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DGIT(S)-ADG(S)-2/e-filing notification/106/2016
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)
Notification No. 1 of 2017
New Delhi, 17th January, 2017
Procedure for registration and submission of statement of financial transactions
(SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax
Rules, 1962
Section 285BA of the Income Tax Act, 1961 (hereunder referred to as the “Act”) requires
specified reporting persons to furnish statement of financial transaction. Rule 114E of the
Income Tax Rules, 1962 (hereunder referred to as the “Rules”) specifies that the statement
of financial transaction required to be furnished under sub-section (1) of section 285BA of
the Act shall be furnished in Form No. 61A. The nature and value of transaction to be
furnished by the reporting person under Rule 114 E is enclosed as Annexure A.
2.
As per sub rule (6)(a) of Rule 114E, every reporting person/entity shall communicate
to the Principal Director General of Income-tax (Systems) the name, designation, address
and telephone number of the Designated Director and the Principal Officer and obtain a
registration number. The procedure for registration for statement of financial transactions
(SFT) was specified in Notification No. 13 dated 30th December, 2016. The functionality for
submission of statement of financial transactions has now been enabled and the earlier
instruction is being updated.
3.
As per sub rule (4)(a) of Rule 114E, the statement of financial transactions shall be
furnished through online transmission of electronic data to a server designated for this
purpose under the digital signature of the person specified in sub-rule (7) and in accordance
with the data structure specified in this regard by the Principal Director General of Income-
tax (Systems). The Post Master General or a Registrar or an Inspector General have the
option to furnish the statement in a computer readable media, being a Compact Disc or
Digital Video Disc (DVD), alongwith verification in Form-V on paper. The statement of
financial transactions shall be furnished on or before the 31st May, immediately following the
financial year in which the transaction is registered or recorded. The statement of financial
transaction in respect of Cash deposits during the period 1st April, 2016 to 8th November,
2016 and 9th November, 2016 to 30th December, 2016 shall be furnished on or before the
31st day of January, 2017.
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4.
As per sub-rule (4)(b) of Rule 114E Principal Director General of Income-tax
(Systems) shall specify the procedures, data structures and standards for ensuring secure
capture and transmission of data, evolving and implementing appropriate security, archival
and retrieval policies.
5.
In exercise of the powers delegated by Central Board of Direct Taxes (‘Board’) under
sub rule (4)(a) and (4)(b) of Rule 114E of the Income tax Rules 1962, the Principal Director
General of Income-tax (Systems) hereby lays down the following procedures:
a) Registration and Generation of Income Tax Department Reporting Entity
Identification Number (ITDREIN): The reporting person/entity is required to get
registered with the Income Tax Department by logging in to the e-filing website
(https://incometaxindiaefiling.gov.in/) with the log in ID used for the purpose of filing
the Income Tax Return of the reporting person/entity. A link to register reporting
person/entity has been provided under “My Account>Manage ITDREIN”. Once
ITDREIN is generated, the reporting person/entity will receive a confirmation e-mail
on the registered e-mail ID and SMS at registered mobile number. There will be no
option to de-activate ITDREIN, once ITDREIN is created.
b) Registration of designated director and principal officer: The reporting
person/entity will be required to submit the details of designated director and
principal officer. The designated director and principal officer will receive a
confirmation e-mail with an activation link. An SMS alongwith OTP (One time
Password) will also be sent to the registered Mobile Number. For completion of
registration, the designated director and principal officer should click on the
Activation link, enter the Mobile PIN (OTP), Password and Confirm Password and
click on Activate Button. On success, the registration will be complete.
c) Submission of Form 61A: Every reporting person/entity is required to submit the
Statement of Financial Transaction (SFT) in Form 61A. The prescribed schema for
Form 61A can be downloaded from the e-filing website home page under
“Schema” tab and a utility to prepare Form 61A XML file can be downloaded from
the e-filing website home page under forms (other than ITR) tab. General and
transaction specific guidelines for preparation of SFT in the specified format is
enclosed as Annexure B and Annexure C respectively. The designated director is
required to login to the e-filing website with the ITDREIN, PAN (of the designated
director) and password. The form is required to be submitted using a Digital
Signature Certificate of the designated director.
