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Statement of Financial Transactions to be filed by 31.05.2023.
- SFT is a report of specified financial transactions by specified persons including specified reporting specified financial transactions.
- The income tax authority or another specified authority or agency must provide Statement of Financial Transactions from such specified persons who register, retain, or record such specified financial transactions.
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The income tax authority or another specified authority or agency must receive SFT from such specified persons who register, retain, or record such specified financial transactions. A report of specific financial transactions by specific parties, including a required reporting financial institution, is known as an SFT or Special Financial Transaction. The income tax authority or another specified authority or agency is required to receive SFT from such specified persons who record and maintain such specified financial transactions.
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There are certain kinds of transactions on which the Income Tax Department is especially aggressive at at the moment, and if anyone entered into such a transaction without having an authorised source, they could find themselves in serious trouble into the road. The Income Tax Department is constantly expanding the disclosures and reporting that it accepts. These transactions are referred to as Special Financial Transactions (SFT Reporting) under the Income Tax Act.
- Statement of Financial Transactions must be submitted no later than May 31, 2023.
- If reporting person does not furnish the Statement of Financial Transactions within original deadline, penalty of INR 500 per day of default. Moreover, if the report is not submitted even by the extended deadline mentioned in the notice given to person, a penalty of INR 1000 per day will be imposed starting on day after the deadline mentioned in notice has passed.
