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Registrar and share transfer agents submit statement of financial transaction data for mutual fund transactions on a half yearly basis instead of a quarterly basis with effect from 1st April 2023. The data relating to the first half of the financial year ending 30th September and the remaining half ending on 31st March must be furnished on or before 31st October and 30th April respectively. In addition, the notification revises remarks on minimum holding periods for Unit of UTI and Other Units where more than 35 percent of total proceeds are invested in equity shares of domestic companies.
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Corrigendum to Notification No.4 of 2021 Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems) Corrigendum to Notification No.4 of 2021 New Delhi, 15/11/2023 Format, Procedure and Guidelines for submission of Statement of Financial Transaction (SFT) for Mutual Fund Transactions by Registrar & Share Transfer Agent The format, procedure and guidelines for submission for SFT data for mutual fund transactions by registrar and share transfer Agents (RTA) were notified vide Notification no. 4 of 2021 dated 30th April 2021 as mandated by Section 285BA of the Income Tax Act and Rule 114E sub-rule 5A. The notification lists various files, file formats, data types for different data fields that need to be reported, and various DQ rules that should be validated by RTA before submission of the data.
Subsequently, discussions were held with the representatives of Depositories ,RTAs and Exchanges. Accordingly, the following changes are made to the said notification.
The S.No. 6 of the existing notification mentions the following "The statement of financial transactions relating to Financial Year 2020- 21 shall be furnished on or before the 31st May 2021. Thereafter, the statement of financial transactions relating to the quarter ending 30th June, 31st September, 31st December and 31st March shall be furnished on or before 25th of July, October, January and April respectively." This should be read as following: "With effect from 1st April 2023 the statement of financial transactions data will be submitted on half yearly basis instead of existing quarterly basis i.e. data relating to 1st half of the Financial Year ending 30th September and remaining half of the Financial Year ending on 31st March shall be furnished on or before 31st of October and 30th of April respectively."
Corrigendum to Notification No.4 of 2021 4. In Annexure A (Guidelines for Preparation of Statement of Financial Transactions (SFT), S.No. 7 mentions the specified minimum period of holding for different asset class is as under:
| Security Class Code | Security Class Description | Minimum Period of Holding |
|---|---|---|
| EMF | Unit of Equity Oriented Mutual Fund | 12 months |
| UTI | Unit of UTI | 12 months |
| OTU | Other Units | 36 months |
This should be read as :
| Security Class Code | Security Class Description | Minimum Period of Holding | Remarks |
|---|---|---|---|
| EMF | Unit of Equity Oriented Mutual Fund | 12 months | - |
| UTI | Unit of UTI | 12 months | Where more than 35% of its total proceeds are invested in the equity shares of domestic companies, this information should be provided.
Note: Where not more than 35% of its total proceeds are invested in the equity shares of domestic companies, (Specified Mutual Fund), it will always be classified as short-term capital asset (Applicable from 1st April 2023) |
| OTU | Other Units | 36 months | Where more than 35% of its total proceeds are invested in the equity shares of domestic companies, this information should be provided.
Note: Where not more than 35% of its total proceeds are invested in the equity shares of domestic companies, (Specified Mutual Fund), it will always be classified as short-term capital asset (Applicable from 1st April 2023) |
(AMITAV) DGIT(Systems), Delhi
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DGIT(Systems), Delhi
