Regarding Entry of SFT-005 in Form 26AS

Dear Sirs,

I am a Sr. citizen. My question is regarding the entry by the Bank in my New Form-26AS for the F.Y.2019-20 (A.Y.2020-21).

Sir, I am holding a FDR/TDR since year 2011 with a Bank. Since then I am renewing it from time to time. During this year (i.e. F.Y.2019-20 ) also, I renewed my FDR/TDR for further some years as it was maturing. The BANK has shown it in Form-26AS as SFT-005 under Part E - Details of SFT Transaction.

Sir, I needs your valuable guidance regarding this for following points:

Does the RENEWED fixed deposit or term-deposits are required to be reported as SFT-005? – ( I understand that it is excluded).
As the bank has reported, how to get it rectified?
What formalities need I do?

Please guide me in detail for this.

Regards.

N.M.Talati /25-08-2020

Hello Navin,

Here’s some clarity on your concerns about the SFT-005 entry in Form 26AS related to your renewed Fixed Deposit (FDR/TDR):

1. Are renewed Fixed Deposits required to be reported as SFT-005?

SFT-005 is the Statement of Financial Transactions reporting code used by banks for deposit transactions of Rs. 10 lakh or more in a financial year.
Generally, only new deposits or deposits renewed with a fresh transaction exceeding Rs. 10 lakhs in the financial year are reportable.
However, if you have renewed an FDR and the renewed amount (or fresh deposit made during renewal) exceeds Rs. 10 lakhs, banks are required to report that transaction under SFT-005.
If the renewal is a mere extension without fresh money deposited, typically it should not be reported again.

So, if the bank has reported the renewal as SFT-005, it likely means they considered it a fresh deposit transaction exceeding the reporting threshold.

2. How to get the incorrect SFT-005 entry rectified?

If you believe the bank incorrectly reported the renewed deposit as a fresh deposit, you should:
- Contact the bank branch where the FDR is held.
- Request them to verify the transaction details and correct the SFT report if it is indeed a renewal without fresh funds.
- The bank can then rectify the details in their SFT report submitted to the Income Tax Department.

3. What formalities do you need to do?

Write a formal letter or email to the bank requesting correction of the SFT-005 entry.
Keep copies of all correspondence and your FDR renewal documents as proof.
Follow up with the bank until they confirm correction and inform you when done.
You can also check your Form 26AS periodically to confirm if the correction has reflected.

Additional Notes:

SFT entries are used by the Income Tax Department to identify high-value transactions for tax compliance.
Sometimes, banks take a conservative approach and report such renewals to avoid penalties.
If the SFT is correctly reported, you don’t need to worry unless it leads to confusion in your tax filings.