Document text
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. 4 of 2021
New Delhi, 30th April, 2021
Format, Procedure and Guidelines for submission of Statement of Financial Transactions
(SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
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 pre-filling the return of income, CBDT has issued Notification No.
16/2021 dated 12.03.2021 to include reporting of information relating to Capital gains on
transfer of units of Mutual Funds. 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 format of
control statement to be submitted by the Designated Director is given in Annexure C. The
data structure and validation rules are enclosed in Annexure D and Annexure E respectively.
Notification No. 3 of 2018 dated 05.04.2018 may be referred for the procedure for
registration.
4.
All Registrar and Share Transfer Agents are required to prepare the data file in
prescribed format from their internal system. Reporting entities are required to submit the
data files using SFTP Server using the login credentials (To be communicated separately).
5.
A separate control statement (refer annexure C) is required to be signed, verified and
furnished by the Designated Director.
6.
The statement of financial 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, 31st September, 31st December and 31st March shall
be furnished on or before 25th of July, October, January and April respectively.
7.
The reporting entities are also required to provide information of mutual fund
transactions, reported to Income Tax Department, to the account holder which will enable
taxpayers to reconcile the information displayed in the Annual Information Statement (AIS)
(Form 26AS).
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
2
8.
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, it is required to remove the defects by submitting a
correction/deletion statement.
9.
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.
10.
This issues with the approval of CBDT. This Notification shall come into effect from
the date of issue.
Copy to:
1. PPS to the Chairman and Members, CBDT, North Block, New Delhi.
2. All Pr. Chief Commissioners/ Pr. Director Generals of Income Tax and all Chief
Commissioners/ Director Generals of Income Tax — with a request to circulate amongst
all officers in their regions/ charges.
3. JS (TPL)-I &2/ Media coordination and Official spokesperson of CBDT
4. DIT (IT)/ DIT (Audit)/ DIT (Vig.)/ ADG (System) 1, 2, 3, 4, / CIT (CPC) Bangalore, CIT (CPC-
TDS) Ghaziabad.
5. ADG (PR, PP&OL) with a request for advertisement campaign for the 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.irsofficersoniine.zov.in and in DGIT (S) Comer.
10. ITBA publisher for uploading on ITBA portal.
ADG(Systems)-2, CBDT
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
3
Annexure A
Guidelines for Preparation of Statement of Financial Transactions (SFT)
The guidelines for preparation of Statement of Financial Transactions (SFT) for Mutual
Fund transactions are as under:
1. The Mutual Fund transaction summary file will be used for pre-filling the
gain/income/loss from Mutual Fund transactions.
2. The Mutual Fund Transaction Summary is required to be prepared for user-
initiated debit transactions during the reporting period. For debits through
transfers, information need not be provided if transferor and transferee are same
person.
3. In case of a minor, details of legal or natural guardian (PAN, Name etc.) may be
provided.
4. Data with respect to exchange traded funds and exchange-based transactions, ,
may not be provided.
5. The Estimated Sale Consideration for the debit transaction should be determined
on the best possible available price of the asset with the RTA. In case the sale
consideration related to a sale/transfer is not available, Redemption Offer Price
(Exit Load adjusted NAV) on the date of sale/transfer may be taken. The taxpayer
will be able to modify the sales consideration before filing the return.
6. The securities should be classified into specified security class for determining the
type of asset (short term/long term) and applicable rate.
7. The period of holding (difference between date of sale and date of acquisition of
any security) should be used to classify the asset as short term or long-term asset.
First in First out (FIFO) method should be used for identification of corresponding
purchases and computation of period of holding. Any capital asset held by the
taxpayer for a period of more than minimum period of holding will be treated as
long-term capital asset and remaining assets will be classified as short-term asset.
The specified minimum period of holding for different asset class is as under:
Security
Class Code
Security Class Description
Minimum Period of
Holding
EMF
Unit of Equity Oriented Mutual Fund
12 months
UTI
Unit of UTI
12 months
OTU
Other Units
36 months
8. For every debit transaction, the corresponding credit should be identified using
First in First Out (FIFO) method. The estimated cost of acquisition for the credit
should be determined on the best possible available price with the RTA. In case
the cost of acquisition related to a credit/transfer is not available, NAV for the end
of the day of the credit may be taken. The taxpayer will be able to modify the cost
of acquisition before filing the return.
