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 /l1/2023
Format, Procedure and Guidelines for submission of Statement of Financial
Transaction (SFT) for Mutual Fund Transactions bv 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.
2.
Subsequently, discussions were held with the representatives of
Depositories ,RTAs and Exchanges. Accordingly, the following changes are
made to the said notification.
3.
The S.No. 6 of the existing notification mentions the following
"The statement offinancial 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, 31 st September, 31 st December and 31 st 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 3()th
September and remaining half of the Financial Year ending on 31 s t March
shall be furnished on or before 31st
of October and 3()th 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
Security Class Description
Minimum
Period
of
Code
Holding
EMF
Unit of Equity Oriented Mutual 12 months
Fund
UTI
Unit of UTI
12 months
OTU
Other Units
36 months
This should be read as :
Security
Security
Class
Minimum
Remarks
Class Code
Description
Period
of
Holding
EMF
Unit
of
Equity
12 months
-
Oriented Mutual
Fund
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
,
Corrigendum to Notification No.4 of 2021
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
Copy to:
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2. All Pr. Chief Commissioner jPr. Director Generals of Income Tax and all
Chief Commissionerj Director Generals of Income Tax-with a request
to circulate amongst all officers in their regionsj charges.
3. JS (TPL)-I &2j Media coordination anir Official spokesperson of CBDT
4. DIT(IT)jDIT (Audit)jDIT (Vig.)jADG (System) 1,2,3,4,5,6,7 j CIT
(CPC)
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(ITBA)j
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Notification.
6. TPL and ITA Divisions of CBDT.
7. The Institute of Chartered Accountants of India, IP Estate, New Delhi.
8. Web Manager, "incometaxindia.gov.in" for hosting on the website.
9. Database cell for uploading on www.irsofficersonline.gov.in and in
DGIT(S) Corner.
10.
!TBA publisher for uploading on ITBA portal.
DGIT(Systems), Deihi
