignore SFT errors before filing ITR and said mistakes like wrong PAN details, duplicate entries, or incorrect reporting of interest, dividends, or property transactions can create mismatches in tax records and might lead to notices from the Income Tax Department, delays in refunds, or even defective return notices.
He also pointed out that correcting such mistakes later can be time-consuming because revised SFT filings are not always prioritised before the deadline. Taxpayers should therefore download their Annual Information Statement (AIS), carefully verify all SFT-related details, and immediately report any mismatch through the online portal. According to him, a clean AIS helps ensure smooth and hassle-free ITR filing.
The focus on SFT reporting has become more important as the ITR filing season has started. The Income Tax Department has already enabled online filing for ITR-1, ITR-2, and ITR-4 forms for AY 2026-27 and for individuals who are not required to get their accounts audited, the last date to file ITR is July 31, 2026.
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