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
4
9. In relation to a long-term capital asset, being a unit of an equity-oriented fund
acquired before the 1st day of February, 2018, adjusted cost of acquisition shall
be higher of (i) the cost of acquisition of such asset; and (ii) lower of (A) the fair
market value of such asset as on 31st January, 2018; and (B) the full value of
consideration received or accruing as a result of the transfer of the capital asset.
10. The Cost Inflation Index should be used to determine estimated indexed cost of
acquisition wherever applicable.
11. The details of clients and summary values for the transactions for the reporting
period should be reported in MF Account Summary (MF_ACC_SUMM.TXT)
12. The details of transactions effected through transmission and recorded by the RTA
during the year along with off-market transactions recorded in the RTA system
should be reported in Mutual Funds Off-Market Transactions (MF_OFF_TRN.TXT)
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
5
Annexure B
Guidelines for Submission of Statement of Financial Transactions (SFT)
1. Reporting entities are required to prepare the data file in prescribed format from
their internal system. Reporting entities are required to submit the data files using
SFTP Server using the login credentials (to be communicated separately). A
separate control statement (refer Annexure C) is required to be signed, verified
and furnished by the Designated Director.
2. Any file which does not meet the validation requirements will be rejected.
3. In case Reporting Entity needs to modify uploaded data, Correction Statement is
required to be filed. In the Correction Statement, only those records should be
uploaded in which correction is required. In case Reporting Entity needs to delete
uploaded data, Deletion request is required to be filed.
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
6
Annexure C
Control Statement for Mutual Fund Transactions (RTA)
Number of Records Values
A.1
Reporting Entity Name
A.2
ITDREIN
A.3
Registration Number
A.4
Statement Type
A.5
Statement Number
A.6
Original Statement Id
A.7
Reason for Correction
A.8
Statement Date
A.9
Reporting Period Start Date
A.10 Reporting Period End Date
Number of Records
B.1
Mutual Fund Batch File (MF_BATCH.TXT)
B.2
Mutual Fund Account Summary (MF_ACC_SUMM.TXT)
B.3
Mutual Fund Transaction Summary (MF_TRN_SUMM.TXT)
B.4
Mutual Fund Off-Market Transaction (MF_OFF_TRN.TXT)
Sum of Key Values in Rs. (Refer Mutual Fund Account Summary)
C.1
Opening Value
C.2
Purchase Value
C.3
Sale Value
C.4
Closing Value
I, declare that to the best of my knowledge and belief, the information given in the data files
is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961.
Name
Designation
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
7
Annexure D
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 first record in the file should contain header text.
D.1. Mutual Fund Batch File (MF_BATCH.TXT)
This file contains details of reporting entity, principal officer and files uploaded by the
reporting entity
#
Field
Mandatory Format
Remarks
1.
Reporting
Entity
Name
Y
VARCHAR (150)
Reporting Entity Name
2.
ITDREIN
Y
VARCHAR (20)
Registration
number
allotted by ITD
3.
Registration
Number
N
VARCHAR (150)
SEBI Registration number
4.
Statement Type
Y
VARCHAR (2)
NB - New Statement
containing
new
information
DB - Deletion Statement
CB
-
Correction
Statement
containing
corrections for previously
submitted information
5.
Statement Number
Y
VARCHAR (20)
Internal
reference
number
for
reporting
entity
6.
Original Statement
Id
Y
DECIMAL (18,0)
Statement ID of the
original Statement which
is being replaced deleted
or referred in the current
Statement. In case the
Statement is new and
unrelated to any previous
Statement, mention ‘0’
here.
7.
Reason
for
Correction
Y
VARCHAR (1)
Reason for revision to be
stated when the original
Statement is corrected.
(Refer
Permissible
values)
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
8
#
Field
Mandatory Format
Remarks
8.
Statement Date
Y
DATE
Statement Date DD-MM-
YYYY
9.
Reporting
Period
Start Date
Y
DATE
First day of the reporting
period DD-MM-YYYY
10.
Reporting
Period
End Date
Y
DATE
Last day of the reporting
period DD-MM-YYYY
11.
Principal
Officer
Name
Y
VARCHAR (150)
12.
Principal
Officer
Designation
Y
VARCHAR (150)
13.
Principal
Officer
Address
Y
VARCHAR (500)
14.
