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SFT - 005 Transaction in 26AS for NRE deposit

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Krishna

Software Engineer

69 Points Posted on 18 August 2021

I have some NRE FD of total value > 10 lakh rupees. Those were opened in FY 2020-21. Now In 26AS I have SFT-005 Transaction added for the same. Even I have some FD of 15 lakh in NRE and NRO for 120000 but the SFT -005 have the value of 1423243. Just a additional details that those FD were just opened. They mature in FY 2021-22

Question

1) how do I make sure that the NRE FD are mentioned/addressed correctly since I read that there is No action for SFT-005 but we need to make sure ITR have the value amount of interest credited correctly.

2) how is SFT-005 value is calculated in case of some NRE, some NRO account deposit?

Replies (10)

Quick Summary

This discussion addresses concerns about SFT-005 transactions appearing in Form 26AS for Non-Resident External (NRE) Fixed Deposits (FDs) opened in FY 2020-21. While SFT-005 reporting is triggered for FDs over 10 lakh rupees, NRE deposits are generally tax-exempt. The consensus is that no immediate action is required for these entries in your Income Tax Return (ITR), but it's crucial to keep FD receipts handy for future reference. Ensure that any interest credited to these NRE FDs is correctly declared under the 'exempt' section of your ITR, even if not explicitly shown in your Form 16.

CA Raj Doshi

Practising CA

8954 Points Posted on 19 August 2021

Banks have their own mechanism of calculating and reporting. Since your amounts are close to the form 26AS figures, I would suggest not to give much weightage to it.

CA. Abhilash Krishnan P

Chartered Accountant

533 Points Posted on 19 August 2021

Sft 005 is normally done when fd made is more than 10 lakhs in a year

Krishna

Software Engineer

69 Points Posted on 19 August 2021

The problem is how are NRE deposit declared in ITR since they are tax exempt and Form 16 provided by Bank doesn't have any mention of such deposit. Since if I declare only NRO deposit it will not match figure in any way.

CA. Abhilash Krishnan P

Chartered Accountant

533 Points Posted on 19 August 2021

Your case needs some more details.. please dm me in my number ninefourninesixtwozerofivezerotwozero

Lijo Johny

4 Points Posted on 29 March 2022

Hey Krishna, How were you able to solve this issue? Even in my 26AS the NRE FD is being shown as Purchase of Time Deposits.

Krishna

Software Engineer

69 Points Posted on 09 April 2022

Some information in AIS or 26AS are just FYI type information. For NRI that's is those with purchase of time deposit in NRE account. Just keep your FD's receipt handy. If IT department come back with missing information then you can show them. Upfront you don't need to take any action since as per rule those are tax exempt.

Lijo Johny

4 Points Posted on 09 April 2022

Many thanks man :)

CA Puja Sharma

Chartered Accountant

5010 Points Posted on 09 April 2022

The information provided in the 26AS is for consideration only. Keep all your records of NRE FD available with you for future reference when you receive any Notice from the dept in the future.

Also, ensure that while filing you're IT return you mention the interest component against these NRE FD in your IT return under the exempt section.

Prabhat Jain

3 Points Posted on 21 November 2022

Puja ji, Do you mean for NRE time deposit shown in AS26 as SFT-005, we do not have to mention it in ITR and just keep the fd records handy for future inquiries ?