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Annexure A
Nature and value of transactions to be reported under Rule 114E
Sl.
No.
Nature and value of transaction
Class of person (reporting person)
(1)
(2)
(3)
1. (a) Payment made in cash for purchase of
bank drafts or pay orders or banker's
cheque of an amount aggregating to ten
lakh rupees or more in a financial year.
(b) Payments made in cash aggregating to
ten lakh rupees or more during the financial
year for purchase of pre-paid instruments
issued by Reserve Bank of India under
section 18 of the Payment and Settlement
Systems Act, 2007 (51 of 2007).
(c) Cash deposits or cash withdrawals
(including
through
bearer's
cheque)
aggregating to fifty lakh rupees or more in
a financial year, in or from one or more
current account of a person.
A banking company or a co-operative
bank to which the Banking Regulation Act,
1949 (10 of 1949) applies (including any
bank or banking institution referred to in
section 51 of that Act).
2. Cash deposits aggregating to ten lakh
rupees or more in a financial year, in one
or more accounts (other than a current
account and time deposit) of a person.
(i) A banking company or a co-operative
bank to which the Banking Regulation Act,
1949 (10 of 1949) applies (including any
bank or banking institution referred to in
section 51 of that Act);
(ii) Post Master General as referred to in
clause (j) of section 2 of the Indian Post
Office Act, 1898 (6 of 1898).
3. One or more time deposits (other than a
time deposit made through renewal of
another
time
deposit)
of
a
person
aggregating to ten lakh rupees or more in a
financial year of a person.
(i) A banking company or a co-operative
bank to which the Banking Regulation Act,
1949 (10 of 1949) applies (including any
bank or banking institution referred to in
section 51 of that Act);
(ii) Post Master General as referred to in
clause (j) of section 2 of the Indian Post
Office Act, 1898 (6 of 1898);
(iii) Nidhi referred to in section 406 of the
Companies Act, 2013 (18 of 2013);
(iv) Non-banking financial company which
holds a certificate of registration under
section 45-IA of the Reserve Bank of India
Act, 1934 (6 of 1934), to hold or accept
deposit from public.
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Sl.
No.
Nature and value of transaction
Class of person (reporting person)
(1)
(2)
(3)
4. Payments made by any person of an
amount aggregating to—
(i) one lakh rupees or more in cash; or
(ii) ten lakh rupees or more by any other
mode, against bills raised in respect of one
or more credit cards issued to that person,
in a financial year.
A banking company or a co-operative
bank to which the Banking Regulation Act,
1949 (10 of 1949) applies (including any
bank or banking institution referred to in
section 51 of that Act) or any other
company or institution issuing credit card.
5. Receipt from any person of an amount
aggregating to ten lakh rupees or more in a
financial year for acquiring bonds or
debentures issued by the company or
institution (other than the amount received
on account of renewal of the bond or
debenture issued by that company).
A company or institution issuing bonds or
debentures.
6. Receipt from any person of an amount
aggregating to ten lakh rupees or more in a
financial
year
for
acquiring
shares
(including share application money) issued
by the company.
A company issuing shares.
7. Buy back of shares from any person (other
than the shares bought in the open market)
for an amount or value aggregating to ten
lakh rupees or more in a financial year.
A company listed on a recognised stock
exchange purchasing its own securities
under section 68 of the Companies Act,
2013 (18 of 2013).
8. Receipt from any person of an amount
aggregating to ten lakh rupees or more in a
financial year for acquiring units of one or
more schemes of a Mutual Fund (other
than the amount received on account of
transfer from one scheme to another
scheme of that Mutual Fund).
A trustee of a Mutual Fund or such other
person managing the affairs of the Mutual
Fund as may be duly authorised by the
trustee in this behalf.
9. Receipt from any person for sale of foreign
currency including any credit of such
currency to foreign exchange card or
expense in such currency through a debit
or credit card or through issue of travellers
cheque or draft or any other instrument of
an amount aggregating to ten lakh rupees
or more during a financial year.
Authorised person as referred to in clause
(c) of section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999).
