Friday, May 26, 2017

CBDT clarifies that furnishing Statement of Financial Transaction (SFT) is mandatory or not

CBDT on 26.05.2017 claries that for having even one transaction it is mandatory to file Form 61A for furnishing of Financial Transactions (SFT)  &  SFT Preliminary Response for No Transactions.
Section 285BA of the Income-tax Act, 1961
It requires furnishing of a statement of financial transaction for transactions prescribed under Rule 114E of the Income-tax Rules, 1962 and the due date for filing such SFT in Form 61A is 31st May 2017.
In case of reportable transactions:
ü  The reporting person/entity is required to register with the Income Tax Department and generate Income Tax Department Reporting Entity Identification Number (ITDREIN)
ü  The same can be generated by logging-in to the e-filing website ( with the log in ID used for the purpose of filing the Income Tax Return.
ü  Entity having PAN can take only PAN based ITDREIN and entity having TAN and not PAN can use TAN for generating ITDREIN.
ü   The registration of reporting person (ITDREIN registration) is mandatory only when at least one of the Transaction Type is reportable.

ü  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.