Principal
Officer
Mobile
Y
VARCHAR (15)
15.
Principal
Officer
Email
Y
VARCHAR (50)
D.2. Mutual Fund Account Summary (MF_ACC_SUMM.TXT)
This file contains details of a person and summary values of the financial transactions for
the reporting period.
#
Field
Mandatory
Format
Remarks
1.
Sequence
Number
Y
DECIMAL (18,0)
Running sequence number for
each line in the file. This
number will be used during
validation checks.
2.
Financial Year
Y
VARCHAR (4)
FY in which transaction was
recorded-YYYY
3.
Reporting Period Y
DATE
Last day of the reporting
period DD-MM-YYYY
4.
AMC Name
Y
VARCHAR (100)
AMC’s Name
5.
AMC Code
Y
VARCHAR (5)
6.
Client ID
Y
VARCHAR (20)
Unique Client ID maintained
by the reporting entity
7.
Client PAN
Y
VARCHAR (10)
PAN of the Client. Mention
PANNOTAVBL if no PAN is
available.
8.
Client Name
Y
VARCHAR (250)
First Holder’s name
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
9
#
Field
Mandatory
Format
Remarks
9.
Client Type
Y
VARCHAR (1)
R - Resident
N- Non-resident
F - FII
Z – Not Classified
10.
Client Status
Y
VARCHAR (1)
M – Minor
O - Other
X - Not Classified
11.
Guardian Name
N
VARCHAR(250)
Mandatory if Client Status is
‘Minor’
12.
Guardian PAN
N
VARCHAR(10)
Mandatory if Client Status is
‘Minor’. Mention
PANNOTAVBL if no PAN is
available.
13.
Client Aadhaar
N
VARCHAR (12)
First Holder’s Aadhaar
14.
Client DOB
N
DATE
First Holder’s DOB/DOI in DD-
MM-YYYY
15.
Client Address
Y
VARCHAR (400)
First Holder’s Address
16.
Client City
N
VARCHAR (40)
First Holder’s Address-city
17.
Client State code
N
VARCHAR (2)
First Holder’s Address- State
(Refer Permissible values)
18.
Client Pincode
N
DECIMAL (6,0)
First Holder’s Address-
Pincode
19.
Client Mobile
Number
N
VARCHAR (15)
First Holder’s Mobile Number
20.
Client E-mail ID
N
VARCHAR (100)
First Holder’s E-mail ID
21.
Joint holding
Y
VARCHAR (1)
Whether joint holding exists
(Y/N)
22.
Second Holder
PAN
N
VARCHAR (10)
Mandatory if Joint holding
exists. Mention PANNOTAVBL
if no PAN is available.
23.
Second Holder
Name
N
VARCHAR (250)
Mandatory if Joint holding
exists
24.
Second Holder
DOB
N
DATE
Second Holder’s DOB/DOI in
DD-MM-YYYY
25.
Third Holder PAN N
VARCHAR (10)
Mandatory if Joint holding
exists. Mention PANNOTAVBL
if no PAN is available.
26.
Third Holder
Name
N
VARCHAR (250)
Mandatory if Joint holding
exists
27.
Third Holder
DOB
N
DATE
Third Holder’s DOB/DOI in DD-
MM-YYYY
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
10
#
Field
Mandatory
Format
Remarks
28.
Opening Value
Y
DECIMAL (18,2)
Value of Holding as on first day
of reporting period
29.
Purchase Value
Y
DECIMAL (18,2)
Sum of purchase cost (net of
transaction charges and stamp
duty) during reporting period
30.
Transaction
Charges
Y
DECIMAL (18,2)
Sum of transaction charges
during reporting period
31.
Stamp Duty
Y
DECIMAL (18,2)
Sum of stamp duty during
reporting period
32.
Sale Value
Y
DECIMAL (18,2)
Sum of Value of Units Sold
(including TDS and excluding
STT and Exit Load) during
reporting period
33.
STT
Y
DECIMAL (18,2)
Sum of STT during reporting
period
34.
Dividend Paid
Y
DECIMAL (18,2)
Sum of dividend received
(inclusive of TDS) during
reporting period
35.
Closing Value
Y
DECIMAL (18,2)
Total Value of Holding as on
the last day of reporting
period
Note: Refer Guidelines for preparation of SFT for more details
D.3. Mutual Fund Transaction Summary (MF_TRN_SUMM.TXT)
This file shall contain details of security level transaction summary in respect of
sales/debits during the reporting period.
