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Specified reporting entities furnish a statement of financial transactions for dividend income on the reporting portal on or before the thirty-first day of May. The reporting entity prepares the data file in the prescribed ASCII format from internal systems or uses the report preparation utility. The entity validates, compresses, encrypts, and signs the data file using the submission utility before uploading the file. The designated director signs, verifies, and furnishes the statement using login credentials on the portal. Any file that fails validation requirements is rejected.
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DGIT(S)/ADG(S)2/Reporting Portal/2021/180
Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems) Notification No. 1 of 2021 New Delhi, 20 April, 2021 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Dividend income
Section 285BA of the Income Tax Act, 1961 and Rule 114E requires specified reporting persons to furnish statement of financial transaction (SFT).
For the purposes of prefilling the return of income, CBDT has issued Notification No. 16/2021 dated 12.03.2021 to include reporting of information relating to dividend income. The new sub rule 5A of rule 114E specifies that the information shall be furnished in such form, at such frequency, and in such manner, as may be specified by the Director General of Income Tax (Systems), with the approval of the Board.
The guidelines for preparation and submission of Statement of Financial Transactions (SFT) information are enclosed in Annexure A and Annexure B respectively. The data structure and validation rules are enclosed in Annexure C and Annexure D respectively. Notification No. 3 of 2018 Dated 5.04.2018 may be referred for the procedure for registration.
Reporting entities are required to prepare the data file in prescribed format from their internal system. An excel based report preparation utility has also been provided to assist small reporting entities in preparing data file. The data files prepared by internal system/report preparation utility should be validated using Text File Validator/Submission Utility. After validation, the text file is required to be compressed, encrypted and signed using the Text File Submission Utility before uploading on the reporting portal (https://report.insight.gov.in/). Reporting entities, having large number of data files, can also submit the data files using SFTP Server (specific request may be made for SFTP upload).
The statement of financial transactions shall be furnished on or before the 31 st May, immediately following the financial year in which the transaction is registered or recorded.
The statement of financial transaction shall be signed, verified and furnished by the specified Designated Director. Where the reporting person is a nonresident, the statement may be signed, verified and furnished by a person who holds a valid power of attorney from such Designated Director. The data files are required to be uploaded at the reporting portal through the login credentials (PAN and password) of the designated director.
Format, Procedure and Guidelines for submission of SFT for Dividend income
| Transaction Code | SFT 015 |
|---|---|
| Transaction Description | Dividend income |
| Nature and value of transaction | Dividend distributed during the financial year. |
| Class of person required to furnish | A company paying dividend. |
| Remarks | 1. The information is to be reported for all dividend distributed during the financial year. |
Format, Procedure and Guidelines for submission of SFT for Dividend income
Format, Procedure and Guidelines for submission of SFT for Dividend income
The information is required to be uploaded in data file. The data file should be in ASCII format with one report per line. All fields in each file should be delimited with the delimiter “|”. The data structure is as under:
| # | Field | Format | Mandatory | Remarks |
|---|---|---|---|---|
| 1. | RSN | Num (10) | Y | Report Serial Number is the unique number to identify each report in the file. |
| 2. | FY | Num(4) | Y | Financial Year (2020 for FY 202021) |
| 3. | Name | Char (150) | Y | Name of the person/ Entity |
| 4. | PAN | Char (10) | Y | PAN of the person. Mention PANNOTAVBL if PAN is not available |
| 5. | Aadhaar | Char (15) | Aadhaar of the person. | |
| 6. | Address | Char (600) | Y | Complete Address |
| 7. | Pincode | Num (6) | Pincode of the person/ entity | |
| 8. | Mobile | Char (20) | Mobile Number of the person | |
| 9. | Char (100) | eMail Id of the person | ||
| 10. | Dividend | Num (15) | Y | Total dividend paid/ credited during the year (rounded off in nearest rupee) |
Note: The first record in the file should contain header text. There should not be any blank row(s) between reports.
Format, Procedure and Guidelines for submission of SFT for Dividend income
Upload level validation would be done to ascertain that the correct file is being uploaded. The file would be rejected at the upload stage if it does not clear the upload level validations.
| # | Validation | Error Message |
|---|---|---|
| 1. | File should not be more than prescribed size | File is more than prescribed size (refer User Guide). Please split the file. |
| 2. | File name should not have been uploaded earlier (Only for original statement) | The file name has already been uploaded earlier. |
| 3. | File Name is not in the specified format | File Name is not in the specified format. Name of File prepared by the utility should not be modified manually. |
| 4. | The entered Statement ID should be available (For Correction/ Deletion) | The entered Statement ID is not available. Please provide Statement ID generated for original file to submit correction/ deletion. |
| 5. | ITDREIN in the file name should match with the ITDREIN mentioned on Portal | ITDREIN in the file does not match with the ITDREIN mentioned on Portal |
Any file which does not meet the following requirements will be rejected.
| # | Validation | Error Message |
|---|---|---|
| 1. | File should be generated using Submission Utility | File should be generated using Submission Utility. |
| 2. | The header in file should be as per specified format | The header in file should be as per specified format. |
| 3. | Failed Decryption | Failed Decryption. Please encrypt the file with a valid key using Validation and Encryption Utility and resubmit. |
| 4. | Failed Decompression | Failed Decompression. Please compress the file using Validation and Encryption Utility and resubmit. |
| 5. | Failed Signature Check | Failed Signature Check. Please sign the file with the Digital Signature using Validation and Encryption Utility and resubmit. |
| 6. | Signature Mismatch | Digital Signature used in file for signing does not match with Digital Signature registered on Reporting Portal. Please resign the file with the Digital Signature of the Designated Director. |
