In this Article, we will discuss who is required to file SFT, procedures, due dates, and penalties. So have a look-
A) Who is required to file the SFT?
Business establishments or Professional liable to tax audit under section 44AB of income tax act 1961. It is to be reported by all Doctors, lawyer, architect etc liable for the audit
Entity required to file the SFT –
- Fund houses
- Forex dealer
- Post office
- Nidhi company
- Non-banking financial company
- Property registrar
- Company issuing bonds and debenture
- Listed company buying back of share
B) Nature of transaction in SFT
- Cash payment for purchase of Demand draft for RS 10 lakhs
- Cash payment for purchase of RBI Instruments for RS 10 lakhs
- Cash deposit or withdrawal of Rs 50 lakhs from current accounts
- One time deposit of Rs 10 lakhs or more in a bank
- Payments of Rs 1 lakhs in cash and 10 lakhs in credit card
C) SFT Filling of Audited Clients
Receipt of cash payment exceeding two lakh rupees by any person for sale of goods or services of any nature. Please note in section 114E it is not mentioned aggregate cash sales in a year.
D) Due date of filing the SFT?
Due date to file the SFT is 31st May 2017.
E) Form of filing the SFT
SFT need to be filed in a separate form not with the regular form. Form 61A to be used for the SFT.
F) Is SFT Required to be a file for Nil transaction?
If there is Nil transaction than Client needs to file only Preliminary SFT response in income tax website.
G) How to file the SFT Form in Income tax
a) Go to e-filing portal of Income tax and download the utility (form 61A)
b) Prepare validate and Generate the SFT file
c) Upload the SFT File
d) Login your accounts
e) Click on My accounts
f) Click on Manage ITDREIN
g) Click on Add Authorised person
h) After added the authorized person
i) Upload the XML File
H) Penalty for not filing the SFT
The penalty is Rs 100/- per day if notice not received Rs 500/-per day if Notice received. Rs 50,000/- of providing inaccurate information.