Last Date for filing SFT for FY 2018-19 – When to file? – Advisory, Tax and Regulatory Compliance in India, Singapore and USA

Last Date for filing SFT for FY 2018-19 – When to file?

Direct Taxes (including International Taxation) | By Dipanjali Chakraborty | Last updated on May 31, 2019

Like every year, today (31st May 2019) is the last date for filing the “Statement of Financial Transactions (SFT)” for FY 2018-19.

The Income tax Department had brought this compliance to keep a vigilance on the high-value transactions done by the taxpayers. So, any assessee who engages in “reportable transactions” as per the Act, has to comply with this compliance.

Which are considered to be “Reportable Transactions”?

Rule 114E,specifies Form no. 61A, to file SFT. As well Rule 114E specifies ,the nature and value of specified transactions and the class of persons ,who needs to report such transactions.

Sl.	Reporting Person	Nature of Transaction	Value
1	A company or institution issuing bonds or debentures.	Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company)	Aggregating to ten lakh rupees or more in a financial year
2	A company issuing shares	Receipt from any person in a financial year for acquiring shares (including share application money) issued by the company.	Aggregating to ten lakh rupees or more in a financial year
3	A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013)	Buy back of shares from any person (other than the shares bought in the open market)	Aggregating to ten lakh rupees or more in a financial year
4	Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999)	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 traveler’s cheque or draft or any other instrument	Aggregating to ten lakh rupees or more in a financial year
5	Any person who is liable for audit under section 44AB of the Act	Receipt of cash by any person, for sale of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.)	Exceeding two lakh rupees for sale

Apart from the above, various other reportable transactions are to be reported by various other reporting persons like a banking organization, Co-operatives, Inspector General,etc. Those have been mentioned below:

Sl.	Reporting Person	Nature of Transaction	Value
1	A banking company or Co-operative bank to which Banking Regulation applies	Cash payment purchase of bank drafts or pay orders or banker’s cheque	Aggregating to ten lakh rupees or more in a financial year
2	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 ten lakh rupees or more in a financial year
3	A banking company or Co-operative bank to which Banking Regulation applies Companies Act, 2013 (18 of 2013)	Cash deposits in one or more current account of a person	Aggregating to fifty lakh rupees or more in a financial year
4	A banking company or Co-operative bank to which Banking Regulation applies	Cash withdrawals from one or more current account of a person	Aggregating to fifty lakh rupees or more in a financial year
5	A banking company or Co-operative bank to which Banking Regulation applies Post-Master General of post office	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
6	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	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
7	A banking company or Co-operative bank to which Banking Regulation applies or any other company or institution issuing credit card	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
8	Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.	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.

Which Form is to be used for SFT Filing?

SFT is an online filing compliance wherein details are to be submitted in either Form 61A (other reporting entities) or Form 61B (prescribed reporting financial institution).

Is “NIL” filing required to be done?

CBDT has issued press release Dated 26.05.2017 , in which it clarifies the position of law that the registration of reporting person (ITDREIN registration) is mandatory only when at least one of the Transaction Type is reportable.

A functionality “SFT Preliminary Response” has been provided on the e-Filing portal for the reporting persons to indicate that a specified transaction type is not reportable for the year. The purpose of SFT is to avoid the notices to the income tax assessee.

Failure to comply with the Filing of SFT

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, penalty of Rs. 500 per day of default. 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.

Overall, penalty of Rs 500 per day from the expiry of original due date till due date mentioned in the notice and Rs 1,000 per day beyond the due date specified in the notice.

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