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Introduction
The Statement of Financial Transactions (SFT) is a mechanism for reporting high-value financial transactions to the Income-tax Department. Specified entities are required to file the SFT by May 31st each year, following the financial year in which the transactions were recorded. However, the SFT related to capital gains must be filed on a half-yearly basis.

Transactions Reported in SFT

S. No.	Nature of Transaction	Value of Transaction	Reporting Person/ Specified Person
*Cash Transactions*
1.	Cash payment for purchase of bank drafts or pay orders or banker’s cheque.	If aggregate payment is Rs. 10 lakhs or more in a financial year.	Bank or Co-op. Bank
2.	Cash payment for purchase of pre-paid instruments issued by the RBI	If aggregate payment is Rs. 10 lakhs or more in a financial year	Bank or Co-op. Bank
3.	Cash deposits in one or more current account of a person	If aggregate amount is Rs. 50 lakhs or more in a financial year	Bank or Co-op. Bank
4.	Cash withdrawals (including through bearer’s cheque) from one or more current account of a person	If aggregate amount is Rs. 50 lakhs or more in a financial year	Bank or Co-op. Bank
5.	Cash deposits in one or more accounts (other than current account and time deposit) of a person	If aggregate amount is Rs. 10 lakhs or more in a financial year	• Bank or Co-op. Bank • Post Master General
6.	Receipt of cash payment for sale, by any person, of goods or services of any nature, not being a transaction whose specific reporting is otherwise required	If amount is more than Rs. 2 lakhs	Any person who is liable for a tax audit under Section 44AB
*Credit Cards*
7.	Payment in cash for one or more credit cards issued to that person	If aggregate payment is Rs. 1 lakh or more in a financial year	Bank or Co-op. Bank or any other company or institution issuing credit card
8.	Payment in any mode (other than cash) for one or more credit cards issued to that person	If aggregate payment is Rs. 10 lakhs or more in a financial year	Bank or Co-op. Bank or any other company or institution issuing credit card
*Investments*
9.	One or more-time deposits (other than a time deposit made through renewal of another time deposit) of a person	If aggregate amount is Rs. 10 lakhs or more in a financial year	• Bank or Co-op. bank • Post Master General • Nidhi Companies • NBFCs
10.	Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company)	If aggregate amount is Rs. 10 lakhs or more in a financial year	A company or institution issuing bonds or debentures
11.	Receipt from any person for acquiring shares (including share application money) issued by the company	If aggregate amount is Rs. 10 lakhs or more in a financial year	A company issuing shares
12.	Buy back of shares from any person (other than the shares bought in the open market)	If aggregate amount is Rs. 10 lakhs or more in a financial year	A company listed on a recognized stock exchange purchasing its own securities
13.	Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund)	If aggregate amount is Rs. 10 lakhs or more in a financial year	A trustee of a Mutual Fund or such other authorized person managing the affairs of Mutual Fund
14.	Purchase or sale by any person of immovable property	If transaction value or valuation by Stamp Valuation Authority is Rs. 30 lakhs or more	Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908
*Foreign Currency Transactions*
15.	Receipt from any person for sale of foreign currency including credit of such currency to foreign exchange card	If aggregate amount is Rs. 10 lakhs or more in a financial year	• Authorised Dealer • Money Changer • Offshore Banking Unit • Any other person authorised to deal in foreign exchange or foreign securities
16.	Expense in foreign currency through a debit or credit card or through issue of Travellers Cheque or Draft or any other instrument.	Aggregating to 10 lakh rupees or more in a financial year.	• Authorised Dealer • Money Changer • Offshore Banking Unit • Any other person authorised to deal in foreign exchange or foreign securities

Reporting of dividend payments, interest payments, and capital gains in the Statement of Financial Transaction (SFT) must be filed as follows:

Dividend (including deemed dividend): By the Company.
Interest: By

Banking company/Co-operative bank,

Post Master General,

NBFCs.

Capital gains on listed securities & mutual fund units: By

Recognised stock exchange,

Depository,

Recognised clearing corporation,

Registrar to an issue/share transfer agent registered with SEBI.

How to File SFT

SFT must be filed electronically using Form 61A by the specified entities. Filing should be done by May 31st of the year following the relevant financial year, except for capital gain transactions, which shall be furnished on half half-yearly basis by the following due dates:

*Half-yearly period*	*Due date of SFT*
1st April to 30th September	31st October
1st October to 31st March	30th April

Penalties for Non-Compliance

Failure to file SFT or providing inaccurate information may lead to penalties:

Rs. 50,000for furnishing inaccurate particulars.
Rs. 500/dayfor failure to file SFT on time.
Rs. 1,000/dayif SFT is not filed in response to a notice.