The Department of income tax (I-T) has informed banks, foreign exchange dealers, and other reporting entities that they have a few more days to file statements of financial transaction (SFT) returns to report high-value transactions made by their clients in 2022-23.
Deadline extended
This extends the previous deadline of May 31, 2022, for SFT filers for the fiscal year 2022-23. In view of the excessive traffic on the reporting portal, which caused some difficulties for SFT filers, extra time has been granted.
Concerning this, the department stated, “Due to excessive traffic on the reporting portal, some filers may have experienced difficulty filing SFT returns. It is advised that the functionality for filing SFT returns will continue to be accessible for a few more days to facilitate the submission of SFT returns.”
Previously, the department had posted on social media that a delay in filing SFT could result in a fine of up to Rs 1,000 per day of delinquency. PTI reported that non-filing of SFT or filing statements with inaccurate information could also result in a penalty.
What exactly is SFT?
Certain institutions are required by SFT to disclose the specifics of any financial transactions or reportable accounts that they have registered, recorded, or maintained during the year.
According to PTI, the I.T. department maintains account of a person’s high-value transactions using SFT.
Banks, non-banking financial companies (NBFCs), post offices, foreign exchange dealers, sub-registrars, issuers of bonds/debentures, mutual fund trustees, and corporations paying dividends or repurchasing shares are required to submit tax returns.
Process
Entities must consult the official website, https://report.insight.gov.in, for registration and transmission of SFT returns.
Post offices and subregistrars may submit statements directly to TIN facilitation centres.
