Statement of Financial Transactions (SFT) is a reporting requirement in India under the Income Tax Act.

🔹 What is SFT?

SFT is a statement submitted to the Income Tax Department by specified entities to report high-value financial transactions made by individuals or businesses during a financial year.

🔹 Who files SFT?

Banks, financial institutions, companies, and other specified persons such as:

• Banks (for cash deposits, credit card payments, etc.)
• Mutual fund companies
• Registrars/Sub-registrars (for property transactions)
• Companies issuing shares or debentures

🔹 Purpose of SFT

• To track high-value transactions
• To prevent tax evasion
• To ensure individuals correctly report income in their Income Tax Return (ITR)

🔹 Examples of Transactions Reported

Some common transactions covered under SFT:

• Cash deposits (₹10 lakh or more in a year in savings account)
• Credit card payments (₹1 lakh+ in cash or ₹10 lakh+ through other modes)
• Purchase of mutual funds (₹10 lakh+)
• Purchase/sale of property (₹30 lakh+)
• Fixed deposit investments (₹10 lakh+)

🔹 Due Date

SFT is generally filed annually by 31st May following the financial year.

Important Point     If your transactions are reported in SFT, they will reflect in your Form 26AS / AIS, and you must ensure they match with your ITR.

Major Difference