Importance of SFT Code in Form No. 26AS
SFT refers to the Specified Financial Transaction. It is designed pursuant to rule 114E of the Income Tax act wherein certain specified transactions have been enumerated which is required to be reported by specified entities/ authorities to the Income Tax Department.
👉Form NO. 26AS mentioned the section quote of the specified transactions carried out by the taxpayers. Let us know about the SFT Code and its details.
👉SFT number Particulars Amount (in aggregation of) Person liable to report
👉SFT- 001: Purchase of bank drafts or pay orders in cash Rs. 10 lakh Banking company , co-operative bank
👉SFT- 002: Purchase of pre-paid instruments in cash Rs. 10 lakh Banking company, co-operative bank
👉SFT- 003: Cash deposit in current account Rs. 50 lakh Banking company, co-operative bank
👉SFT- 004: Cash deposit in account other than current account Rs. 10 lakh Banking company, co-operative bank or post master office
👉SFT- 005: Time deposit Rs. 10 lakh Banking company, co-operative bank or post master office or Nidhi or NBFC
👉SFT- 006: Payment for credit card Rs. 1 lakh in cash or Rs. 10 lakh in any other mode Banking company, co-operative bank or post master office
👉SFT- 007: Purchase of bonds or debentures Rs. 10 lakh Company or institution issuing debentures or bonds
👉SFT- 008: Purchase of shares Rs. 10 lakh Company issuing shares
👉SFT- 009: Buy back of shares Rs. 10 lakh Company listed in recognized stock exchange
👉SFT- 010: Purchase of mutual fund units Rs. 10 lakh · A trustee of mutual fund or any authorized person
👉SFT- 011: Purchase of foreign currency Rs. 10 lakh Authorised person under FEMA act
👉SFT- 012: Purchase or sale of immovable property Rs. 30 lakh (individual transaction) Inspector general or registrar or sub registrar
👉SFT- 013: Cash payment for goods and services Rs. 2 lakh (individual transaction) Any person liable to audit u/s 44AB
👉SFT- 014: Cash deposits during specified period (9th Nov to 30th Dec, 2016) Rs. 2.5 lakh Banking company, co-operative bank or post master office
Above chart makes it crystal clear that the SFT return has to be filed by the person with whom transactions have been done and not the person who has done the transaction. While filing income tax returns, taxpayers must just check whether the transaction as reflected In 26AS
👉Is correctIt belong to him And the same is very well explainable to the tax authorities if the information is called for.
👉Nothing more is required to be done by the taxpayers for SFT transactions reflected in 26AS of the assessee,
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