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DGIT(S)/ADG(S)-2/Reporting Portal/2017/180
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)
Notification No. 3 of 2018
New Delhi,5th April, 2018
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 had been enabled on efiling portal vide
Notification No.1 of 2017 dated 17th January 2017 and the earlier instruction is being
updated in the light of newly launched “Reporting Portal” (https://report.insight.gov.in).
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 Sub-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.
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.
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5.
The values under Statement Type & Person Type and field number in Part B of Form
No. 61A have been modified / enhanced in exercise of the power delegated under sub-rule
(4)(b) of Rule 114E by the Principal Director general of Income-tax (Systems). The detailed
list of modification / changes in schema / data structure of the Form No.61A is attached as
Annexure D.
6.
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) Already registered reporting persons/entities on e-filing portal: The
registration details of already registered reporting persons/entities have been
migrated from e-filing portal to reporting portal. The registered users of such
reporting persona/entities shall be communicated of their new login credentials
through registered email to be used at Reporting Portal. There is no need of
registering again for such persons/entities.
b) New Registration, Generation of Income Tax Department Reporting Entity
Identification Number (ITDREIN) and Principal Officer: 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. The reporting person/entity needs to click on “Reporting Portal” link
under “My Account” tab at e-filing portal to access ‘Reporting Portal’ for first time
registration. The reporting person/entity will be required to enter the details of form
type, category and address of reporting person/entity along with details of Principal
Officer mandatorily. On successful submission, the ITDREIN is generated and the
principal officer will receive a confirmation e-mail on his/her registered e-mail
address and SMS at his/her registered mobile number. There will be no option to
de-activate ITDREIN, once it is generated.
c) Addition of Designated Director: The reporting person/entity is required to
submit the details of designated director either at the time of new registration or at
later stage, but before any statement is submitted on reporting portal. The
designated director will receive a confirmation e-mail with login credentials for login
into reporting portal (https://report.insight.gov.in) at his/her registered email
address. Only, the designated director of the reporting person/entity can digitally
sign and upload the Statement of Financial Transaction (SFT) and the
corresponding correction statements, if any through his/her own login credentials at
the reporting portal or through Generic submission Utility.
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d) Submission of Form No. 61A: Every reporting person/entity is required to submit
the Statement of Financial Transaction (SFT) in Form No. 61A. The prescribed
schema, Report Generation and Validation Utility for Form No. 61A and Generic
Submission Utility can be downloaded from the reporting portal under “Resources”
tab. General and transaction specific guidelines for preparation of SFT in the
specified format is enclosed as Annexure B and Annexure C respectively. The
prepared SFTs to be filed is required to be digitally signed by and uploaded at the
reporting portal or through Generic Submission Utility through the login credentials
(PAN and password) of the designated director.
e) Submission of correction statement: In case, the reporting person/entity comes
to know or discovers any inaccuracy in the information provided in the statement or
the defects have been communicated to the reporting person/entity through Data
Quality Report (DQR) after submission of Statement, it is required to remove the
defects by submitting a correction statement. The number of “Reports Requiring
Correction (RRC)” will be visible against the original statement on reporting portal
under the ‘Statement Pending for Correction’ tab. The user can download the DQR
file from the DQR column under ‘Statements Pending for Correction’ Tab at
Reporting Portal, which can then be opened on the Report Generation utility to find
and fix the errors. The reporting person/entity needs to rectify all the defects till the
number of “Reports Requiring Correction (RRC) becomes zero within specified
time.
f) Deletion of Submitted Reports in a statement: In case, the reporting
person/entity wishes to delete the inadvertently filed reports within a statement, it
can choose the statement type as “Deletion Statement” and file all such reports
within a single statement to be deleted with exact previously filed values against
each field. The manner of filing Deletion Statement shall be similar to submission
of correction statement.
g) Security, archival and retrieval policies: The reporting person/entity is required
to document and implement appropriate information security policies and
procedures with clearly defined roles and responsibilities to ensure security of
submitted
information
and
related
information/documents.
The
reporting
person/entity is also required to document and implement appropriate archival and
retrieval policies and procedures with clearly defined roles and responsibilities to
ensure that submitted information and related information/documents are available
promptly to the competent authorities.
