File Statement of Financial Transaction (SFTs) online (Filing Deadline 31st May 2026), Pg5

Key Highlights:

• The deadline for filing the Statement of Financial Transaction (SFT) in Form No. 61A online is May 31, 2026.
• 11 entities including Sub-Registrars, banks, NBFCs, and Post Master Generals are required to file SFTs.
• Transactions with a total value ranging from ₹1 lakh to ₹50 lakh or more related to cash payments, property sales, and deposits must be reported.
• A penalty of ₹1000 per day is applicable for delays in filing SFT, and penalties may also be levied for inaccurate filings.

Detailed Insights:

• The SFT is filed for transactions entered with third parties during the Financial Year 2025-26.
• Cash deposits or withdrawals aggregating to ₹50 lakh or more from one or more current accounts must be reported.
• Payments exceeding ₹2 lakh received in cash against the purchase of goods or services must be reported by entities whose accounts are subject to audit under Section 44AB of the Income Tax Act, 1961.
• Accurate and timely SFT filing ensures correct Annual Information Statement (AIS) generation, seamless Income Tax Return (ITR) filing, and fewer taxpayer grievances.
• Post Offices and Sub-Registrars can submit their statements to TIN facilitation centres.

Key Concepts Involved:

• Statement of Financial Transaction (SFT): A report that specifies financial transactions that certain entities must file with the income tax department.
• Annual Information Statement (AIS): A comprehensive statement containing details of financial transactions undertaken by a taxpayer in a financial year.
• Section 44AB: A section of the Income Tax Act, 1961 that mandates tax audits for businesses exceeding a specified turnover threshold.