What Is The Full Form Of SFT In Income Tax?
SFT full form in income tax is Statement of Financial Transactions. This is also known as Form 61A. The Income Tax Department of India requires this under Section 285BA of the Income Tax Act, 1961. It is a key form that is used to list certain financial transactions and high-value transactions over set amounts. The SFT is aimed at making the administration able to track and stop tax evasion by assuring that the relatively bigger financial transactions become visible to the tax authorities.
How to Register and File:
Organizations that need to submit an SFT must first sign up on the official e-Filing website of the Income Tax Department to get a special reporting number called an Income Tax Department Reporting Entity Identification Number (ITDREIN). The said prepared report in XML format is digitally signed and uploaded into the e-portal of the Department. The report shall be submitted no later than May 31 of the year following the fiscal year, during which the relevant transactions were made.
Types of Transactions Reported:
The SFT tracks various transactions, including large cash deposits and withdrawals from bank accounts, buying and selling of property, and dealings in shares, mutual funds, bonds, and large credit card payments that go over certain limits. For example, an aggregate of Rs. 10 lakh or more of cash deposits in a year or Rs. 30 lakh or more of property deals is required to be reported through the SFT.