1
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. 2 of 2021
New Delhi, 20 April, 2021
Format, Procedure and Guidelines for submission of Statement of Financial Transactions
(SFT) for Interest income
Section 285BA of the Income Tax Act, 1961 and Rule 114E requires specified reporting persons
to furnish statement of financial transaction (SFT).
2.
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 interest 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.
3.
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.
4.
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).
5.
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.
6.
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.
7.
The reporting entities are advised to provide information of interest income, reported
to Income Tax Department, to the account holder (in the form of Interest Certificate either
Format, Procedure and Guidelines for submission of SFT for Interest income
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Annexure A
Guidelines for Preparation of Statement of Financial Transactions (SFT)
Transaction Code
SFT 016
Transaction
Description
Interest Income
Nature and value of
transaction
Interest paid/credited during the financial year.
Class
of
person
required to furnish
(i) A banking company or a cooperative 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) Nonbanking financial company which holds a certificate of
registration under section 45IA of the Reserve Bank of India
Act, 1934 (2 of 1934), to hold or accept deposit from public.
Remarks
1. The information is to be reported for all account/deposit
holders where cumulative interest exceeds Rs 5,000/ per
person in the financial year.
2. Interest which is exempt from tax under the Incometax Act,
1961 such as interest on Public Provident Fund (PPF) Account,
Foreign Currency Nonresident (FCNR) Account, Sukanya
Samriddhi Account, Resident Foreign Currency Account etc.
need not be reported.
3. While reporting the interest amount, deduction of Rs. 10,000/
available under section 80TTA should not be reduced from
interest amount paid/credited.
4. In case of joint account, the interest paid/credited should be
assigned to the first/primary account holder or specified
assigned person as per Form 37BA.
5. In case of minor being the account holder, the information to
be reported in the name of Legal Guardian.
6. Separate report is required to be submitted for each account
type (i.e. SSavings, TTime Deposit, RRecurring Deposit, O
Others) and Interest on same account type is required to be
aggregated in the report.
7. Interest will be the total amount of Interest paid/credited
during the financial year.
Format, Procedure and Guidelines for submission of SFT for Interest income
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Annexure B
Guidelines for Submission of Statement of Financial Transactions (SFT)
1. Any file which does not meet the validation requirements will be rejected.
2. After upload each upload file will be given unique Statement ID.
3. The file upload status will be as below:
•
Uploaded File uploaded and pending for processing.
•
Accepted File accepted after processing.
•
Rejected File rejected after processing.
4. In case of any error, complete file will be rejected and the rejection reason(s) can be
viewed by clicking Rejected link under status column. User need to correct the
relevant error(s) and upload the file again.
5. In case Reporting Entity needs to modify uploaded data, Correction Statement is
required to be filed. In the Correction Statement, only those reports should be
uploaded in which correction is required. Statement ID of the original Statement
which is being corrected should be selected while uploading. The Report Serial
Number (RSN) along with Original Statement ID will uniquely identify the report which
is being corrected. If the correction statement is successfully accepted, the reports in
the earlier statement will be marked as inactive and the newly uploaded report will
be active.
6. In case Reporting Entity needs to delete uploaded data, Deletion Statement is
required to be filed. In the Deletion Statement, only those reports should be uploaded
which are to be deleted. Statement ID of the original Statement which is being deleted
should be selected while uploading. The Report Serial Number (RSN) along with
Original Statement ID will uniquely identify the report which is being deleted. If the
Deletion Statement is successfully accepted, the reports in the earlier statement will
be marked as inactive.
Format, Procedure and Guidelines for submission of SFT for Interest income
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Annexure C
Data Structure
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. Mobile
Char (20)
Mobile Number of the person
7. Email
Char (100)
eMail Id of the person
8. Account
Number
Char (20)
Y
Account Number (in which interest
paid/ credited)
9. Type
of
Account
Char (1)
Y
SSavings,
TTime
Deposit,
R
Recurring Deposit, OOthers
10. Interest
Num (15)
Y
Total interest paid/ credited during
the year (rounded off in nearest
rupee)
