Banks, foreign exchange dealers and other reporting entities have ‘couple of days more’ to report high-value transactions done by their clients in 2022-23 by filing SFT returns, the I-T department has said.
The last date for filing statement of financial transactions (SFT) for 2022-23 fiscal was May 31.
A Statement of Financial Transactions (SFT) is a document that must be filed by certain prescribed entities in India. The SFT provides information on specified financial transactions or any reportable account registered/recorded/maintained by the entity during the year.
The information in the SFT is used by the Income-tax Department to keep a track of specified financial transactions carried on by a person during the year.
In a tweet, the I-T department said due to heavy traffic on the reporting portal, some SFT filers may have encountered difficulties in filing SFT returns.
“… the functionality for filing of SFT returns will remain open for a couple of days more to enable smooth filing of SFT returns,” the tax department tweeted on May 31.
Under SFT, specified institutions are required to furnish the details of certain financial transactions or any reportable account registered/recorded/maintained by them during the year.
Delay in filing of SFT returns may attract a penalty of up to Rs 1,000 for each day of default. Non-filing or filing inaccurate statements may also lead to levy of penalty.
The SFT is required to be filed in Form No. 61A for transactions entered with third parties during FY 2022-23 as per rule 114E of the IT Rules, 1962.
The reporting entities which are required to file SFT returns with tax authorities include foreign exchange dealers, banks, sub-registrar, NBFC, post offices, issuer of bonds/debentures, mutual fund trustees, company paying dividend or buying back shares.
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