The IT Department has updated new high-value transaction reporting rules via SFT under new Section 508 of the Income Tax Act by replacing the previous Section 285BA.
Banks and many other institutions such as post offices, companies, registrars, insurance firms, NBFCs (Non-Banking Financial Companies) etc. must report large transactions online through Form 165 on the Income Tax portal using Digital Signature Certificate (DSC).
Due Date For Reporting Entity
Reporting must be done by 31st May after the financial year ends on March 31.
Bank-Related High-Value Transactions
| Transaction Type | Limit Per FY (With PAN) |
| Cash purchase of bank draft/pay order | Rs.10 lakh |
| Current account cash deposit | Rs.50 lakh |
| Savings account cash deposit | Rs.10 lakh |
| Fixed Deposit | Rs.10 lakh |
Credit Card Payments
| Payment Mode | Annual Limit |
| Cash | Rs.1 lakh |
| Non-Cash (Digital) | Rs.10 lakh |
Note: Reporting done by bank or credit card companies.
Purchases of Securities (Shares, Mutual Funds, Bonds, Debentures)
If you invest Rs.10 lakh or more in one year in:
- Shares
- Mutual funds
- Bonds
- Debentures
It gets reported by the issuing company. Even if you invest in small parts, total is considered.
Buy-back of Share
Companies report buy-back more than Rs.1 lakh (single or aggregate FY per person) by the company repurchasing its shares, flagging potential profit distribution or manipulation.
Foreign Currency or Forex Transactions
| PAN Status | Annual Limit |
| Active | Rs.10 lakh |
Note - Reporting done by authorized forex dealers under RBI.
Property Transactions
If property value in a single sale deed in a financial year is Rs.45 lakh or more then it is reported by the registrar or sub-registrar.
For Example - Which Property Deals Get Reported?
| Situation | Reportable under SFT |
| Property worth Rs.50 lakh | Yes |
| Properties of Rs.30 lakh each (separate deeds) | No |
| Properties of Rs.30 lakh each (same deed, SDV Rs.60 lakh) | Yes |
| Joint Development Agreement (JDA) with Stamp Duty Value (SDV) Rs.45 lakh or more | Yes |
Note - If actual consideration is lower, Stamp Duty Value is more than Rs.45 lakh then it is reportable.
Stamp Paper Purchase
If you buy stamp paper in a single transaction more than the below mentioned limit, it may be reported to the Department under SFT.
Reporting Limits - Rs.2 lakh
Insurance Premium
If total premium paid in a financial year is more than the below mentioned limits then it is reported by the insurance company.
| Limits in FY | PAN Status |
| Rs.10 lakh | Active |
Cash Purchase of Goods or Services
If a business receives more than ₹2 lakh in cash from a buyer, it must be reported to the Income Tax Department.
Who Has to Report?
Only those businesses who are liable for tax audit.
Conclusion
If you spend big, invest big, or deposit big — the system knows. File wisely as u/s 508, every high-value move is visible. So, make sure your income story matches your money story.
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