What is SFT & SFT Codes used in Annual Information Statement (AIS)
Deepak Gupta | Nov 8, 2021 |
What is SFT & SFT Codes used in Annual Information Statement (AIS)
The Income-tax Law has defined the concept of a statement of financial transaction or reportable account to keep track of high-value transactions carried out by the taxpayer. The tax authorities will use the statement to collect information on certain high-value items that have been prescribed.
With the Help of SFT department will collect a person’s transactions over the course of a year Financial transaction statement or Certain prescribed entities (explained later) are required to file a reportable account, and in such cases, statement they are expected to provide details of specific financial transactions or any other financial transactions During the year, they registered/recorded/maintained (explained later) a reportable account.
As per Section 285BA of the Income Tax Act, 1961, specified entities (Filers) are required to furnish a statement of financial transaction or reportable account (hereinafter referred to as ‘statement’) in respect of specified financial transactions or any reportable account registered/recorded/maintained by them during the financial year to the income-tax authority or such other prescribed authority.
In Budget 2021, Income Tax Department had notified the launch of pre-filled Income tax returns for ease and accuracy of filing. To start this process on 12th March 2021, CBDT issued a circular by authorising various entities to report capital gains, dividend income and interest income.
| SI 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 Cash payments for purchase of pre-paid instruments issued by Reserve Bank of India Cash deposits in one or more current account of a person Cash withdrawals from one or more current account of a person | Aggregating to Rs 10 lakh or more in a FY Aggregating to Rs 10 lakh or more during the FY Aggregating to Rs 50 lakh or more in a FY Aggregating to Rs 50 lakh or more in a FY | A banking company or Co-operative bank to which Banking Regulation applies |
| 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 Post-Master General of post office |
| 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 | A banking company or Co-operative bank to which Banking Regulation applies Post-Master General of post office Nidhi Company as per Section 406 of the Companies Act, 2013 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 |
| 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 authorised 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 | Authorised 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 |
| 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 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 Post Master General of post office |
| SFT Number | Particulars | Amount (in aggregation of) | Person liable to report |
| SFT- 001: | Purchase of bank drafts or pay orders in cash | Rs. 10 lakh | Banking company, co-operative bank |
| SFT- 002: | Purchase of pre-paid instruments in cash | Rs. 10 lakh | Banking company, co-operative bank |
| SFT- 003: | Cash deposit in current account | Rs. 50 lakh | Banking company, co-operative bank |
| SFT- 004: | Cash deposit in account other than current account | Rs. 10 lakh | Banking company, co-operative bank or post master office |
| SFT- 005: | Time deposit | Rs. 10 lakh | Banking company, co-operative bank or post master office or Nidhi or NBFC |
| SFT- 006: | Payment for credit card | Rs. 1 lakh in cash or Rs. 10 lakh in any other mode | Banking company, co-operative bank or post master office |
| SFT- 007: | Purchase of bonds or debentures | Rs. 10 lakh | Company or institution issuing debentures or bonds |
| SFT- 008: | Purchase of shares | Rs. 10 lakh | Company issuing shares |
| SFT- 009: | Buy back of shares | Rs. 10 lakh | Company listed in recognized stock exchange |
| SFT- 010: | Purchase of mutual fund units | Rs. 10 lakh | A trustee of mutual fund or any authorized person |
| SFT- 011: | Purchase of foreign currency | Rs. 10 lakh | Authorised person under FEMA act |
| SFT- 012: | Purchase or sale of immovable property | Rs. 30 lakh (individual transaction) | Inspector general or registrar or sub registrar |
| SFT- 013: | Cash payment for goods and services | Rs. 2 lakh (individual transaction) | Any person liable to audit u/s 44AB |
| SFT- 014: | Cash deposits during specified period (9th Nov to 30th Dec, 2016) | Rs. 2.5 lakh | Banking company, co- operative bank or post master office |
| SFT- 015: | Dividend distributed during the financial year | All dividend distributed during the year | A company paying dividend |
| SFT- 016: | Interest paid / credited during the financial year | – | A banking company; A co-operative bank to which the Banking Regulation Act, 1949 applies; Any bank or banking institution referred to in section 51 of the Banking Regulation Act, 1949; Post Master General; Non-banking financial company holding certificate u/s 45-IA of the RBI Act, to hold or accept deposit from public. |
| SFT- 017: | Transactions of purchase and sale of securities | – | Recognised Stock Exchange; Depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; Recognised Clearing Corporation; |
| SFT- 018: | Transactions of purchase and sale of units of mutual fund | Recognised Stock Exchange; Depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; Recognised Clearing |
SFT- 016
| SFT Code | Sub-Code | Description |
| SFT- 016: | SFT- 016(SB) | Interest from savings Bank |
| SFT- 016: | SFT- 016(TD) | Interest from deposits |
SFT- 017
| SFT Code | Sub-Code | Description |
| SFT- 017: | SFT- 017(LES) | Transaction of sale of listed Equity Share |
| SFT- 017: | SFT- 017(LPS) | Transaction of sale of listed Preference Share |
| SFT- 017: | SFT- 017(LDB) | Transaction of sale of listed Debentures |
| SFT- 017: | SFT- 017(ZCB) | Transaction of sale of Zero Coupon Bonds |
| SFT- 017: | SFT- 017(CIB) | Transaction of sale of listed Capital Indexed Bonds |
| SFT- 017: | SFT- 017(OTH) | Transaction of sale of other Listed Securities (Other than a Unit) |
| SFT- 017: | SFT- 017(Pur) | Transaction of purchase of Securities |
SFT- 018
| SFT Code | Sub-Code | Description |
| SFT- 018: | SFT- 018(EMF) | Transaction of sale of Units of Equity Oriented Mutual Fund |
| SFT- 018: | SFT- 018(UTI) | Transaction of sale of Units of Unit Trust of India |
| SFT- 018: | SFT- 018(UBT) | Transaction of sale of Units of Business Trust |
| SFT- 018: | SFT- 018(OTU) | Transaction of sale of other Units |
| SFT- 018: | SFT- 018(Pur) | Transaction of purchase of Units |
SFT shall be submitted on or before 31 May of the FY in Form 61A , immediately following the FY in which the transaction is recorded or registered.
Statement of reportable account in Form 61B shall be submitted by prescribed reporting financial institution for every calendar year on or before 31 May of next year.
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