#
Field
Mandatory Format
Remarks
1.
Sequence
Number
Y
DECIMAL (18,0)
Running sequence number
for each line in the file. This
number will be used during
validation checks.
2.
Financial Year
Y
VARCHAR (4)
FY in which sale transaction
was recorded-YYYY
3.
Reporting
Period
Y
DATE
Last day of the reporting
period DD/MM/YYYY
4.
AMC Code
Y
VARCHAR (5)
5.
Client ID
Y
VARCHAR (20)
Client ID maintained by the
reporting entity
6.
Client PAN
Y
VARCHAR (10)
PAN of the Client. Mention
PANNOTAVBL if no PAN is
available.
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
11
#
Field
Mandatory Format
Remarks
7.
Client Name
Y
VARCHAR (250)
First Holder’s name
8.
Security Class
Code
Y
VARCHAR (3)
See permissible values
9.
Security Code
Y
VARCHAR (12)
Unique security code (e.g.
ISIN). Mention
ISINNOTAVBLE if no ISIN is
available.
10.
Security
Name
Y
VARCHAR (200)
Name of security (scheme,
plan and option)
11.
Debit Date
Y
DATE
Date of Debit in
DD/MM/YYYY
12.
Debit Type
Y
VARCHAR (1)
Refer Guidelines
A – AMC (redemption)
T – Transfer
13.
Credit Type
Y
VARCHAR (1)
Refer Guidelines
A – AMC (purchase)
T – Transfer
14.
Asset Type
Y
VARCHAR (1)
Refer Guidelines
S – Short Term
L – Long Term
15.
Units
Y
DECIMAL (18,3)
Units sold or transferred.
Refer Guidelines.
16.
Unit price
Y
DECIMAL (18,2)
Estimated Sale price per unit.
17.
Sale
Consideration
Y
DECIMAL (18,2)
Estimated Sale
Consideration.
18.
COA
Y
DECIMAL (18,2)
Estimated Cost of acquisition
without indexation.
19.
Unit FMV
Y
DECIMAL (18,2)
FMV per unit as on
31.01.2018. Refer Guidelines
20.
Total FMV
Y
DECIMAL (18,2)
Total FMV as on 31.01.2018.
21.
Adjusted
FMV
N
DECIMAL (18,2)
If the long term capital asset
was acquired before
01.02.2018, Lower of Sale
Consideration and Total
FMV.
22.
Adjusted COA
N
DECIMAL (18,2)
Cost of acquisition without
indexation (higher of COA
and Adjusted FMV)
23.
Indexed COA
N
DECIMAL (18,2)
Wherever applicable
24.
STT
Y
DECIMAL (18,2)
STT
Note: Refer Guidelines for preparation of SFT for more details
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
12
D.4. Mutual Funds Off-Market Transaction (MF_OFF_TRN.TXT)
This file shall contain details of Mutual Fund off-market transactions recorded for a
person/client during the year.
#
Field
Mandato
ry
Format
Remarks
1. Sequence Number
Y
DECIMAL (18,0)
Running
sequence
number for each line in
the file.
2. Financial Year
Y
VARCHAR (4)
3. Reporting Period
Y
DATE
Last day of the reporting
period DD-MM-YYYY
4. Transfer Date
Y
DATE
Date format- DD-MM-
YYYY
5. Transferor AMC Code
Y
VARCHAR (5)
6. Transferor Client ID
Y
VARCHAR (20)
7. Transferor PAN
Y
VARCHAR (10)
Mention PANNOTAVBL
if no PAN is available.
8. Transferor Name
Y
VARCHAR (250)
First Holder’s name
9. Transferee AMC Code
Y
VARCHAR (5)
10. Transferee Client ID
Y
VARCHAR (20)
11. Transferee PAN
Y
VARCHAR (10)
Mention PANNOTAVBL
if no PAN is available.
