SFT RELATED

Is it mandatory for banks to report cash deposit in SFT?

If AIS doesn't show any amount of cash deposit but in reality there is cash deposit in the books, so on what basis is the decision to be taken for tax audit ?
Replies (2)
Quick Summary
This discussion clarifies the mandatory reporting of cash deposits in banks under SFT (Statement of Financial Transactions). It addresses situations where the AIS (Annual Information Statement) might not reflect a cash deposit, even if it's recorded in the bank's books. The advice given is to verify bank statements against the AIS and ensure a valid source and reasoning for any cash deposit above the reporting limit to comply with tax audit requirements.

SFT report cash deposits above a certain limit. Just make sure you have a valid source and valid reasoning for the cash deposit.
Verify the bank statement based on the AIS

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