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SFT Filling

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SFT Filling

SFT or Statement of Financial Transactions refers to a report that some entities are required to submit to the Income Tax Department in India. It gives particulars of stated monetary transactions as and when they go beyond a specified value.

AKM Global specializes in assisting clients in the preparation and submission of Form 61A, whose scope encompasses the SFT as per the provisions of Rule 114E of the Income Tax Act, 1961. This form captures reporting of certain financial transactions of more than specified amounts and some other activities as listed within the form to enhance transparency and audit compliance.

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Our services include

  • Identifying high worth transactions and specified financial activities which fall under the reporting requirements under section 285BA of the Income Tax Act.
  • Scrutinizing the stockholders’ transactions including dividend income, interest income, and other reportable transactions.
  • Effectuating the units of request form 61A in the manner specified and within the thresholds set by the Income Tax Department.
  • Ensuring timely filing of SFT, specifically by 31 May of the year following the end of the financial year in which the transactions were undertaken.
  • Verifying that Form 61A is filled in will all the necessary information to prevent the submission of incorrect information and avoiding penalties for misleading information.
  • Filing causeless returns of nil SFT where there are no transactions to report to observe statutory provisions and prevent unwarranted court actions.
  • Implementing procedures to ensure accurate and timely reporting, thereby minimizing the risk of penalties.
  • Keeping clients informed about relevant changes and providing advice on necessary adjustments to their reporting practices.

By utilizing our expertise, clients will ensure compliance with the requirements of Form 61A thereby effectively managing their reporting obligations and maintaining transparency in their financial transactions.

Frequently Asked Questions (FAQs)

What is the due date for filing SFT?

The SFT must be submitted on or before May 31, immediately following the financial year in which the transactions took place.

Are individuals required to file SFT?

Generally, no person is obliged to file SFT unless he falls under the category of specified persons such as a trader, property registrar, or owner of a business that fulfills the criteria. The leading filers are institutions, banks, and organizations dealing with large transactions.

What is form 61A?

Form 61A: Also known as the Statement of Financial Transactions, it is an informative statement regarding a specific transaction as mandated under the Income Tax Act 1961.