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What is SFT? Where to file it? In case of a NIL Statement, should it be filed or not?

By Finance Advisory, 3rd Eye Advisory®
What is SFT? Where to file it? In case of a NIL Statement, should it be filed or not?

STATEMENT OF FINANCIAL TRANSACTION (SFT)

Governing Section:
Section 285BA of the Income-tax Act, 1961 under Rule 114E of the Income-tax Rules

Last Date of filing: 31st May 2017

FORM 61A was previously known as Annual Information Return (AIR). With the help of this statement, the tax authorities will collect information on certain prescribed high value transactions undertaken by a person during the year.

FILING OF NIL STATEMENT

  1. Filing of Nil Statement is not mandatory but to be on a safer side, assessee may consider filing such return. Hence, Preliminary response sheet should be filled to avoid show cause notice in future
  2. Whosoever filed the Annual Information Return for FY 2015-16 may file such return for FY 2016-17 even if no specified transaction is done in FY 2016-17.

LEGAL FRAMEWORK

  • Sec 285BA - Obligation to furnish SFT
  • Rule 114 - Furnishing of SFT in Form 61A

RULE 114E

CONSEQUENCES OF NON-COMPLIANCE

  1. Penalty of Rs. 100 per day if notice is not received
  2. Penalty of Rs.500 per day if notice is received.
  3. Penalty of Rs. 50,000 for providing inaccurate information in the statement.

Login to e-Filing Portal can be done through the below mentioned link:

https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html

Article by: Finance Advisory, 3rd Eye Advisory®