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SFT Transaction for the Term Deposit

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taranath babu

95 Points Posted on 28 May 2023

Under Tax payers Information (TIS) there is reporting related to Purchase of term deposits as Gross Purchase Amount but in actual the source is coming from closing the Previous Term Deposit and Reinvesting can any one suggest how The Income Tax personals will be known that these are reinvested

Replies (2)

Quick Summary

This discussion addresses concerns about how SFT (Statistical Financial Transaction) reporting for term deposits might appear as a new purchase when it's actually a reinvestment of a matured deposit. The consensus is that this is not a significant issue, as it can be easily explained and proven to tax authorities as a reinvestment, not a new investment.

CA Aakarsh Jain

10436 Points Posted on 29 May 2023

There is no need to be worried about this as you can easily prove to them that this was a reinvestment. It doesn't matter if they know it by themselves. If you wanna discuss this in detail, I'm leaving the details in your inbox.