A taxpayer noticed an incorrect Special Financial Transaction (SFT) entry in their Form 26AS for AY 2020-21, showing a time deposit renewal from a previous financial year as a new transaction. The advice given was that no immediate action is required on the taxpayer's part regarding the SFT entry itself. They should, however, ensure that the correct interest income is declared in their Income Tax Return (ITR).
29 September 2020
Sir/Madam, In my Form 26AS for the AY 2020-21, an SFT is shown as Time Deposits said to be having taken place during the year , Whereas the amount shown as SFT 005 pertains to the renewal of the Time Deposits made in the previous financial year which is shown wrong in my 26AS. What is the action to be taken by me in this regard? N Eshwar.