12. Transferee Name
Y
VARCHAR (250)
13. Security Class Code
VARCHAR (3)
Refer Permissible values
14. Security Code
Y
VARCHAR (12)
Unique Security Code
(e.g. ISIN)
15. Security Name
Y
VARCHAR (200)
Name of Security
16. Quantity transferred
Y
DECIMAL (18,3)
No of Units transferred
17. Reported Consideration
N
DECIMAL (18,2)
Consideration reported
during transfer
18. EOD Unit Price
Y
DECIMAL (18,2)
Redemption Offer Price
(Exit Load adjusted NAV)
on the date of transfer
19. EOD Value
Y
DECIMAL (18,2)
Estimated
Transaction
Value (End of day price)
20. Reason Code
Y
VARCHAR (3)
Refer Permissible Values
21. Remarks
N
VARCHAR (100)
Reason
Note: Refer Guidelines for preparation of SFT for more details
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
13
Permissible Values - Statement Type
#
Code
Description
1.
NB
New Batch (Statement) containing new information
2.
DB
Deletion Batch (Statement)
3.
CB
Correction Batch (Statement) containing corrections for
previously submitted information
Permissible Values - Reason for Correction
#
Code
Description
1.
A
Acknowledgement of original Statement had many errors
which are being resolved
2.
B
Errors in original Statement are being corrected suo-motu
3.
C
The correction report is on account of additional information
being submitted
4.
N
Not applicable as this is a new statement/test data/ there is
no data to report
5.
Z
Other reason
Permissible Values – Security Class Code
#
Security Class Code
Description
1.
EMF
Unit of Equity Oriented Mutual Fund
2.
UTI
Unit of UTI
3.
OTU
Other Units
Permissible Values – Transaction Reason
#
Reason Code
Reason Description
1.
TRD
Transmission (change in holding in event of death of a
holder)
2.
OTH
Other
3.
ZZZ
Not Specified
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
14
Permissible Values - State code
#
State/Union Territories
Code
1.
Andaman and Nicobar
AN
2.
Andhra Pradesh
AP
3.
Arunachal Pradesh
AR
4.
Assam
AS
5.
Bihar
BR
6.
Chandigarh
CH
7.
Dadra and Nagar Haveli
DN
8.
Daman and Diu
DD
9.
Delhi
DL
10.
Goa
GA
11.
Gujarat
GJ
12.
Haryana
HR
13.
Himachal Pradesh
HP
14.
Jammu and Kashmir
JK
15.
Karnataka
KA
16.
Kerala
KL
17.
Lakshadweep
LD
18.
Madhya Pradesh
MP
19.
Maharashtra
MH
20.
Manipur
MN
21.
Meghalaya
ML
22.
Mizoram
MZ
23.
Nagaland
NL
24.
Orissa
OR
25.
Pondicherry
PY
26.
Punjab
PN
27.
Rajasthan
RJ
28.
Sikkim
SK
29.
Tamil Nadu
TN
30.
Telangana
TS
31.
Tripura
TR
32.
Uttar Pradesh
UP
33.
West Bengal
WB
34.
Ladakh
LA
35.
Chhattisgarh
CG
36.
Uttarakhand
UK
37.
Jharkhand
JH
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
15
Table - Capital Gain Index Chart
Financial Year
Cost Inflation Index (CII)
2001-02 (Base year)
100
2002-03
105
2003-04
109
2004-05
113
2005-06
117
2006-07
122
2007-08
129
2008-09
137
2009-10
148
2010-11
167
2011-12
184
2012-13
200
2013-14
220
2014-15
240
2015-16
254
2016-17
264
2017-18
272
2018-19
280
2019-20
289
2020-21
301
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund
Transactions by Registrar and Share Transfer Agent
16
Annexure E
Validation Rules
The errors have been classified in following categories:
Errors
Record or report level errors which need to be resolved by user as per the
specific error code.
Defects
The reporting entity needs to correct and submit the reports again in the
corrected statement.
Exceptions
The exceptions should be reviewed by the reporting person/entities and if
any information is available, the reporting entity may provide the
information. If any defect is noticed, the reporting entity needs to rectify
the defect by submitting a correction statement.
The validation rules are as under:
#
Error Message
Error Type
File
Rejection
1.
Control Statement Values Mismatch
Error
Y
2.
Sequence Number in Submitted file is not
running sequence number
Error
Y
3.
Client Data not provided for reported
transaction
Defect
N
4.
Mandatory Field is blank
Defect
N
5.
Invalid PAN reported
Exception
N
6.
Excessive Value Reported
Exception
N
7.
Mismatch identified after matching data with
other submitted data
Exception
N
